Petroneft Resources Share Discussion Threads

[kevjones2] 02/2/2021 14:35

Petroneft is up about 250% since January 13th and nearly 300% since December first. Good luck to anyone who got in at those levels. Think there's a lot more to come as well.

[tomboyb] 02/2/2021 13:59

Nice move today -

[rolo7] 02/2/2021 08:57

hxxps://www.share-talk.com/share-talk-bulletin-board-heroes-monday-1st-february-2021/
target 2.25p

[tomboyb] 01/2/2021 14:27

In the Irish times -

[tomboyb] 01/2/2021 09:26

So do I -

Those licences may well be worth a fair bit -

Already production for current is almost 2000 bopd -

New non-exec built previous business from $20mill to $500mill+ -

You can see why management in last statement were very positive for 2021 -

[goldenshread] 01/2/2021 08:28

A very positive update again today with the emphasis on delivering shareholder value.

This has to be one of the cheapest producing junior oil plays on the London market currently, £10m m/cap, stock is very had to acquire in any size.

I fully believe Petroneft will be trading far higher in a few months time.

[tomboyb] 01/2/2021 07:55

Acquisition of Licence 67 -

New non - exec excellent Bio

He joined the Vitol group in 1995 to head up the growth of the group's portfolio of upstream assets and became CEO of Arawak Energy in 2002. Alastair grew the company from an initial $20M valuation with zero production to a $0.5Bn company producing 12,000 boepd from assets in Kazakhstan and Russia.

[tomboyb] 01/2/2021 07:49

Petroneft Resources PLC Acquisition of 40% Interest in Licence 67
01/02/2021 7:00am
UK Regulatory (RNS & others)

Petroneft Resources (LSE:PTR)
Intraday Stock Chart

Monday 1 February 2021

Click Here for more Petroneft Resources Charts.
TIDMPTR

RNS Number : 4605N

Petroneft Resources PLC

01 February 2021

PetroNeft Resources plc

1(st) February 2021

PetroNeft Resources plc ('PetroNeft' or 'the Company')

Acquisition of an additional 40% Interest in Licence 67

Director Appointment

PetroNeft (AIM: PTR) an oil & gas exploration and production company, operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Licences 61 and 67, is pleased to provide the following update:

Highlights

-- Execution of Sales Purchase Agreement to acquire an additional 40% interest in Licence 67.
-- Alastair McBain appointed as a Non-Executive Director of the company.
PetroNeft is pleased to annouce that it has signed a Sales and Purchase Agreement with Belgrave Naftogas (formerly Arawak Russia B.V.) for the acquisition of a 40% interest in Licence 67 for US$2.9 million to be satisfied in the following way:

-- Issuance of 80,000,000 PetroNeft ordinary shares to Belgrave Naftogas (representing a 8.7% shareholding) for a value of US$1.2 million (US$0.015 per ordinary per ordinary share).

-- Cash consideration of US$1.7 million which will be financed through a 3 year loan from Belgrave Naftogas to PetroNeft with an interest rate of 8% above Bank of England base rate. The loan and interest are to be repaid at the end of the loan. Up to 50% of the loan can be converted by Belgrave Naftogas to PetroNeft ordinary shares at 2p per ordinary share during Year 1; 2.5p per ordinary share during Year 2; and 3p per ordinary share during Year 3.

Belgrave Naftogas is to be carried by PetroNeft for their 10% share of the Joint Venture costs up to repayment of the loan, after which time Belgrave Naftogas will fund their share of the Joint Venture costs.

Completion of the acqusition is subject to certain conditions precedent, which are expected to be satisfied no later than the 12(th) March 2021.

Licence 67 contains two oil fields, Ledovoye and Cheremshanskoye. In 2016 Rhyder Scott calculated 2P reserves for the Ledovoye field of 14 mmbbls and 3P reserves of 17.4 mmbbls. In 2019 and following the successful C-4 well, the Russian State Reserves Committee approved C1+C2 reserves (approximately equivalent to International 2P reserves) for the Cheremshanskoye field of 19.2 mmbbls. This qualifies the field for a small field partial exemption of the state Mineral Extraction tax. The Cheremshanskoye is about to commence all year round production imminently.

Net Assets of Russian BD Holdings B.V,.a joint venture company which is currently 50% owned by PetroNeft and 50% by Belgrave Naftogas and owns 100% interest in Licence 67, as at 30(th) June 2020 amounted to $6,043,753 with Loss for continuing operations before tax for the six months ending 30(th) June amounting to $254,902 unaudited.

As previously announced, Belgrave Naftogas has the right to nominate a Director to the board and has nominated Alastair McBain as a non-executive director with immediate effect.

Alastair has over 37 years' experience in the International Oil and Gas industry. He spent the first 17 years of his career at Royal Dutch Shell in numerous senior international commercial positions including assignments in Singapore, Dubai, China and Venezuela. He joined the Vitol group in 1995 to head up the growth of the group's portfolio of upstream assets and became CEO of Arawak Energy in 2002. Alastair grew the company from an initial $20M valuation with zero production to a $0.5Bn company producing 12,000 boepd from assets in Kazakhstan and Russia. He also oversaw the migration of the company from a junior listing on the Toronto exchange to a full listing on the London Stock Exchange. Following the sale of Arawak's producing assets, he worked with Vitol in a variety of senior positions including board Chairman of GeoAlliance, one of Ukraine's leading producers of gas liquids. He left Vitol in early 2020 to form Sarum Energy, a company which, through its Dutch subsidiary, owns a 50% interest in Licence 67. He holds an MA in Oriental Studies from the University of Oxford and in addition to his native English, is also a fluent Mandarin speaker.

David Sturt, CEO PetroNeft commented:

"This is an important step forward for PetroNeft and is strong demonstration of our increasing confidence in and understanding of the quality of our assets. Our low-cost operational activity on Licence 67 has already delivered first production. We are confident that the work we have done will provide a platform for significant future growth on this licence. This is another important milestone in delivering the true value of our assets and delivering value to shareholders."

Alastair McBain, Incoming Director of PetroNeft Resources plc, commented:

"I am very pleased to be joining the Company at this important stage in the Company's development. Being the former CEO of Arawak Energy, I have worked alongside PetroNeft for many years and believe that these assets can deliver value to shareholders. I look forward to working with the management and other board members."

G. David Golder, Chairman of the Board commented:

"I would like to welcome Alastair McBain as he joins the Board. His experience and track record particularly in Russia of delivering shareholder value combined with his considerable commercial experience will be very valuable to the company."

The following information is disclosed pursuant to Rule 17 of the AIM Rules for Companies and Rule 5.22 (b) of Chapter 5: Additional Rules for the Euronext Growth Market operated by Euronext Dublin.

Alastair Mc Bain, aged 64, has held the following directorships and/or partnerships in the past 5 years:


Current: Past: Arawak Energy Int. Ltd.
Sarum Energy Ltd. GeoAlliance
Belgrave Naftogas Commonwealth Gobustan Ltd.
B.V. Umm Al Quwain Petroleum
ADM Consulting FZE Energold drilling
Sarum Management Services

[chris cat] 31/1/2021 20:20

Hope you're right Tad, I think one of the unstimulated wells you refer to was announced at 600+ BOPD, then suddenly there was a placing and miraculously shortly after the placing the rate subsequently depleted rapidly

[tadtech] 31/1/2021 18:34

Very pleased to see last weeks operations update, a very credible production increase to 1850 bopd from Licence 61 despite woeful weather conditions, fracking of two wells about to start this week, will increase production further.

Licence 67 is going to be the value driver, year round production to start this month, will initially add another 500 bopd - the most interesting aspect is they are bringing in a workover rig to target the near surface Upper Jurassic oil column.

Long term holders may remember the excellent unstimulated flows attained from the Upper Jurassic's back in 2009/10

In my view Petroneft remains materially undervalued, the market has yet to fully appreciate the rapid progress new management are achieving in short time, the emphasis is to deliver shareholder value.

Based on peers Petroneft should be valued on, at least, a couple of multiples of the current maket value of circa £10m, news in February will be strong (as suggested by the CEO) if all goes to plan by month end the shares could quite easily be trading 2p-3p (£16m-£24m m/cap)

No advice intended

[mrmcnee] 30/1/2021 09:11

I strongly suggest folk who are considering a investment in a junior O&G proposition take the time to read the recent presentation and listen to the last CEO interview.

There does appear to be a material change going on at Petroneft, talk about delivering shareholder value is the No1 mission statement.

Still under £10m market value, it's a great entry point.

Presentation



Recent interview

[broken_arrow1] 29/1/2021 15:00

Quiet today but they want a LARGE premium (1.33p) for a decent slice of shares, tell you where it is going soon enough.

CEO said more news will be forthcoming over the next week or two, year round production about to commence in February, a real share price driver when that is announced.

Get in before the herd, it's chicken feed cheap.

[mrmcnee] 29/1/2021 06:57

This could be one of the largest % risers on AIM this year, enough said.

[goldenshread] 28/1/2021 23:07

Getting back near 100% ownership of Licence 67 is game changing for Petroneft, the C-4 well alone flowed 476 bopd there is significant value ahead from this licence as made clear by the CEO.

Year round production will start in February, with low cost stimulation production should surge higher in Q1 & Q2,

The market will continue to re-rate Petroneft from a very low base.

Anything under 2p is dirt cheap, if all goes to plan the shares could be in double figures by year end.

[chris cat] 28/1/2021 14:48

I suspect PTR's historically poor performance will have a few people nervous and that will contribute to the low share price Lots of trust issues I reckon

[broken_arrow1] 28/1/2021 14:36

Still nothing available online, basically this stock is mispriced, surely it should be valued north of £50m not £10m with those recent oil production numbers + they could double PDQ.

No wonder you cannot buy, fair value 5p a share right now.

[partner] 28/1/2021 14:20

Nothing available on line ,even for 25000 shares.

[tomboyb] 28/1/2021 14:17

1.2p on ask and 500k paid for large premium -

Re-rate on the way -

[broken_arrow1] 28/1/2021 13:13

Premium being asked on just £1500 of shares !

[chris cat] 28/1/2021 09:53

SD - I made a good bit on PL's imperial, In all honesty that is the main reason I bought PTR...the adjacent acreage, thought/hoped history could repeat itself and when the shares went to 75p I thought I was the next Warren Buffet. I've also had quite a bit of pain in PL's subsequent business PPC, but hopefully things are starting to turn there as well.

[space_dust] 28/1/2021 09:30

CC

Looks like to old management were simply not up to the job of extracting oil, the area is oil rich, if I recall a Peter Levene vehicle called Imperial Energy operated right next door to Petroneft, they were bought out for $1.5b

It looks a great opportunity for new investors as production looks like hitting and surpassing historic highs.

5p a share would only equal £40m m/cap now.

[chris cat] 28/1/2021 09:15

If Only I had sold my shares at that 75p mark... held on right through to today, soul destroying stuff and with Mr Sturt's recent impact, it's hard to imagine WTF the previous management team were doing for the past 10 years....Building bloody refineries that could process 000's of BOPDs before realising they couldn't get the stuff out of the ground if I remember rightly. DBarron...Are you still here?
Still, some hope at last.

[goldenshread] 28/1/2021 09:03

bad gateway

Their JV offers them 50% of oil sales, the same as in 2017, the key is they are about to deliver year round production from Licence 67 for the 1st time ever, starting next month, that is a material event.

I am staggered PTR only has a market value of £9m, back in 2009 I see the share price hit 75p delivering a market value of £240m.

This is a amazing opportunity for folk to buy at crazy valuation levels.