Natlata Offers New Financing Deal to Petroneft Resources

LONDON, March 20, 2014 /PRNewswire/ --



Natlata Partners Limited ("Natlata"), the private investment company that is the largest single shareholder in Petroneft Resources PLC ("Petroneft" or "the Company") (AIM: PTR) has today made a subject to contract offer to transfer to it the loan currently owed to Macquarie Bank Limited ("MBL") and proposed an issue of up to USD 10m in new shares for all shareholders.

Natlata has today asked the directors of the Company to unconditionally approve the transfer of the Company's existing loan from MBL (which stood at USD18.8 million as at 30 June 2013) to Natlata, and proposes to have the loan fully converted into ordinary shares in the Company at GBP0.055 per share, but not to trigger any mandatory offer.

Natlata is also proposing to have fresh shares issued up to an amount of USD10 million in an open subscription in which all shareholders can participate, also at GBP0.055 per share.

Natlata has stated that it is ready to complete the transfer of the loan by 15 April 2014, subject to all the parties' cooperation and has asked the Company to respond to this offer by 3pm GMT on Wednesday, 26 March 2014.

If the Company accepts these proposals Natlata proposes that a new EGM is held as soon as is reasonably possible, so that their proposals can be voted on by all shareholders at the earliest opportunity.

Commenting on the announcement, Maxim Korobov, Natlata's controlling shareholder, said, "The proposed transactions will reduce the Company's leverage, improve its financials, reduce the risks of default and bankruptcy, and release significant cash flows for the 2014 capex programme. With these measures, the farm-out to an, as yet, undisclosed "international" oil company, which is likely to be value dilutive to the current shareholders of Petroneft, is unnecessary. In essence, we believe this would be a case of selling off the family silver - nearly 50% of the Company's value - at an, as yet, unknown price, without shareholders' approval. This should be stopped."

"Furthermore, our offer will allow all shareholders to demonstrate their faith in their company's future and participate in the new issue of shares, at the same price as everyone else, and not limit it to a group of, as yet, unknown participants as in the Placing announced by the Company on 17^th March.

"We are not only offering a financial solution but have spent a considerable amount of time putting in place a plan that will finally realise Petroneft's true value. If positive action is not taken we believe that the share price will retreat to its mid-2013 levels on continued stagnation of production and the increased risk of losing one of the Company's main assets under the newly arranged financial restructuring terms."

About Natlata Partners Limited

Natlata Partners is a private investment company that seeks out investments with a focus on Russia and CIS countries that appear to be distressed or are at an early stage of development and which will clearly benefit from effective management and proven sector experience. For more information about Natlata and our investments please contact [e-mail]

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