- PetroNeft, an oil & gas exploration and production company operating in the Tomsk Oblast, Russian Federation, is pleased to announce the completion of the Licence 61 Farmout to Oil India Limited (OIL).

Following the granting of Russian Regulatory Approval on 30 June 2014 the transaction with Oil India Limited was completed on 3 July 2014. All debt due to Macquarie and Arawak has been repaid from the initial proceeds of $35m and the Company is now debt-free.

Under the terms of the Licence 61 Farmout, OIL has acquired a 50% interest in Licence 61 in return for a total Investment of up to $85m.

Highlights included:

- All debt repaid

- Drilling to re-commence at Licence 61 this month as part of a fully funded exploration and development programme

- Introduces a strong industry partner seeking to build an oil and gas business and strategic position in Russia

- New chapter begins for a significantly strengthened PetroNeft

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