- Natlata Partners, the private investment company that is the largest single shareholder in Petroneft Resources (PTR) says it has noted that the Board of Petroneft has finally called an Extraordinary General meeting in accordance with its requisition of 17 February 2016.

Natlata stated that it is studying the circular and will be responding in detail with a detailed letter to all shareholders that outlines its vision for the Company.

It added:

"As expected the Board's circular contains vague and misleading allegations about Natlata and its proposals.

"It is immediately apparent that the Board offers no solutions of its own, except spending more money, with a shareholder loan of UDS35m offered by Farmout partner Oil India, with certain conditions attached. This is similar tactics to what the Board tried in 2014, when last challenged by Natlata. The result of that strategy is clear for all to see, with USD45m spent for no material increase in production, and worse, only half of that production now accrues to PetroNeft.

Maxim Korobov, Natlata's controlling shareholder, said:

"The Board of PetroNeft are continuing to refuse to face the facts and recognise that they are to blame for getting the Company into the current poor financial situation. Over the last two years they have spent USD45m to end up with half the production accruing to the company and its shareholders. This gross mismanagement has to stop, and it needs to stop right now.

"Our proposals are aimed solely at unlocking the value of company for the benefit of all shareholders. In the next week we will be sending out our response and look to having a full and open discussion with shareholders in the run-up to the EGM."

At 12:09pm: [LON:PTR] Petroneft Resources PLC share price was -0.23p at 2.08p

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