PetroNeft avoids shareholder dispute with board restructure

Russia-focused oil and gas exploration and production company PetroNeft Resources managed to avoid a particularly fraught shareholder meeting on Monday, reaching agreement with its largest shareholder Natlata Partners to restructure its board.

The AIM-traded company confirmed that, as a result, Natlata has agreed to withdraw all of its resolutions due to be considered at the reconvened extraordinary general meeting taking place today.

PetroNeft’s board has appointed Maxim Korobov as a non-executive director and Anthony Sacca and David Sturt as independent non-executive directors.

David Sanders, Gerry Fagan and Paul Dowling have left the board, though Dowling will remain as the company’s chief financial officer.

"We are very pleased to come to a workable compromise with our largest shareholder Natlata,” said PetroNeft’s chairman G. David Golder.

He said this is the best way forward for all the shareholders in the company, with the agreement allowing it to implement its recently-announced Licence 61 work programme with partner Oil India, along with a new emphasis on business development.

"I would like to thank the directors who are stepping down for their service and commitment as board members. I would like to extend particular thanks to Gerry Fagan, who is stepping down as an independent Non-Executive Director,” Golder added.

The board now consists of Golder as chairman, Dennis C. Francis as CEO and Korobov as non-executive director. Thomas Hickey, Sacca and Sturt at independent non-executive directors.

"Natlata has agreed to conclude an agreement with the board of PetroNeft in the best interests of all shareholders,” said Natlata Partners owner Maxim Korobov.

“We look forward to working with the board to develop the business and to bringing our experience in the Russian market to grow the company and increase shareholder value."

At 1110 BST, shares in PetroNeft Resources had jumped 5.41% to 2.24p.