PetroNeft completes $6.7m fundraising

Irish exploration company PetroNeft Resources has raised $6.7 million in a share placing.

PetroNeft has also agreed an additional $1.5 million debt drawdown with Arawak Energy.

The proceeds of the placing and increase in the Arawak loan will be used for the purchase and delivery of supplies and equipment, working capital and the payment of $2.5 million to Macquarie.

"We are pleased with the fundraising which will allow us to purchase and transport materials to the field this winter to conduct a full scope of work in 2014 following completion of the farmout," PetroNeft chief executive Dennis Francis said.

“We have also made significant progress on the farmout in the past month and anticipate that it will be completed at the end of Q1 or shortly thereafter,” he added.

The Dublin-headquartered firm also said production has increased at its 61 and 67 licences in Russia.