PetroNeft operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Licences 61 and 67, provided the following update: Over the last 12 months, PetroNeft has significantly increased the focus on LIcence 67, as look to develop the value of portfolio. The company has increasingly seen the significant potential that Licence 67 offers in terms of exploration and production. As a means of moving the Licence forward, in a cost-effective and timely way, a non-binding Heads of Terms has been executed between PetroNeft and Belgrave Naftogas to acquire an additional 40% interest in Licence 67, thereby increasing PetroNeft's interest from 50% to 90%. The terms of the proposed transaction are: Consideration of USD 2.9 million to be satisfied in the following way: Issuance of 80,000,000 PetroNeft ordinary shares to Belgrave Naftogas (representing a 8.7% shareholding) for a value of USD 1.2 million (USD 0.015 per ordinary per ordinary share). Cash consideration of USD 1.7 million which will be financed through a 3 year loan from Belgrave Naftogas to PetroNeft with an interest rate of 8% above Bank of England base rate. The loan and interest to be repaid at the end of the loan. Up to 50% of the loan can be converted by Belgrave Naftogas to PetroNeft ordinary shares at 2 pence per ordinary share during Year 1; 2.5 pence per ordinary share during Year 2; and 3 pence per ordinary share during Year 3. Belgrave Naftogas to have the right to nominate a Director onto the PetroNeft Board. Belgrave Naftogas to be carried by PetroNeft for their 10% share of the Joint Venture costs up to repayment of the loan, after which time Belgrave Naftogas will fund their share of the Joint Venture costs. PetroNeft will now work with Belgrave Naftogas to finalise and implement a work programme for the development of Cheremshanskoye and the further investigation of Ledovoye over the winter months. PetroNeft acquired Licence 67 during a state auction December 2009. The following year, Arawak Energy Russia B.V. (now Belgrave Naftogas) exercised its right to acquire a 50% non-operated interest from PetroNeft. The licence is located in a highly prospective part of the Tomsk region being surrounded by significant adjacent producing fields and served by a good road network with all season roads crossing the licence. Since the acquisition of the licence, the partnership has acquired two 3D seismic surveys totaling 157km² over the Cheremshanskoye and Ledovoye fields and drilled three wells, two on the Cheremshanskoye field and one on the Ledovoye field, with all the wells encountering oil. The last well was C-4 which was drilled in 2018 and tested up to 399 barrels of fluid a day. Following the drilling of the L-2a well on the Ledovoye field, in 2016 Ryder Scott calculated 2P reserves for the field of 14 mmbbls and 3P reserves of 17.4 mmbbls.