Natlata Welcomes Support of PetroNeft Shareholders and puts Board on Notice After EGM

LONDON, May 12, 2014 /PRNewswire/ --

Natlata Partners Limited ("Natlata"), the private investment company that is the largest single shareholder in PetroNeft Resources PLC ("PetroNeft" or "the Company") (AIM: PTR), welcomes the support received from so many shareholders before and during the EGMs in Dublin last Friday.  This support was achieved in the face of a Board campaign that focused on scaremongering about Natlata rather than giving any clear plans as to how the Board intends to solve the company's manifest problems.  The fact that a large number of independent shareholders felt that they needed to vote and to speak out against the Board at the EGM shows that their patience is wearing very thin.  

Commenting on the EGM result, Maxim Korobov, founder of Natlata Partners, said:

"I would like to thank the shareholders who saw through the obscuration of the Board's scaremongering and supported our efforts to try to ensure that the company could and would deliver on its potential. I would also like to thank the shareholders for their kind words to me during and after the EGM.

"We agree with ISS and Glass Lewis that there are still 'serious corporate governance concerns' at PetroNeft.  We continue to question the motives of a Board that effectively holds shareholders ransom and shamelessly refuses to deliver much-needed financing unless shareholders agree to three more years of their employment.  We continue to question the motives of a Board that only uses one drilling contractor that regularly fails to deliver and is owned by a member of the Board.  And we continue to question the motives of a Board that refuses to have any independent oversight.

"We note the commitment by the Chairman that the farm-out will be carried out on the same terms as indicated in PetroNeft's circular on 24 April 2014, and look forward to seeing the regular progress reports on the farm-out that the Chairman promised to provide.

"The Board has not secured a victory in any true sense of the word - it has merely staved off defeat.  They must also be aware that if they fail to deliver this time, there will be no more second chances.  Natlata will continue to monitor the company closely, and continue to act on behalf of the many disappointed shareholders who want the company to deliver on its promises, and who want to realise a proper return on their investment."

About Natlata Partners Limited 

Natlata Partners is a private investment company that seeks out investments with a focus on Russia and CIS countries that appear to be distressed or are at an early stage of development and which will clearly benefit from effective management and proven sector experience.  For more information about Natlata and our investments please contact info@natlata.com.  More details on our proposals for PetroNeft can be found at http://www.value4petroneft.com.

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