PetroNeft Resources: Annual Report 2021

PetroNeft Resources plc

Contents

Group information ………………………………………….. ……………………………………………. …. …………………………..

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Board of Directors ……………………………………….. …………………………………………. …………………………….

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Strong points ………………………………………… …………………………………………. …………………………………………..

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Chairman’s statement ………………………………………….. … ……………………………………….. … ……………………….

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Director General’s Report ………………………………………….. ……………….. ………………………… ……………….. ………….

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Financial analysis………………………………………… ………………………………………….. …………………………….

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Director’s report ………………………………………….. … ……………………………………….. … ……………………………

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Independent auditor’s report to the members of PetroNeft Resources plc ……………………………. .

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Consolidated income statement …………………………………….. ………………. …………………………. ………………. ………

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Consolidated statement of comprehensive income ……………………………. ………………… ………………………. ………………

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Consolidated statement of financial position …………………………………………. ………………….. ………………………. ………………….

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Consolidated statement of changes in equity ………………………………………….. ……. ………………………………………… …….

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Consolidated cash flow statement …………………………………….. ……….. …………………………………….. ……….. ……

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Statement of the company’s financial position ……………………………. …….. …………………………………… …..

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Statement of changes in the company’s equity ………………………………………….. ……… …………………………………. ……

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Business cash flow statement ………………………………………….. ……… …………………………………. ……… …………

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Notes to the financial statements ………………………………………… ………………… ………………………. ………………… ………

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Code of corporate governance ……………………………………….. …… …………………………………….. …… ………….

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Declaration under subsection 172(1) ……………………………. ……. …………………………………….. ……. …………..

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Glossary…………………………………………. ………………………………………….. …………………………………………

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Annual report and financial statements

Forward-looking statements

This report contains forward-looking statements. These statements relate to the Group’s outlook, developments and commercial strategies. Forward-looking statements are identified by their use of words and phrases such as “believe”, “could”, “intend”, “potential”, “estimate”, “expect”, “may”, “will”. or the negative form thereof, variations or comparable expressions, including references to assumptions.

The forward-looking statements contained in this report are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These forward-looking statements speak only as of the date of these financial statements.

PetroNeft Resources plc

board of directors

Alastair McBain – (Non-Executive Chairman) (66 years old)

Alastair was appointed non-executive director of the company in January 2021 and became non-executive chairman on February 19, 2021. He had a very successful 37-year career in the international oil and gas industry. I first worked for 17 years at Royal Dutch Shell in many high level international commercial positions. He joined the Vitol Group in 1995 to lead the growth of the group’s upstream asset portfolio and became CEO of Arawak Energy in 2002. He grew the company from an initial valuation of $20 million with zero production to a $0.5 billion company producing 12,000 boepd assets in Kazakhstan, Russia and Azerbaijan. He also oversaw the migration of Arawak Energy from a junior listing on the Toronto Stock Exchange to a full listing on the London Stock Exchange. Following Vitol’s acquisition of Arawak, he worked with Vitol in various leadership roles, including Chairman of the Board of GeoAlliance, one of Ukraine’s leading independent natural gas and gaseous liquids producers. . He left Vitol in early 2020 to form Sarum Energy, a company that acquired a 50% stake in License 67. Sarum Energy still retains a 10% stake in License 67, having sold the remaining 40% to PetroNeft in March 2021. He holds an MA in Oriental Studies from Oxford University and in addition to his native English he is also fluent in Mandarin.

David Sturt – (Chairman and Chief Executive Officer and Executive Director) (60 years old)

David was appointed Non-Executive Director of the Company in April 2016 and became Chief Executive Officer on March 25, 2019. He was a member of the Remuneration Committee until his appointment as Chief Executive Officer. David has over 35 years of international experience in the oil and gas industry gained working on projects in Europe, CIS, Africa and South East Asia in a variety of technical and management positions at Conoco -Philips, Hess, PetroKazakhstan, Exillon Energy, Ukrnafta and Azimuth Energy. In 2010, he was founding partner of VistaTex Energy, which built a portfolio of generation assets across the onshore United States. The company was then successfully sold to Dome Energy in 2014. In June 2022, he resigned as non-executive director of Petrosibir AB. , a Swedish company with oil and gas interests in the Bashkiria and Komi regions of Russia. David holds an Honors BSc in Earth Science from Kingston University, an MSc in Exploration Geophysics from the University of Leeds and a Postgraduate Diploma in Business Administration from the Heriot Watt University.

Pavel Tetyakov – (Vice President of Business Development and Executive Director) (42)

Pavel was appointed to the Board of Directors as Executive Director in January 2020. He has 20 years of experience in leadership and management positions with various E&P companies including: PetroKazakhstan, Exillon Energy, Ukrnafta, Sibgasoil and Petrosibir. His main areas of expertise are mergers and acquisitions and operations management. He negotiated the acquisition of several licenses in PetroKazakhstan, was responsible for the construction of the portfolio of assets of Exillon Energy, managed the divestment of the Sibgasoil oil fields in several regions of Russia and led the transformation of Petrosibir which led to improved operational performance and new oilfield discoveries. He joined the Company in May 2016 as Vice President of Business Development. In July 2018, Mr. Tetyakov took over the management of PetroNeft’s Russian subsidiaries as Managing Director. Pavel holds a Bachelor of Arts in Business Administration from Budapest University of Economics and Public Administration.

Antoine Sacca(Independent Non-executive director) (50 years old)

Anthony was appointed independent non-executive director of the Company in April 2016. He is chairman of the audit committee. He is director of Karri Tree Executive Coaching. Anthony was previously CFO of Rolf Group of Companies, one of Russia’s largest independent automotive distributors/retailers. Previously, he was a partner at PwC in Moscow. Anthony is a Fellow of the Institute of Chartered Accountants of Australia and New Zealand. He holds a Bachelor of Commerce and Administration (Honours) degree from Curtin University of Technology in Perth, Australia. He is a member of the Russian Association of Independent Directors and a Fellow Chartered Director of the Institute of Directors in the United Kingdom.

Daria Shaftelskaya – (Non-executive director) (43 years old)

Daria was appointed non-executive director in January 2020. She has 20 years of experience in oil and gas exploration and production in the West Siberian basin (Tomsk region). More recently, she worked as a financial manager in several Russian companies, including: “Finco”, “Hermes – Moscow” and “Sever”, where she mainly focused on oil and gas trading and construction. operational facilities in the Western Siberia region. She holds a degree in economics and engineering from Tomsk Technical University (1999) and a master’s degree in economics also from Tomsk Technical University (2001).

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