Pennpetro Energy (LSE:PPP) said it is finalising documentation for CLN3 with RMD Group to provide an additional £325,000 of working capital, with a conversion price set at 2.2p and interest at 6% (initially charged at 12% until shareholder resolutions approve share issuance).
The company noted that RMD, whose owner Grand Chief Ronald Derrickson joined the board last week, has previously provided CLN1 and CLN2 but remains unable to convert those instruments because the required resolutions proposed at the general meeting on 23 December 2025 were not passed.
Pennpetro said the lease owners’ legal representative has provided renewal terms for the lapsed Chalk Talk A-1H lease that include payment of any unpaid historic royalties, that board members met the lessors in Texas and early checks suggest roughly 30% of legacy royalties may already have been paid.
The company confirmed RMD has committed to fund the full resumption of operations at Chalk Talk A-1H, including clearing legacy issues, subject to mutually acceptable terms and ongoing negotiations overseen by CEO Mavriky Kalugin.
On Limnytska, the board said the 15 October 2025 Heads of Agreement did not bind the parties, that a large RTO is not an immediate priority while the company returns to regulatory compliance, and that management is now exploring a smaller minority acquisition or farm-in with optionality to increase participation later, which would still likely require a prospectus and shareholder approval.
The company appointed SPARK Advisory Partners as financial adviser and Main Market sponsor and said SPARK is liaising with the FCA to resolve legacy suitability issues as part of the path to re‑admission to trading.
“We continue to make good progress in returning the Company to trading,” said Richard Spinks, Executive Co‑Chairman, and Pennpetro will host a shareholder webinar on 27 April to take questions on these matters.
