\n<\/p>\n
\n Receives US$22 Million Loan from Controlling Shareholder to Support Capacity Expansion Plan for Canadian Novus <\/p>\n
HONG KONG SAR –\u00a0Media \u00a0<\/p>\n In order to seize the favourable opportunity of \u00a0<\/p>\n Mr. Feng \u00a0<\/p>\n Yanchang Petroleum HK is wholly owned by
\nOutReach<\/a>\u00a0– 2 September 2021 –\u00a0Yanchang Petroleum International Limited<\/a><\/b> (“Yanchang Petroleum
\nInternational” or the “Company”; Stock Code: 00346) announced that two ordinary
\nresolutions as proposed by the Company were duly passed at the Special General
\nMeeting. Pursuant to which, Yanchang Petroleum Group (Hong Kong) Co., Limited (“Yanchang
\nPetroleum HK”) conditionally agreed to provide the loan of US$22,000,000
\n(equivalent to approximately
\nHK$170,675,000) to the Company for a term commencing from the Utilisation Date and expiring on the third anniversary of
\nthe Utilisation Date, at the interest rate of 4.8% per annum.<\/p>\n
\nrising international crude oil prices and of significantly improving market demand for petroleum in the
\nNorth American market, the Company is making an effort to optimise production
\nand operation arrangements, as well
\nas increase in the production capacity and sales of crude oil. The loan will enable the Company to obtain adequate
\nfunds to meet Novus’ financial needs for expanding
\nits production capacity, with approximately 92.6% of the loan amount
\n(representing approximately HK$158.0 million) to be used for the drilling of
\nthe 26 new oil wells and approximately 7.4% of the loan amount (representing approximately HK$12.7 million)
\nto be used as general working capital of
\nNovus.<\/p>\n
\nYinguo, Chairman of Yanchang Petroleum International<\/b>, said, “The loan
\ndemonstrates the continuous financial support provided by our controlling
\nshareholder to the Group. The Group will seize the favourable environment of
\nthe structural recovery of international oil and gas industry and propel
\nproduction and operation, business expansion, quality and efficiency
\nimprovement, introduce strategic investors and other works to lay a solid
\nfoundation for the long-term development of the Company in future, maximising
\nreturns for our shareholders.”<\/p>\n
\nShaanxi Yanchang Petroleum (Group) Co., Limited (“Yanchang Petroleum Group”),
\nholding 69.19% of the issued share capital of the Company. The principal activities of Yanchang Petroleum HK are
\ninvestment holding and trading of crude
\noil. Novus is a wholly-owned subsidiary of the Company in Canada, engaging in
\nthe business of exploration,
\nexploitation and production of oil and natural gas in Western Canada.<\/p>\n