Urals Energy Plc Regulatory News (UEN)

15 Nov 2007 07:02

Urals Energy Public Company Limited15 November 2007 Urals Energy Public Company Limited ('Urals Energy' or the 'Company') $270 Million Dulisminskoye Field Development Loan Urals Energy, a leading independent exploration and production company withoperations in Russia, today announces the completion of a new project financingloan agreement to repay the Goldman Sachs facility and fund the development ofthe company's key asset at the Dulisminskoye field in Eastern Siberia. The loanwill enable Urals Energy to fully develop the field to its estimated peakproduction of 30,000 bopd by 2011 and fully unlock the fields 464 mmboe ofindependently audited 2p reserves. Sberbank, the largest bank in Russia and Central and Eastern Europe has agreedto provide a total of US$270 million to OOO NK Dulisma, a fully owned subsidiaryof the Company, under a long term debt facility. The loan is secured againstexisting shares of OOO NK Dulisma and existing Urals Energy shares pledged assecurity by two of the Company's largest shareholders and senior managers. The facility is structured in two stages. An initial US $130 million is providedunder a 6 year term loan, which will finance the full and immediate repayment ofthe principal and all other liabilities relating to the debt facility which wasarranged in January 2007 by Goldman Sachs. The remaining US $140 million, alsoto be loaned for 6 years, will be available for drawdown in April 2008 againstan agreed schedule for development of the Dulisminskoye field. The facility has been secured at comparable rates to the existing Goldman Sachsfacility and benefits the Company by way of its longer maturity and larger size.This will enable the Company to complete development and maximise the benefitsfrom production and sales during the Mineral Extraction Tax holiday periodthrough to the end of 2016. The Company is now in a stronger position to continue with its field developmentprogamme and has already delivered the first drilling rig to the field with asecond rig due in April 2008. In addition, land has been cleared for drillingpads, infield roads and areas for the Central field Processing Facilities andfield camps. Urals Energy anticipates first oil from the field to flow intoTransneft's ESPO in H1 2009. Leonid Dyachenko, Chief Executive, commented: "The signing of this important loan enables Urals to continue the development ofour first significant Eastern Siberian asset, the Dulimsnkoye field. With full,longer term funding and key approvals now in place we have a clear path towardsdeveloping the field to its full potential." 15 November 2007Enquiries: Pelham PRGavin Davis +44(0)20 7743 6677 / +44(0)7910 104 660Evgeniy Chuikov +44(0)20 3008 5506 / +44(0)7894 608 606 This information is provided by RNS The company news service from the London Stock Exchange