Urals Energy: Agrees Short Term $3m USD Loan with Petraco Oil Company
The Board of Urals Energy, the independent exploration and production company with operations in Russia, is pleased to provide the following operational update:
Pre-export short term loan finance arrangement
On 7 September 2017, the Company entered into a pre-export short term loan finance arrangement with Petraco Oil Company Limited (“Petraco”) under which Petraco will advance the sum of US$3.0 million to the Company (the “Loan”) ahead of the anticipated October 2017 tanker shipment from Kolguev Island.
The key terms of the Loan are that:
• it is repayable immediately following the loading of a tanker shipment of approximately 25,000 tonnes of crude oil, which is currently scheduled for October/November 2017;
• interest is chargeable at a margin of 5% over US$ LIBOR up to the date of the bill of lading of the tanker, after which it reduces to 2% over US$ LIBOR; and
• it is secured by way of a pledge by Urals Energy over the shares that Urals Energy holds in JSC Articneft.
The proceeds of the Loan will be used by the Company for general working capital financing.
