Urals Energy: Receives Short Term $6m Loan from Petraco Ahead of Anticipated Tanker Shipment
The Board of Urals Energy PCL, the independent exploration and production company with operations in Russia, is pleased to announce that it has 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$6.0 million to the Company (the “Loan”) ahead of its anticipated August 2016 tanker shipment from Articneft.
The key terms of the Loan are that:
• it is repayable immediately following the loading of the next tanker shipment of approximately 30,000 tonnes of crude oil, scheduled for August 2016 or 30 September 2016 (whichever is earlier);
• interest is chargeable at a margin of 5% over US$ 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 of the 22,000 tonnes of crude oil presently in storage at Articneft together with 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.
