TIDMUEN

RNS Number : 7110R

Urals Energy Public Company Limited

30 June 2015

 
 Press Release   30 June 2015

Urals Energy PCL

("Urals Energy" or the "Company")

Revolving finance arrangement with Sberbank

The Board of Urals Energy PCL (AIM:UEN), the independent exploration and production company with operations in Russia, is pleased to announce that its subsidiary undertaking, JSC Petrosakh ("Petrosakh"), has entered into an 18 month revolving credit facility (the "Loan") with the Sakhalin branch of OJSC Sberbank of Russia ("Sberbank") under which Sberbank will provide, by way of several tranches, the sum of 300 million roubles (representing approximately US$5.4 million at prevailing exchange rates) to Petrosakh for working capital financing.

The key terms of the Loan are that:

-- it is repayable on 29 December 2016 (the agreement also provides for early repayment of the Loan);

-- interest is chargeable at the rate of 14.28% plus 1%. The lowest rate of 14.28% is subject to Petrosakh meeting monthly turnover targets and having average cash balances in its bank account;

   --    it is secured by way of a pledge over property and cash flows from Petrosakh; and 
   --    the agreement provides for a parent company guarantee from Urals Energy.

The proceeds of the Loan will be used by the Company for working capital financing at Petrosakh. The revenues from Petrosakh's current activity will be used to progress its 2015 - 2016 drilling plan, as well as financing other Petrosakh capital expenditure. This CAPEX is expected to have less than one year's payback period and will allow Petrosakh to avoid using services provided at unreasonably high monopolistic prices by external providers and consequently optimise its operating and transportation expenses.

- Ends -

For further information, please contact:

 
 Urals Energy Public Company 
  Limited 
 Andrew Shrager, Chairman          Tel: +7 495 795 
                                              0300 
 Leonid Dyachenko, Interim     www.uralsenergy.com 
  Chief Executive Officer 
 
 
 Allenby Capital Limited 
  Nominated Adviser and Broker 
 Nick Naylor                            Tel: +44 (0) 20 
                                              3328 5656 
 Alex Price                      www.allenbycapital.com 
 
 
 Media enquiries: 
  Abchurch 
 Henry Harrison-Topham / Quincy          Tel: +44 (0) 20 
  Allan                                        7398 7702 
 uralsenergy@abchurch-group.com   www.abchurch-group.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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