Urals Energy gets loan from Petraco Oil Company Limited
Urals Energy PCL (AIM:UEN), the independent exploration and production company with operations in Russia, announces that it has entered into a secured short-term loan agreement with Petraco under which Petraco will advance the sum up to US$7.6 million to the Company (the “Loan”).
The key terms of the Loan are that:
· it is repayable immediately following the loading of the next tanker shipment, scheduled for mid-October 2014 or 30 November 2014 (whichever is earlier);
· interest is chargeable at the rate of 5% over LIBOR until the date of the bill of lading of the tanker at which point it reduces to 2% over LIBOR; and
· it is included in Petraco’s existing security over CJSC Arcticneft, further details of which appear in the Company’s announcement dated 12 April 2010.
The proceeds of the Loan will be used by the Company to both progress its 2014 drilling plan and working capital financing.