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 P C L (A I M:UEN ), the independent explora#on and produc#on company with opera#ons in Russia, is pleased to announce that its subsidiary undertaking, J S C Petrosakh ("Petrosakh"), has entered into an
18 month revolving credit facility (the "Loan") with the S akhalin branch of OJ S C S berbank of Russia ("S berbank") under which S berbank will provide, by way of several tranches, the sum of 300 million roubles (represen#ng 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 ac#vity will be used to progress its 2015 - 2016 drilling plan, as well as financing other Petrosakh capital expenditure. This C A P EX is expected to have less than one year's payback period and will allow Petrosakh to avoid using services provided at unreasonably high monopolis#c 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 Chief Executive Officer www.uralsenergy.com

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 Allan Tel: +44 (0) 20 7398 7702 [email protected]www.abchurch-group.com
This information is provided by RNS
The company news service from the London Stock Exchange
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