Urals Energy Secures Funding for Dulisminskoye Field Development
Urals Energy has completed a new project financing loan agreement to repay the Goldman Sachs facility and fund the development of the company's key asset at the Dulisminskoye field in Eastern Siberia. The loan will enable Urals Energy to fully develop the field to its estimated peak production of 30,000 bopd by 2011 and fully unlock the fields 464 mmboe of independently audited 2p reserves.
Sberbank, the largest bank in Russia and Central and Eastern Europe has agreed to provide a total of US$270 million to OOO NK Dulisma, a fully owned subsidiary of the Company, under a long-term debt facility. The loan is secured against existing shares of OOO NK Dulisma and existing Urals Energy shares pledged as security by two of the Company's largest shareholders and senior managers.
The facility is structured in two stages. An initial US $130 million is provided under a 6-year term loan, which will finance the full and immediate repayment of the principal and all other liabilities relating to the debt facility, which was arranged in January 2007 by Goldman Sachs. The remaining US $140 million, also to be loaned for 6 years, will be available for drawdown in April 2008 against an agreed schedule for development of the Dulisminskoye field.
The facility has been secured at comparable rates to the existing Goldman Sachs facility and benefits the Company by way of its longer maturity and larger size. This will enable the Company to complete development and maximize the benefits from production and sales during the Mineral Extraction Tax holiday period through to the end of 2016.
The Company is now in a stronger position to continue with its field development progam and has already delivered the first drilling rig to the field with a second rig due in April 2008. In addition, land has been cleared for drilling pads, infield roads and areas for the Central field Processing Facilities and field camps. Urals Energy anticipates first oil from the field to flow into Transneft's ESPO in H1 2009.
Leonid Dyachenko, Chief Executive, commented:
"The signing of this important loan enables Urals to continue the development of our first significant Eastern Siberian asset, the Dulimsnkoye field. With full, longer term funding and key approvals now in place we have a clear path towards developing the field to its full potential."
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