Geoilbent To Develop South Tarasovskoye Field During 2003
Harvest Natural Resources' Russian subsidiary, Geoilbent, has expanded its current credit facility with a new revolving $50 million credit facility with the European Bank for Reconstruction and Development (EBRD).
Proceeds from the original EBRD loan, secured in 1996, were used to develop a portion of the oil and condensate reserves of the North Gubkinskoye Field. The outstanding balance of $22 million has been rolled into the new loan facility. The loan becomes effective upon satisfaction of certain conditions, including receipt of licenses from the Central Bank of Russia.
Dr. Peter J. Hill, Harvest's President and Chief Executive Officer said, "This new facility gives Geoilbent greater financial flexibility to pursue the South Tarasovskoye oil development in 2003. In addition, this facility leaves Geoilbent with sufficient free cash to commence the front-end engineering and design for the North Gubkinskoye gas and natural gas liquids (NGL) separation plant. It also provides time to put in place permanent financing for construction of the North Gubkinskoye gas plant and long-term gas, NGLs and condensate sales contracts for an estimated mid-2004 commencement of sales."