Sevan Restructures FPSO Bank Facility

Sevan has reached a mutual agreement with GIEK/Eksportfinans, GE and Deutsche Bank AG, London Branch ("Deutsche Bank"), which provides Sevan with the required flexibility to find a new contract for FPSO Sevan Voyageur, after the expiry of the existing charter contract.

Under the agreement, Sevan has provided permission to the restructuring of US $45 million of the Senior Secured term loan, subject to conditions precedent, creating a Secured Bond yielding 11% per annum that is expected to close prior to May 2010. During the initial 24 months, the Senior Secured term loan and the new Secured Bond will be repaid pro rata by the total amount of US $3.15 million annually.

FPSO Sevan Voyageur has been operating for Premier Oil & Gas UK Ltd on the Shelley field in the central UK North Sea since August 2009. Decommissioning of the field is scheduled for third quarter of 2010 and the unit is currently marketed to potential clients.