News Column

Urals Energy PCL - Loan from Petraco Oil Company Limited and Notice of Results

June 10, 2014



ENP Newswire - 10 June 2014

Release date- 06062014 - 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 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.

Notice of Results

Urals will announce its final results for the year ended 31 December 2013 on 27 June 2014.

Related Party Transaction

In view of the fact that Ingeborg Srenger is a director of both Urals and Petraco and the control she exercises over Petraco, the Loan is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Company's directors (with the exception of Ingeborg Srenger), having consulted with the Company's nominated adviser, Allenby Capital Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Contact:

Urals Energy Public Company Limited

Alexei Maximov

Chief Executive Officer

Sergey Uzornikov

Chief Financial Officer

Tel: +7 495 795 0300

www.uralsenergy.com

Allenby Capital Limited

Nick Naylor

Alex Price

Tel: +44 (0) 20 3328 5656

www.allenbycapital.com


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Source: ENP Newswire


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