8th Feb 2006 09:31
Dragon Oil PLC08 February 2006 8th February 2006 PRESS RELEASE DRAGON OIL PLC ("Dragon" or the "Company") EBRD EARLY LOAN REPAYMENT Dragon is pleased to announce that it has repaid, early and in full, theoutstanding loan, interest and expenses to the European Bank for Reconstructionand Development ("EBRD"). The loan facility of upto $60 million, was signed on 1st November 2000 andrequired full repayment by 5th February 2008. During the course of the loanfacility, Dragon availed of a total of $38.3 million and has repaid, early andin full, the outstanding principal amount of US$27.6 million interest ofUS$1.023 million and minor expenses of US$13,721. The loan facility, availability and drawdown was determined by semi-annualreviews which took into account Dragon's drilling programme, actual productionand capital expenditure. Dragon's increased cash balances have enabled the Dragon Board to conclude thatit is in the best interests of Dragon to repay the EBRD loan and thereby free upthe Dragon Group's assets. The loan was secured in favour of EBRD by the pledge of shares in the followingsubsidiaries of Dragon Oil Plc, namely Dragon (Holdings) Limited, Tampimex OilTrading Limited, D&M Drilling Limited and Dragon Oil (Turkmenistan) Limited.These subsidiaries own substantially all of the assets of the Dragon Oil PlcGroup. The Chairman, Hussain M. Sultan, commented: "We have enjoyed a good banking relationship with the EBRD over the past 6years, and wish to thank them for their support in our Turkmenistan project andthe field development plan. Now that Dragon has achieved a healthy cashposition, the time is opportune for us to repay, not just early, but theentirety of the EBRD loan and therefore release from security the Company'sassets. This is a positive step forward in our plans to develop the ChelekenContract Area and grow our production." Ends Enquiries Citigate Dewe Rogerson (+44 20 7638 9571)Media enquiries: Martin Jackson / George CazenoveAnalyst enquiries: Nina Soon This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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