24th Dec 2008 07:00
Urals Energy Public Company Limited
('Urals Energy' or the 'Company')
24 December 2008
Update on Financing and Other Discussions
The Company remains fully engaged with Sberbank in a constructive dialogue regarding its loan facilities. While it remains the case that no formal extension has been granted, Sberbank continues to negotiate with the Company and has not indicated an intention to put the Company into default. Given the extended nature of these negotiations, in the context of continuing construction and drilling operations, particularly in the Dulisma field, the Company's day-to-day liquidity position has become increasingly constrained. At the same time, the deterioration in financing markets and the significant fall in the oil price have delayed the Company's efforts to dispose of some of its non-core assets.
As a result of these factors, and while the Company remains in dialogue regarding various strategic options, including the possibility of an offer being made for the Company, the Company is progressing negotiations with a third party for a short term working capital loan facility in order to allow the Company to continue to operate to the extent that its strategic discussions continue beyond late January, 2009.
Further announcements will be made in due course.
Enquiries:
Pelham PR
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Mark Antelme
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+44(0)20 3178 6242
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Evgeniy Chuikov
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+44(0)20 3008 5506
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Related Shares:
Urals Energy Plc