Arrangement of Export Financing
January 05 2005 - 2:01AM
UK Regulatory
5 January 2005
NELSON RESOURCES LIMITED CONCLUDES
U.S.$40 MILLION EXPORT FINANCING
Nelson Resources Limited ("Nelson" or the "Company", TSX / AIM: NLG), a leading
independent oil exploration and production company operating in Kazakhstan,
today announces that it has arranged on behalf of its subsidiary, Nelson
Petroleum Buzachi B.V. ("NPB"), a four and a half year financing agreement in
the form of a structured oil pre-export facility with a principal amount of up
to U.S.$40 million through the Commodity Structured Finance Group of BNP Paribas
(Suisse) S.A. Proceeds of this financing will be used in part to refinance the
previously announced NPB oil prepayment facility arranged in June 2004.
The financing is structured as a U.S.$40 million revolving credit line available
for two years. Thereafter, the facility converts to an amortising term loan,
with regular repayments being made until the final repayment date 54 months
after the initial advance. Repayments are secured by offtake agreements under
which NPB will sell crude oil from the North Buzachi field to one or several
offtakers. Interest on the facility will be paid on a monthly basis, at a rate
of one month LIBOR plus a 3.25% per annum margin, increasing to a 4.25% per
annum margin after 12 months. Nelson serves as financial guarantor of the
facility.
Nick Zana, Nelson's Chief Executive Officer, commented, "The North Buzachi field
is proving to be an excellent asset and I am encouraged by its future prospects.
The arrangement of this financing facility will support the ambitious
development plans we have for the field."
For further information, please contact:
----------------------------------------
Fred Hodder, CFO Tel: 020 7495 8908
Nelson Resources Limited fhodder@nelsonresources.co.uk
S.A.(Al) Sehsuvaroglu, Senior Vice President Tel: +7 3272 58 25 81/2/3
Nelson Resources Limited sas@nelsonresources.com
Investor Relations:
Ann-marie Wilkinson / Nick Lambert Tel: 020 7861 3232
Bell Pottinger Corporate & Financial (London)
Notes
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Nelson Resources Limited is an oil exploration and production company with
operations in the Republic of Kazakhstan. The Company established its presence
in the Kazakhstan oil sector in 2000 and its management team, comprising both
international and Kazakh executives, has extensive experience of the Kazakh
operating and regulatory environment. The Company owns 50% of Kazakhoil Aktobe
LLP (KOA), a 50/50 joint venture between Nelson and Kazmunaigas, the national
oil company of Kazakhstan, which is developing the Alibekmola and Kozhasai
fields. The Company owns a 50% participatory interest in the North Buzachi oil
field located in western Kazakhstan (50% Nelson, 50% CNPC International
(Buzachi) Inc.). In May 2004, Nelson purchased 60% of Chaparral Resources Inc.,
which has a 60% interest in the joint stock company Karakudukmunai, operator of
the Karakuduk field. The remaining 40% of this field is currently in the process
of being acquired by Nelson. The Company also holds an option to acquire a
minimum 25% participatory interest in two Caspian Sea offshore blocks, Zhambai
South and South Zaburunye. The Company maintains its operational office in
Almaty, Kazakhstan, which oversees the field joint ventures in western
Kazakhstan. Nelson and its affiliated companies employ approximately 800
people. Common shares of Nelson are listed on the Toronto Stock Exchange and
London's Alternative Investment Market under the symbol NLG.
END
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