The loans were issued as part of the Taas acquisition in 2009.

The loans were used to pay organisation fees for a $600m project finance loan facility provided by Savings Bank of Russian Federation for the development of the SRB field, financing of interest payments and repayment of third party loans at Taas.

The loans bear interest of 12%, mature in February 2015 and are unsecured.

Urals Energy has assigned the full benefit of the loans (together with all accrued interest) to Nagelfar for $26m.

The value of the principal of the loan is $28m and its book value for the year ended 31 December 2010 was $37.7m (including the accrual of relevant interest).

At 2:13pm: (LON:UEN) share price was +2.75p at 9.25p

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