funding done dusted

ALEATOR SIGNS BINDING TERM SHEET FOR US$20m FUNDING
? Aleator secures commitment of US$20m funding for Povorotnoye
? Company Expected to resume trading on the ASX in April
The Directors of Aleator Energy Limited ("Aleator" or "the Company") are very pleased to announce that the Company has signed a binding term sheet with financier, Gres Holdings Ltd (“The Facilitator”) on 26 March 2013 for a funding amount of US$20m dollars. Under the agreement the Facilitator will provide a cash backed Bank Guarantee from a “AA rated” major bank to secure the loan funds to a subsidiary of the Company. The funds will be used to drill the much anticipated Pov 105 well in the highly prospective Povorotnoye gas and condensate field in Crimea, Ukraine. The Company will also allocate part of the funds for the provision of a pipeline and plant to process and deliver anticipated gas and condensate when the well is completed and prepared for production. This is a non-dilutionary funding instrument and therefore a good outcome for existing shareholders.
The material terms of the loan are as follows:
? A loan amount of US$20 million;
? The loan is secured against the Subsidiary controlling the Povorotnoye project;
? A loan term of 5 years from the draw date, with the first draw down planned for April 2013;
? The funds are to be drawn in tranches of $10 million;
? Conditions precedent including:
o Due Diligence by Gres on Aleator to be completed by 29 March 2013 or as otherwise agreed, noting that this condition is largely satisfied as of the date of this Term Sheet;
o All Finance and security documentation executed and registered as necessary;
o The Povorotnoye Licence and Joint Activity Agreement remain in good standing and full force prior as at the date of draw down;
o Aleator group to have net available cash of at least $1,500,000 at the date of the first draw down; and,
o Aleator to have paid all expenses and legal fees prior to the first draw down.
? An arrangement fee of 10% is payable contemporaneously upon each draw down;
? The funds are to be repaid over five years out of production revenues at an effective interest rate of 5%.
Gres Holding Ltd is an international finance company of more than 50 finance, banking and legal consultants with substantial experience in providing structured finance solutions. Gres advises that since 2008 it has arranged funding of over four billion dollars for projects in the petrochemical, food manufacturing, pharmaceutical, construction and property sectors in Egypt, United Arab Emirates, Kuwait, Cyprus and Saudi Arabia.
Final Agreements are currently being prepared and are planned to be signed in April with the funds
available approximately 20 days later. Aleator advises that it has requested the ASX to maintain its
existing trading suspension until such time as the Company has been able to satisfy the conditions
precedent to the loan including the net cash position. The Company considers that reinstatement of
its shares prior to completion of the conditions precedent would materially prejudice the Company’s
ability to satisfy the net cash position and complete the loan, thereby risking the financial viability of
the Company. Aleator plans to resume trading on the ASX as soon as its concerns regarding its
financial viability are resolved, which is expected to be in April.
Meanwhile, the Company has used the time taken to arrange funding to consolidate infrastructure
in Ukraine such as warehouse and administrative facilities in readiness for the drilling of the Pov-105
well. Construction of the access road, drill pad, and cellar has been completed and work has also
continued in taking delivery into Aleator’s warehouse of long lead items such as drill pipe, well
casing, well heads, chemicals and other critical hardware. Aleator has already invested over $7m
into the Povorotnoye project, including procurements, geological analysis, well engineering and
general infrastructure. The Directors are very pleased with the state of preparatory work and note
that the extra time has had the benefit of bridging Ukraine’s harsh winter and major holiday season,
and should now allow a seamless window to complete the well after spud.