(MENAFN- ProactiveInvestors - Australia) Aleator Energy (ASX: AWD) has increased its interim secured converting loan to fund drilling of the Povorotnoye 105 well in Ukraine by $150,000 to $775,000.
The loan is secured against the assets of the company with a term of 90 days and a fee of 20%.
It provides working capital while conditions precedent to the previously announced US$20 million loan funding are satisfied.
Calculations of well productivity from historic wells suggest that Povorotnoye 105 could have an initial gas production rate that easily exceeds 20 million cubic feet of gas per day, equating to a revenue flow of A$4 million per month to Aleator.
Should this well be successful, commercial production from the field could start in mid-2013, possibly through a gas plant about 10 kilometres away with spare capacity and connections to a nearby gas main line.
The US$20 million loan from Gres Holdings will be used for drilling Povorotnoye 105 as well as a pipeline and plant to process and deliver anticipated gas and condensate when the well is completed and prepared for production. Â
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