RNS Number:3202S
Urals Energy Public Company Limited
15 April 2008

                      Urals Energy Public Company Limited
                       ("Urals Energy" or the "Company")

                           DULISMA FIELD DEVELOPMENT


Urals Energy, a leading independent exploration and production company with
operations in Russia, today announces an update on the development of the
Company's Dulisma field, East Siberia.

Highlights

  * Successfully completed appraisal of well #105 with higher than expected
    flow results
  * Second new drilling rig delivered to the field on schedule
  * Completed preparatory work for the Central Processing Facility and began
    tie-in pipeline construction
  * On track to commence exporting to the East Siberia to Pacific Ocean
    pipeline ("ESPO") by Q2 2009

Drilling Operations

As part of the ongoing field development plan, the Company has completed the
drill stem test of the vertical pilot hole of appraisal well #105. Following
positive flow results, well logging is being conducted to thoroughly appraise
the reservoir prior to drilling the planned horizontal well. Final completion of
well #105 and hook up to production is expected by the beginning of June. Until
such time as the Dulisma field is hooked up to ESPO, production from the field
will be evacuated by a temporary pipeline and trucks.

Rig Delivery and Field Construction

Earlier this month, Urals took delivery of its second newly built rig from
China. This was done on schedule and now allows the Company to begin production
drilling with 2 rigs for the remainder of the year. A further two rigs are
planned to be mobilized for next winter.

Significant progress has also been made with construction of the field
facilities. Preparatory work for the Central Processing Facilities has been
completed and piling for key equipment and buildings is now underway.  Right of
Way clearance and preparation for the pipeline connection to Transneft's ESPO
system is approximately half complete and all the required linepipe has been
stockpiled at each end (Dulisma field and Nadezhdinsk ESPO tie-in point), as
well as at an interim station at the river Tunguska. At present, 14 km of line
has been welded from the Dulisma end and double jointing operations have
commenced at Nadezhdinsk.

Overall, the Company has spent about $32 million of its own money to finance
Dulisma development in 2008 to date. Following the announcement of well #105's
drill stem test, the remaining $140 million tranche of the Sberbank Dulisma
development loan will now become available for drawdown, in several installments
against an agreed schedule for development of the field.

Design work on the remaining facilities, including the Central Transfer Facility
at the ESPO connection, is being finalized and tendering for construction will
take place in May with mobilization planned for early Q3 when weather conditions
are more suitable.

The Company remains on track to begin exporting oil in early Q2 2009 into the
ESPO system which reportedly is now being partially filled from Taishet and is
planned to receive line fill from the Talakan field later this year.

The Company continues to make progress on the disposal of its non-core assets
and will provide further details when appropriate.

                                                                   15 April 2008

Enquiries:
Pelham PR
Gavin Davis                              +44(0)20 7743 6677 / +44(0)7910 104 660
Evgeniy Chuikov                          +44(0)20 3008 5506 / +44(0)7894 608 606




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

DRLUSUWRWNRSAAR
Urals Energy (LSE:UEN)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Urals Energy Charts.
Urals Energy (LSE:UEN)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Urals Energy Charts.