TIDMUEN

RNS Number : 0643B

Urals Energy Public Company Limited

30 March 2017

 
                             Dissemination of a Regulatory Announcement that contains 
                              inside information according to REGULATION (EU) No 
                              596/2014 (MAR).

30 March 2017

Urals Energy Public Company Limited

("Urals Energy", the "Company" or the "Group")

Operational update

The Board of Urals Energy (AIM:UEN), the independent exploration and production company with operations in Russia, is pleased to provide the following operational update:

Kolguev Island

Oil production in the first quarter of 2017 has been averaging approximately 1,110 bbls/day, compared with an average of approximately 1,050 bbls/day in the last quarter of 2016, representing an increase of 5.7%, due to the benefits of well work overs. Further work overs are planned on the well stock acquired via the acquisition of Artic Oil in September of last year.

A first tanker shipment is scheduled for late June 2017, with a second in October 2017. Pre-export finance is being negotiated to cover pre-export taxes and duties. The total volume of commercial crude produced on Kolguev Island that is currently held in stock tanks is approximately 235,000 barrels.

Sakhalin Island

The Company is at the final stage of negotiation in respect of a rig leasing contract with Jereh Group, a Chinese company, to be deployed to drill our first well at South Dagi. As mobilisation and transit will not be completed until June or July 2017, the Board has decided to use the Group's drilling team, who will be responsible for the South Dagi well, to drill one well with our own rig at Petrosakh, with the option of a second. This represents a change in the timing of Board's drilling plan for Sakhalin.

Production at Petrosakh continues to average approximately 1,135 bbl/day, all of which is processed into products at our own refinery and sold on the Island. Local product prices have remained strong.

Komi Republic

The planned well for RK-Oil will be spudded shortly, which represents a delay in the Board's original plan. This delay has predominantly been due to the early melting of nearby ice roads. However, all equipment is in place and final preparations are being made. A further announcement in respect of this well will be made in due course.

Competent Person's Report

The Company is engaging Blackwatch Petroleum Services to prepare a Competent Person's Report on its portfolio of licences. It is expected that this will be completed in June 2017.

- Ends -

For further information, please contact:

 
 Urals Energy Public Company Limited 
 Andrew Shrager, Chairman              Tel: +7 495 795 0300 
  Leonid Dyachenko, Chief Executive 
  Officer 
 Sergey Uzornikov, Chief Financial      www.uralsenergy.com 
  Officer 
 
 
 Allenby Capital Limited 
  Nominated Adviser and Broker 
 Nick Naylor / Alex Brearley       Tel: +44 (0) 20 3328 
                                                   5656 
                                 www.allenbycapital.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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