Urals Energy Public Company Limited Operational update (0346O)
August 15 2017 - 4:28AM
UK Regulatory
TIDMUEN
RNS Number : 0346O
Urals Energy Public Company Limited
15 August 2017
Dissemination of a Regulatory Announcement that contains
inside information according to REGULATION (EU) No 596/2014
(MAR).
15 August 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:
Petrosakh
Following the announcement on 20 July 2017, testing of well 130
(which will be known as well 102 in future updates) has been
completed. The well encountered the pilling rock formation at 1,787
metres, and the production liner is at a depth of between 1,534 and
1,720 metres. The location of the well is at an area of the
reservoir where porosity is relatively low compared with other
areas of the reservoir. The well's flow has averaged between
approximately 22.5 and 37.5 barrels of oil per day. The Board
anticipates that the well will flow for three years and will then
be used as a water injector to maintain pressure in the
reservoir.
The new rig that has been acquired for South Dagi licence area
has arrived on the Island of Sakhalin and is undergoing customs
clearances. Drilling locations for this rig have been determined.
The Board anticipates that the first well at South Dagi will be
spudded by the end of October, subject to no delays in completing
all necessary regulatory approvals by the end of September 2017.
The drilling team will move to the area in September 2017.
Komi Republic
Negotiations with our current contractor for our first
exploratory well on RK Oil field continue. As announced on 20 July
2017, the Company has given notice of termination of the drilling
contract because of poor performance and is considering its options
in respect of the current contractor's performance. The Company is
in discussions with new drilling contractors and expects to spud a
new well at the Komi site in December 2017.
Reserve Report
Following the announcement on 20 July 2017, the representative
of Blackwatch Petroleum Services, the Competent Person firm engaged
by the Company to carry out an update of the Company's reserves has
arrived in Moscow and will start work on the Competent Person's
Report on the Company's portfolio of licences this week.
Share Premium Reduction Process
The reduction of the Company's share premium account from
US$656,167,589 to nil, by writing off accumulated losses of the
Company equivalent to the reduction amount of the share premium
account (the "Share Premium Reduction") has completed.
Following a Court order sanctioning the Share Premium Reduction,
the Company has received confirmation that the Share Premium
Reduction has been registered in the public records of the
Registrar of Companies in Cyprus, which represents the completion
of the Share Premium Reduction process. Following the completion of
the Share Premium Reduction, it is now possible for the Company to
lawfully reward shareholders with dividends.
As indicated in Urals Energy's results for the year ended 31
December 2016, it is the Company's intention to seek further
shareholder approval for a dividend payment to shareholders. It is
currently anticipated that shareholder approval will be sought at
the Company's Annual General Meeting, later this year. Subject to
the approval of shareholders, the Board proposes that the maiden
dividend should be approximately 6.2 US cents per share, equivalent
to approximately 10% of the Group's 2016 EBITDA, costing
approximately US$780,000. Further announcements will be made as
appropriate.
Qualified Person Statement
Dr Svyatoslav Bilibin, (Dr.Sci.Tech. and Corresponding Member of
the Russian Academy of Natural Sciences), an independent adviser to
Urals Energy, who meets the criteria of a qualified person under
the AIM Guidance Note for Mining, Oil and Gas Companies, has
reviewed and approved the technical information contained within
this announcement.
- Ends -
For further information, please contact:
Urals Energy Public Company
Limited
Andrew Shrager, Chairman Tel: +7 495 795
Leonid Dyachenko, Chief 0300
Executive Officer
Sergey Uzornikov, Chief www.uralsenergy.com
Financial 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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