TIDMUEN
RNS Number : 4252W
Urals Energy Public Company Limited
14 November 2017
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
14 November 2017
Urals Energy Public Company Limited
("Urals Energy", the "Company" or the "Group")
Operational updates
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.
Tanker shipment update
The price per barrel for the tanker shipment announced on 31
October 2017 has now been confirmed as US$62.15 per barrel. This
pricing is based on the arithmetic average of the quotations for
Brent DTD published in "Platts Crude Oil Marketwire" for the five
days after the date of the bill of lading.
After taking into account all duties and taxes, transport costs
and demurrage, the net proceeds from the shipment are expected to
be approximately US$8.5 million, representing a net back of
US$45.08 per barrel. This represents an improvement of
approximately US$14.18 per barrel, when compared with the net
receipts from our first tanker export in June of this year, which
was affected by the fall at that time in the international oil
price, as noted in our announcement on 28 September 2017.
After repayment from the proceeds of the tanker payment of the
Petraco pre-export short term loan finance arrangement, announced
on 7 September 2017, we anticipate that the Company's net debt will
be reduced from US$12.3 million as at the end of June 2017 to
US$3.8 million.
Corporate website updates
The Company will relaunch the Shareholder questions and answers
(Q&A) section on its website in the coming days. Shareholders
are encouraged to post any questions that they may have through the
website and, as far as is permitted by the legal and regulatory
framework which applies to the Company, the Board will answer these
on a regular basis.
The website's new Q&A section will also include a commentary
from the Chairman on the Board's view of the Company's strengths
and investment case, as well as an outline of the Board's key
strategic plans for 2018, which is reproduced below.
Our plans for 2018 are as follows:
Kolguev Island:
- continue work overs and the installation of jack pumps with
the aim of keeping production stable at approximately 1,000
bbls/day
- assessment of a new programme of deviated wells and or
fracking to increase production significantly from existing
horizons, and in the case of success;
- apply for additional licences on the Island, in order to take
advantage of our unique position as the only operator with
processing, tank farm availability and its own tanker terminals
Sakhalin Island:
- continue well work overs at Petrosakh, thus seeking to
maintain production at approximately 1,200 bbls/day
- upgrade refinery equipment to increase the yield and quality
of products
- obtain a marine terminal licence for the sale of bunker fuel
to local ship operators
- deploy newly acquired rig to drill three wells at our new
South Dagi licence
- workover two existing wells on South Dagi
Komi Republic:
- additional seismic interpretation for the two oil fields held
by RK Oil and BVN Oil
- following the cancelation of the first drilling contract at RK
Oil, seek a partnership, ideally with a major oil service company
to manage the development of the large proven and probable
reserves, potentially coordinated with adjacent oil fields that
have necessary infrastructure and transit connections
New investor presentation
The Company will also post a new Investor Presentation on its
website in the coming days.
Andrew Shrager, Chairman of Urals, commented:
"We have been more fortunate with the price received for our oil
shipped by the second tanker, and this has put the Company in a
strong financial position. The fact that we now have increased
production on Kolguev Island has allowed us to make these two
shipments per year, rather than one, and has benefitted our cash
flow considerably. It has been efficient, however, to continue to
have the financial support of Petraco with a short-term pre-export
loan finance facility ahead of each shipment, as it helps us to
meet taxes and duties that have to be paid prior to the shipment
being made, and releases our working capital for other operations.
Shareholders are reminded that we will be paying our maiden
dividend on 1 December 2017.
"The new Investor Presentation will include analysis prepared by
CMA, an independent research consultancy retained by the Company,
that reflects the relative performance of the Company, compared
with oil and gas companies operating in Russia, the Former Soviet
Union and the AIM market, which we hope shareholders will find
useful."
- 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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