Urals Energy Public Company Limited South Dagi drilling update (8529R)
June 19 2018 - 4:38AM
UK Regulatory
TIDMUEN
RNS Number : 8529R
Urals Energy Public Company Limited
19 June 2018
Dissemination of a Regulatory Announcement
that contains inside information according
to REGULATION (EU) No 596/2014 (MAR).
19 June 2018
Urals Energy Public Company Limited
("Urals Energy", the "Company" or the "Group")
South Dagi drilling update
The Board of Urals Energy (AIM:UEN), the independent exploration
and production company with operations in Russia, is pleased to
provide an update on its drilling operations at the South Dagi
licence area on Sakhalin Island.
South Dagi licence on Sakhalin Island.
The Company's initial South Dagi development programme consists
of the drilling of four new wells (Well 1, Well 2, Well 3 and Well
5), which are being drilled using the rig purchased by the Company
in 2017 from Jereh Group. The Company's target for the South Dagi
development programme is to achieve aggregate production in excess
of 1,000 bbls/day, which will help in offsetting the decline in
production at Petrosak and thus sustain production at the Company's
refinery on Sakhalin Island.
The Jereh rig has experienced a number of problems with its
mobilisation and operational set up which, together with adverse
weather conditions earlier this year, have delayed completion of
the first new well at South Dagi (Well 1). The Board anticipates
that Well 1 will now be completed by the end of July 2018.
However, in line with the Company's previous announcements, the
Board has decided to start a work-over programme of existing wells
at South Dagi using a smaller capacity workover rig. The Company
has completed and tested a workover of an existing well located on
the South Dagi licence area (Well 7). Well 7 flowed liquids to the
surface which have been delivered to the Company's refinery for
separation of oil and water. During well tests, the daily oil
volumes achieved from Well 7 were approximately 225 bbls/day. A
separator is to be set up in the licence area, so that oil/water
separation can be carried out at the field. Well 7 was drilled to a
depth of approximately 1,250 metres. Its perforation interval is
1,170 to 1,190 metres, with a pay zone thickness of eight metres.
The well is formed from sand stone (of the Dagi formation
type).
The smaller capacity workover rig has been moved to the second
workover well (Well 4), which is likely to be a gas well, which
will be used to provide power for operations.
As announced on 4 May 2018, in the summary of the assessment of
the Company's Remaining Reserves and Resources Potential by
Blackwatch Petroleum Services, the Proven Reserves (1P) of South
Dagi have been estimated at 2.9 million bbls, with Proven and
Probable Reserves (2P) estimated at 20.9 million bbls and Proven,
Probable and Possible Reserves (3P) being estimated at 38.3 million
bbls, of which the Company's share is 97.16%.
The Company will review the results of the initial South Dagi
development programme and then make a decision on further
development operations in the field.
First 2018 Shipment from Kolguev Island.
Tanker loading is scheduled for the first 10 days of July 2018.
The Company expects to ship 20,000 tons, equivalent to 158,000
bbls, of special light crude.
Final results for the year ended 31 December 2017
The Company expects to publish its final results for the year
ended 31 December 2017 before the end of this month.
Andrew Shrager, Chairman of Urals Energy, commented:
"Despite the delays with Well 1, the results of the first well
workover on the South Dagi licence are encouraging, in terms of
achieving a level of production that is consistent with our target
for the initial development programme."
Mr Vasily Nikoluk, Urals Energy's Chief Geologist, a graduate of
the Ivano Frankivsk University and the former head of the geology
department at Gazpromneft, 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
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Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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