Urals Energy Share Discussion Threads

[lalria] 19/6/2018 11:26

10% day increase until shipment rns will do me fine

[tone the bone1] 19/6/2018 11:21

An upbeat update Imo.....And more news to come .Nice !

[lalria] 19/6/2018 11:17

I know - its getting a move on and hopefully we have exciting times ahead. Should see a run to 1.20 very quickly I think hhehehehhee

[martyn9] 19/6/2018 11:16

Not had chance to digest all the news yet,but on the face of it all looking positive.Why people sell at this stage of the game is crackers imo.

[lalria] 19/6/2018 11:12

About time this was let go. Good news and some chunky buys now coming in looks like we may get good volume today

[croasdalelfc] 19/6/2018 11:07

June results and dividend - next two weeksJuly loading of tanker and receipts. 3/4 weeksJuly drilling result 5-6 weeks July workover results Well 4 - gas well 5-6 weeks

[lalria] 19/6/2018 10:55

looking good mate here - New due very soon on many fronts and hopefully they will all drive the price up and up

[darren81] 19/6/2018 10:53

225 bopd not too shabby for a work over well!! That’s much more than I anticipated and bodes very well indeed for future drills!!

To quantify, that is 6.2 million in extra revenue at current price of $75...not including the extra on top we get from refining!!

[lalria] 19/6/2018 10:48

News out - whilst further delays we do have workovers being done and producing so sounds good. Oil loading and shipment also in first 10 days of July looks good to me. Next 30 days looks to be good

[gaffer73] 19/6/2018 09:26

Darren, no one can deny your commitment that's for sure. Just hope you don't get stung, it's been an awfully long time since the spud.

[chavitravi2] 15/6/2018 16:30

As I undersand the tax change the upgrading of the refinery to get more yeild and quality can be offset against tax and maybe the expenses for the marine terminal.
Anyone know for sure?

[darren81] 15/6/2018 16:25

Added another ~1400 earlier as well as a similar amount a couple of days ago....this time next week rodders...

[darren81] 15/6/2018 10:47

They stated very clearly in November last year what their aims for the year were - they have another 6 months to deliver on them...

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

[martyn9] 15/6/2018 10:08

Darren impossible to predict the outcome but your latter forecast brilliant!! the only guarantee we have is the oil shipments and revenue from those,and as we all know makes a mockery of the mcap atm.

[darren81] 15/6/2018 09:55

Yeah, always seems to be last minute which has me worried that drill results aren't great and they are trying to rush through a JV so they can announce at the same time.

Let's wait and see - not long to go either way!

[martyn9] 15/6/2018 09:18

Morning darren, uen always take matters to the very last minute, bloody frustrating as flip a coin as to drill outcome good/bad.

[darren81] 15/6/2018 09:08

10 days max now until the results are due, as well as news of drilling results - they really are taking this to the wire!!

[darren81] 14/6/2018 13:28

A forward looking statement on the impact these changes will have on the company really needs to be included by the BODs in the year end accounts, due in the next couple of weeks.

This could have a big effect on the P&L of the company, it shouldn’t be left to PIs to speculate on how this will affect the company, they need to let investors know about this!

[djmoggy] 14/6/2018 10:11

Even though the above news paints a bleak picture for Russian oil companies - it is actually positive news for small producers like Urals.

1. Phasing out of export duty and MET and replacement with Profit Based tax - this is positive for Urals. The company can divert more cash to expanding it's production (exploration/development drilling and workovers) rather then paying these taxes up-front. This reform will have a negative impact on the large players in Russia whose revenue/profit is from downstream operations.

2. Ural's oil at both Arcticneft and Petrosakh is high/premium quality light oil. If Ural's decide at some point to upgrade their refining facilities then they will benefit from excise tax refunds. (Although this will be somewhat offset by a temporary raising of MET pre-phase out).

3. Ural's will be unaffected by the governments ability to quickly raise export duties on oil products - currently only Crude Oil (not refined products) are exported from Arcticneft. Petrosakh sells all refined products to the local market.

[djmoggy] 14/6/2018 09:58

A major tax overhaul in Russia’s oil industry is about to start pressuring the earnings of major oil companies.

Refiners will be hit hardest as the overhaul will increase the tax burden on downstream operations while the upstream sector will see taxes shift from production-based to profit-based.

Last week, the Finance and Energy Ministries announced that they had agreed with oil companies to begin phasing out oil export duties by five percent annually over the next six years, from 30 percent now to zero in 2023. The producers are happy about this: the duty—along with a so-called mineral resource tax based on production size—will be replaced by a profit-based tax that, oil companies say, will stimulate investments in production expansion.

Yet their happiness is not all-encompassing. S&P Platts writes that the phase-out of the oil export duty actually seeks to reduce state support for the local refining industry, which has - over the last ten years - exceeded industry spending on refinery modernization by five times. This success is largely due to the difference in oil export duties for crude oil and oil products.

Currently, oil product exports are taxed on the basis of a percentage of the crude oil export duty, which is tied to the price of oil. Changing that will save the government some $16 billion (1 trillion rubles) annually from subsidies for refiners. The change will include not only removing the crude export duty, but also next year introducing a negative excise duty on crude oil for Russian refineries, a government source told S&P Platts.

The aim of the government is to stimulate refinery upgrades and higher light oil product output. Back in 2015, Moscow slashed the export duties for crude and light oil products while raising the ones for heavy oil products.

The aim of the government is to stimulate refinery upgrades and higher light oil product output. Back in 2015, Moscow slashed the export duties for crude and light oil products while raising the ones for heavy oil products.

Now, the Finance Ministry has proposed excise refunding to those refiners who invest in upgrading their processing facilities. Even with the refunds, however, these companies will likely see a higher tax burden overall as reform plans also include a temporary increase in the mineral resources tax on crude oil and gas condensate, to be introduced next year.

In another blow to refiners’ bottom lines, the government recently announced a plan for a mechanism that will make it possible to quickly raise the export duties on oil products should crude oil prices jump, in order to make sure the domestic market remains sufficiently supplied.

In addition to a well-supplied domestic market, the mechanism, if approved by parliament, will bring in an additional US$1.93 billion (120 billion rubles) to the 2018 budget. This additional revenue would come at the expense of part of the diesel export earnings of Gazprom Neft, Rosneft, and Surgutneftegaz, among others.

The wider tax reform, including the switch to a profit-based tax in the upstream sector, could generate a total US$58 billion (3.6 trillion rubles) over the six-year period of the export duty phase-out, based on an average price per barrel of oil of US$50 and based on the current ruble exchange rate. Since the refiners that will suffer the negative consequences of the reform are also the biggest upstream players in Russia, chances are that things will largely even out at the end of the day.

from

hxxps://oilprice.com/Energy/Crude-Oil/Russias-Oil-Sector-Is-Facing-A-Massive-Tax-Overhaul.html

[amargosa] 14/6/2018 08:23

It matters what the price of oil is during a 5-day period after tanker loading; if the oil price spikes higher during this period UEN does well, if it drops dramatically then UEN's netback for the amount of exported oil can be practically wiped out- the Company does not hedge against this outcome, preferring the equal odds of a rising price. Probably.

[spandy83] 14/6/2018 07:42

The oil is shipping at some point in July from my understanding. I wouldn't expect it within the next two weeks.. not that it especially matters