Acquisition

RNS Number:9707J
Urals Energy Public Company Limited
05 October 2006

                      Urals Energy Public Company Limited

            Completion of Acquisition of Three Companies from Lukoil

Summary:

   * Completion of a bolt-on acquisition from LUKoil

   * Principal licence, acquired for US$1.5 million in cash, is credited with
     approximately 25 million barrels of C1-C2 reserves and is currently in
     production

   * DeGolyer and MacNaughton to re-evaluate reserves and company to institute
     production enhancement programme

   * Eighth acquisition

Urals Energy ("Urals" or the "Company") (LSE:UEN), a leading independent
exploration and production company with operations in Russia and current
production of 10,100 bopd, announces the completion of its third principal
acquisition since its IPO of three assets, OOO Voivozhneft, OOO Nizhneomrynskaya
Neft and OOO Verkhneomrynshaya Neft, from LUKoil, all located in the Komi
Republic, west of the Urals mountains.

The primary producing asset, OOO Nizhnyomrynskaya Neft, is a Russian limited
liability company, acquired for US$1.5 million in cash and is located close to
the Company's existing producing properties in the region.

OOO Nizhnyomrynskaya Neft owns a subsoil licence which has been in production
for over 20 years. According to the Russian State reserves body, the licence of
this asset is credited with approximately 25 million barrels of C1-C2 reserves.
The licence is currently producing approximately 350 bopd.  Reserves and
production of OOO Voivozhneft and OOO Verkhneomrynskaya Neft are not
significant.

As planned, the Company will now initiate a basic program of workovers to
replace pumps and re-start production from several older wells, as well as
employ DeGolyer and MacNaughton to re-evaluate the reserves. Based on the
Company's experience, the re-evaluation of the reserves normally results in a
lower quantity of reportable recoverable reserves than is recorded by the
Russian State reserves body.

William R. Thomas, Chief Executive Officer, commented:

"This is another example of our ability to make strategic acquisitions at
attractive prices and we continue to make progress in our quest to build Urals
Energy into a major independent player in Russia and the CIS. Our strategy of
acquiring producing and non-producing assets near existing fields with
development and exploration potential will enable the company to continue the
fast track growth achieved to date."


                                                                  5 October 2006


Enquiries
Pelham PR
James Henderson                                                    020 7743 6673
Gavin Davis                                                        020 7743 6677



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