First Petraco Installment and Operational Update

 

TIDMUEN 
 
RNS Number : 4422W 
Urals Energy Public Company Limited 
18 November 2010 
 

18 November 2010 
 
                      Urals Energy Public Company Limited 
                        ("Urals Energy" or the "Company") 
 
         Settlement of First Petraco Installment and Operational Update 
Urals Energy (LSE: UEN), an independent exploration and production company with 
operations in Russia, announces that it has settled the first US$3 million 
tranche due to Petraco Oil Company ("Petraco"),  in accordance with the 
Restructuring Agreement dated 12 April 2010.  The settlement was made by means 
of an off-set of Petraco debt to the Company for the crude oil delivered in 
October 2010 from the Company's Arcticneft operations. 
Drilling results 
As was reported on 10 November 2010, the Company has completed drilling its 
first side track well 35b at Petrosakh.  The well was perforated in the interval 
from 1,470 meters to 1,535 meters.  Tubing was lowered to a depth of 1,478 
meters, where material accumulated in the hole as a result of the 
lost-circulation encountered while drilling through the pay zone prevented the 
tubing from being run further down the hole. 
The board is pleased to announce that the well is currently flowing naturally at 
a rate of 20 tons per day (152 BOPD) with an 8% water cut on a 19mm choke.  The 
well has produced for six days and is still flowing back drilling fluid and 
cuttings, as a result of the lost circulation encountered while drilling through 
the pay zone. The Company will continue working towards removing the lost 
circulation material from the well and commencing full scale production from the 
perforated horizon. Considering the well's apparent high permeability, 
(confirmed by the lost circulation in the pay zone), the Company will reassess 
the use of pumps, or an upgrade in the pump type from the originally planned rod 
pump to ESP should the well's final productivity warrant it.  Further results of 
performance of well 35b will be reported in due course. 
Drilling of the next side track at Petrosakh will commence in January 2011, 
given the time required for logistics, including bringing new drilling materials 
to the site from the mainland. 
Current production 
Production at Arcticneft remains at a level of 712 BODP 
Total current daily production, from both Arcticneft and Petrosakh stands at 
2,475 BOPD 
Enquiries: 
Urals Energy Public Company Limited                 [phone] 
Alexei Maximov 
Grigory Kazakov 
 
Allenby Capital Limited                                       [phone] 
5656 
Nick Naylor 
Alex Price 
 
Pelham Bell Pottinger                                         [phone] 
3232 
Mark Antelme 
Jenny Renton 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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