Operational update and Petraco debt restructuring

 

TIDMUEN 
 
RNS Number : 5384M 
Urals Energy Public Company Limited 
26 May 2010 
 

26 May 2010 
                      Urals Energy Public Company Limited 
                        ('Urals Energy' or the 'Company') 
 
      Operational Update and Petraco debt restructuring - Issue of shares 
 
Following the announcements made on 12, 20 and 29 April 2010, Urals Energy has 
issued 8,693,006 shares with a nominal value of US$0.0063 each to Petraco Oil 
Company Limited (the "Petraco Shares") pursuant to the restructuring agreement 
between the Company and Petraco. 
 
In addition, Urals Energy has also issued 117,812 shares with a nominal value of 
US$0.0063 each (the "Sidorovich Shares") to Vladimir Sidorovich pursuant to the 
terms of the Company's Restricted Stock Plan adopted in February 2006 and the 
terms and conditions of the termination of Mr. Sidorovich's consultancy 
agreement. 
 
The Petraco Shares and Sidorovich Shares represent approximately 4.61 percent 
and 0.06 percent respectively of the enlarged issued share capital and will rank 
parri passu with the existing shares. Application has been made for the Petraco 
Shares and Vladimir Sidorovich Shares to be admitted to trading on AIM and 
dealings are expected to commence at 8.00am on 27 May 2010. Following the issue 
of all of the Petraco Shares and Vladimir Sidorovich Shares, the total number of 
shares in issue will be 188,519,367 shares with a nominal value of US$0.0063 
each. 
 
Operational Update 
 
At Petrosakh production remains unchanged on the level of 1,577 BOPD (barrels of 
oil per day). Since the date of the last operational update the Company has 
completed the optimisation of production from the recently perforated well 34 
and optimisation of a water injection well 42, which resulted in an increase in 
production by 46 BOPD, which was offset by a decline from other wells. 
Deliveries of the two rod pumps are expected shortly and will be installed on 
well 47 and on another well, which is now being assessed. 
 
The Company intends to drill well 35b, the first sidetrack well, in early June 
2010.  The drilling rig has already been assembled on site and is awaiting final 
deliveries of drilling equipment before spudding. 
 
Urals has also commenced production of Gasoline 92 with first deliveries priced 
at 23,600 Roubles per ton ($98/bbl) net of VAT. Despite the recent decrease in 
crude oil prices the prices for oil products on Sakhalin Island have not to date 
been impacted. 
 
At Arcticneft, production has stabilised and a moderate increase of 25bopd to 
725 BOPD was achieved as a result of the maintenance works performed on the 
three wells (numbers 101, 36 and 609). The Company is now evaluating data from 
the geological studies commissioned in Q1 2010 in order to determine the 
remaining field development programme at Arcticneft. 
 
Enquiries: 
 
+----------------------------------+--------------------------------+ 
| Urals Energy Public Company      |                                | 
| Limited                          |                                | 
+----------------------------------+--------------------------------+ 
| Alexei Maximov                   | [phone]               | 
+----------------------------------+--------------------------------+ 
| Grigory Kazakov                  |                                | 
+----------------------------------+--------------------------------+ 
|                                  |                                | 
| Allenby Capital Limited          | [phone]            | 
+----------------------------------+--------------------------------+ 
| Nick Naylor                      |                                | 
| Alex Price                       |                                | 
+----------------------------------+--------------------------------+ 
|                                  |                                | 
+----------------------------------+--------------------------------+ 
| Pelham Bell Pottinger            | [phone]            | 
+----------------------------------+--------------------------------+ 
| Mark Antelme                     |                                | 
+----------------------------------+--------------------------------+ 
| EvgeniyChuikov                   |                                | 
+----------------------------------+--------------------------------+ 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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