Response to Media Speculation

RNS Number:6275W
Urals Energy Public Company Limited
15 May 2007



                      Urals Energy Public Company Limited

                       ("Urals Energy" or the "Company")

                         Response to Media Speculation



Urals Energy notes reports and comments today attributed to Oleg Mitvol, Deputy
Head of Rosprirodnadzor, regarding accusations made by unnamed local
environmentalists over alleged environmental violations by the Company.



The Company has not received any official warning or notification with regard to
violations or Ministry investigations. Furthermore, the Company is confident
that no violations have occurred and these accusations will be shown to be false
should any examination take place.



Urals Energy is committed to best practice in all of its production and
development operations in Russia. The Group averaged production of around 10,000
boepd in 2006 across its operations and is committed to further investment in
Russia. The Group is currently targeting production of 50,000 boepd by 2013.
This year Urals Energy will invest approximately US$93 million on the
development of its assets. Across its eight different subsidiaries Urals
Energy's operations are routinely reviewed and inspected by the relevant
Ministry agencies and in each case has received the necessary approvals. The
Group operates all of its assets in accordance with Russian regulations and
legislation.



Urals Energy published a reserves report by the independent reserves engineer
DeGolyer & MacNaughton in April 2007, in accordance with SPE standards. This
report updated all of the Group's reserves including its gas reserves at the
Dulsiminskoye field. The Company notes that all of its reserves as well as the
gas reserves attributed by DeGolyer & MacNaughton are less than the reserves
certified by the GKZ, the Russian State Reserves Committee.



Leonid Dyachenko, Chief Executive of Urals Energy, commented:



"These allegations are without foundation. Urals Energy has an excellent track
record of compliance within all of its operating subsidiaries. We have offered
our full cooperation to the Ministry today to clear these misunderstandings and
look forward to working with them. I am confident that this issue will be
quickly resolved."







                                                                     15 May 2007



Enquiries:


Pelham PR
James Henderson           [phone]                 [phone]
Gavin Davis               [phone]                [phone]




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