Urals Energy Public Company Limited 2013 Half -6-

Management have estimated the recoverable amount of cash generating units. Changes in the assumptions used can have a significant impact on the amount of any impairment charge.

   5          Inventories 
 
 
                              30 June    30 June   31 December 
                                 2013       2012          2012 
--------------------------  ---------  ---------  ------------ 
 
   Crude oil                   11,005     10,218         3,486 
 Oil products                   3,930      3,123         2,934 
 Materials and supplies         4,539      3,922         4,710 
--------------------------  ---------  ---------  ------------ 
 
   Total inventories           19,474     17,263        11,130 
--------------------------  ---------  ---------  ------------ 
 
 
   6          Property, Plant and Equipment 
 
                             Oil and 
                                 gas          Refinery and                                      Assets under 
 Cost at                  properties     related equipment   Buildings   Other Assets           construction     Total 
----------------------  ------------  --------------------  ----------  -------------  ---------------------  -------- 
 
   1 January 2012            149,213                 8,141         879          5,488                  6,004   169,725 
 Translation 
  difference                 (2,831)                 (154)        (16)          (104)                  (164)   (3,269) 
 Additions                       251                     -           -              5                    706       962 
 Capitalised borrowing 
  costs                            -                     -           -              -                     43        43 
 Transfers                         -                     -           -              -                      -         - 
 Disposals                     (161)                     -           -              -                      -     (161) 
----------------------  ------------  --------------------  ----------  -------------  ---------------------  -------- 
 
   30 June 2012              146,474                 7,987         862          5,388                  6,589   167,300 
----------------------  ------------  --------------------  ----------  -------------  ---------------------  -------- 
 

Average capitalisation rate of capitalised interest expense for the period ended 30 June 2012 is 5.5%.

 
                               Oil and gas         Refinery and                 Other          Assets under 
                                properties    related equipment   Buildings    assets          construction      Total 
--------------------  --------------------  -------------------  ----------  --------  --------------------  --------- 
 Accumulated 
 Depreciation, 
 Amortisation and 
 Depletion at 
 
   1 January 2012                 (45,025)              (2,660)       (552)   (3,221)                     -   (51,458) 
 Translation 
  difference                         1,021                   65          12        74                     -      1,172 
 Depreciation, 
  depletion and 
  amortisation                     (2,613)                (225)        (24)     (179)                     -    (3,041) 
 Disposals                             104                    -           -         -                     -        104 
--------------------  --------------------  -------------------  ----------  --------  --------------------  --------- 
 30 June 2012                     (46,513)              (2,819)       (564)   (3,327)                     -   (53,223) 
--------------------  --------------------  -------------------  ----------  --------  --------------------  --------- 
 
 
                            Oil and   Refinery and                                Assets 
                                gas        related                 Other           under 
                         properties      equipment   Buildings    Assets    construction     Total 
---------------------  ------------  -------------  ----------  --------  --------------  -------- 
 
   Net Book Value at 
 
   1 January 2012           104,188          5,481         327     2,267           6,004   118,267 
---------------------  ------------  -------------  ----------  --------  --------------  -------- 
 
   30 June 2012              99,961          5,168         298     2,061           6,589   114,077 
---------------------  ------------  -------------  ----------  --------  --------------  -------- 
 
 
 
                             Oil and gas        Refinery and                                   Assets under 
 Cost at                      properties   related equipment   Buildings   Other Assets        construction      Total 
-------------------  -------------------  ------------------  ----------  -------------  ------------------  --------- 
 
   1 January 2013                161,850               8,630         933          5,843               5,815    183,071 
 Translation 
  difference                    (11,565)               (617)        (66)          (450)               (462)   (13,160) 
 Additions                            81                   -           -            630                 864      1,575 
 Capitalised 
  borrowing costs                      -                   -           -              -                  14         14 
 Transfers                             -                   -           -              -                   -          - 
 Disposals                             -                   -           -              -                   -          - 
 
   30 June 2013                  150,366               8,013         867          6,023               6,231    171,500 
-------------------  -------------------  ------------------  ----------  -------------  ------------------  --------- 
 

Average capitalisation rate of capitalised interest expense for the period ended 30 June 2013 is 5.5%.

 
 
  Accumulated 
  Depreciation, 
  Amortisation and           Oil and gas        Refinery and                                   Assets under 
  Depletion at                properties   related equipment   Buildings   Other Assets        construction      Total 
-------------------  -------------------  ------------------  ----------  -------------  ------------------  --------- 
 
     1 January 2013             (53,253)             (3,274)       (634)        (3,610)                   -   (60,771) 
 Translation 
  difference                       3,941                 245          46            271                   -      4,503 
 Depreciation                    (2,645)               (222)        (24)          (312)                   -    (3,203) 
 Disposals                             -                   -           -              -                   -          - 
 
 30 June 2013                   (51,957)             (3,251)       (612)        (3,651)                   -   (59,471) 
-------------------  -------------------  ------------------  ----------  -------------  ------------------  --------- 
 
                                                Refinery and 
                             Oil and gas             related                                   Assets under 
                              properties           equipment   Buildings   Other Assets        construction      Total 
 
  Net Book Value at 
 1 January 2013                  108,597               5,356         299           ,233               5,815    122,300 
 
   30 June 2013                   98,409               4,762         255          2,372               6,231    112,029 
-------------------  -------------------  ------------------  ----------  -------------  ------------------  --------- 
 

Included within oil and gas properties at 30 June 2013 and 31 December 2012 were exploration and evaluation assets:

 
                                    Cost at 
                                         31                                Cost at 
                                   December               Translation           30 
                                       2012   Additions    difference    June 2013 
-------------------------------  ----------  ----------  ------------  ----------- 
 
 Exploration and evaluation 
  assets 
 
 Arcticneft                          16,967           -       (1,212)       15,755 
 Petrosakh                           30,885           -       (2,206)       28,679 
-------------------------------  ----------  ----------  ------------  ----------- 
 Total cost of exploration and 
  evaluation assets                  47,852           -       (3,418)       44,434 
-------------------------------  ----------  ----------  ------------  ----------- 
 

The Group's oil fields are situated in the Russian Federation on land owned by the Russian government. The Group holds production mining licenses and pays production taxes to extract oil and gas from the fields. The licenses expire between 2037and 2067, but may be extended. Management intends to renew the licenses as the properties are expected to remain productive subsequent to the license expiration date.