20 Sep 2010 14:44
20 September 2010
Urals Energy Public Company Limited
('Urals Energy' or the 'Company')
Board appointment, Operational update and Grant of options
Board appointment
Urals Energy, the Russian focused oil & gas exploration and production company, is pleased to announce that Mrs Ingeborg Srenger has been appointed to the Board as anon-executive Director with immediate effect.
Mrs Srenger has an extensive working knowledge of the oil industry, in which she has worked for over 30 years. Having graduated from Queen Mary College in London in Economic Sciences in 1980, Mrs Srenger worked as an oil market analyst at Petroleum Economics Ltd. in London, specialising in North Sea crude oil. Mrs Srenger joined Petraco Spa in 1981 as Senior Assistant to the Head of Crude Oil and Oil Products Purchases Department. Since 1993she has held the role of Managing Director and Commercial Director responsible for worldwide oil and oil products trading.
Mrs Srenger has been appointed by the Board pursuant to the Company's undertaking with Petraco Oil Company Limited ("Petraco") to appoint a person nominated by Petraco in accordance with the restructuring of the Company's prepayment financing arrangements with Petraco, which are detailed in the letter to shareholders sent on 12 April 2010. The Board are delighted by the show of support from Petraco, and see this appointment as demonstrating the strength of the long term relationship and look forward to a productive relationship in the future.
Operational update
The Board are pleased to report that the drilling of the side track well 35b at Petrosakh is progressing satisfactorily with a depth of 1,500 meters being achieved. A further 150 meters are still to be drilled following which there will be a 2 week period of logging and completion. Further announcements on progress at this side track well will be made when appropriate.
As announced on 9 September 2010, the Company intends to load a second tanker at Arcticneft during the autumn and the proceeds from the sale of this oil will, the Directors believe, provide the Company with sufficient capital in order to continue to operate the business until the next tanker collection in July 2011.
It is the Board's strategy to continue to investigate ways to maximise production from the Company's existing assets at Petrosakh and Arcticneft and the Board will report further developments on these when they are able to. The Company's ability to implement its strategy will be dependent upon weather conditions at Petrosakh and Arcticneft during the forthcoming winter and spring.
The Company's current production is running at 2,320 barrels of oil per day. This is based on natural flow rates at the Company's existing producing wells at Petrosakh and Arcticneft.
,Following the significant capital restructure undertaken in 2010 and 2009, the Directors are confident that the Company can execute its previously announced development plan.
Grant of options
The Board also announces the intention to vest all the shares previously granted within the Company's restricted stock option plan that was put in place in 2005. A new restricted stock option plan will be put in place and the Board has resolved to grant the following options to directors of the Company:
|
| Vesting dates | ||
Option holder | Number of option shares | Immediate | 01January 2011 | 01January 20112 |
Maximov A.D. | 4,399,554 | 1,466,518 | 1,466,518 | 1,466,518 |
Dyachenko L.Y. | 1,728,396 | 0 | 864,198 | 864,198 |
Ogarev A.V. | 1,728,396 | 0 | 864,198 | 864,198 |
Kazakov G.B. | 1,728,396 | 0 | 864,198 | 864,198 |
In light of theaward of the above stock option, the Company's executive Directors will not receive any bonuses in respect of the year ending 31 December 2009. There are no performance conditions beyond continued employment with the Group.
It is the Board's intention that no more than 10% of the Company's issued share capital will be issued under the new restricted stock option plan. The above awards represent 5.05% of the Company's current issued share capital.
Alexei Maximov, Chief Executive of Urals Energy commented, "Following our successful recent refinancing with Petraco, we are delighted to welcome Ingeborg Srenger to the Board and are delighted with the show of support for the Company that this demonstrates from Petraco. Ingeborg brings with her a wealth of experience in the oil industry and her input will be highly valuable in helping to deliver on our strategy of maximising production from the Company's existing assets. With progress demonstrated with the recent side track of Well 35b, the Directors continue to focus on delivering value from the existing asset base."
Enquiries:
Urals Energy Public Company Limited | +7 495 795 03 00 |
Alexei Maximov |
|
Grigory Kazakov |
|
Allenby Capital Limited |
+44 (0)20 3328 5656 |
Nick Naylor Alex Price |
|
|
|
Pelham Bell Pottinger | +44 (0)20 7861 3232 |
Mark Antelme |
|
EvgeniyChuikov |
|
ENDS
Regulatory information
Ingeborg Srenger (51 years old)
Current directorships: |
Petraco Oil Company Ltd |
Petraco spa |
There are no further disclosures to be made in relation to Mrs Srenger under Schedule Two, paragraph (g) (i)-(viii) of the AIM Rules for Companies.