Urals Energy Plc Regulatory News (UEN)

14 Dec 2007 07:01

Urals Energy Public Company Limited14 December 2007 URALS ENERGY PUBLIC COMPANY LIMITED ("URALS ENERGY" OR THE "COMPANY") COMPLETION OF ACQUISITION Urals Energy (LSE: UEN), a leading independent exploration and productioncompany with operations in Russia, announces that it has completed theacquisition from Finfund Limited ("Finfund") of a 32.3% interest in OOOTaas-Yuriakh Neftegazodobycha ("Taas"), the principal terms for which werereferred to in the Company's announcement on 28 November 2007 (the "AcquisitionAnnouncement"). In accordance with the Acquisition Announcement, the price paid for the 32.3%interest comprised US$440 million in cash and the issue of 22,738,034 shares ofthe Company to Finfund (the "Consideration Shares"). Application has been madefor admission of the Consideration Shares to AIM and it is expected that theadmission will become effective on 18 December 2007. Finfund has undertaken notto dispose of the Consideration Shares for a period of 180 days from today,subject to customary exceptions. Also in accordance with the Acquisition Announcement, certain funds managed byAshmore Investment Management Limited, a third party unrelated to the Company,have also completed their acquisition of a 10.5% interest in Taas. As referred to in the Acquisition Announcement, the Company will acquire afurther 3.0% interest in Taas within 150 days from today and has an option toacquire a further 4.2% interest in Taas in January 2009. Leonid Y. Dyachenko, Chief Executive of the Company, commented: "The completion of this transformational acquisition is a significant step forthe company and underlines our ability to deliver to our strategy. We now movetowards achieving our operational targets." 14 December 2007Enquiries:Pelham PRGavin Davis +44(0)20 7743 6677 / +44(0)7910 104 660Evgeniy Chuikov +44(0)20 3008 5506 / +44(0)7894 608 606 Notes to Editors This Acquisition more than doubles the Company's net proved-plus-probable (2P)oil reserves by adding up to net 272 mmbbl, of which 94 mmbbl are classified asproved (1P), based on a reserves study of the SRB field by Degolyer &MacNaughton ('D&M'). With this Acquisition, the Company's net production from East Siberia isexpected to be 75,000 bopd by 2013, comprising 45,000 bopd from the SRB fieldand 30,000 bopd from the Dulisminskoye field (the 'Dulisma field'). This information is provided by RNS The company news service from the London Stock Exchange