Urals Energy Plc Regulatory News (UEN)

22 Jan 2008 07:00

Urals Energy Public Company Limited22 January 2008 Urals Energy Public Company Limited ('Urals Energy' or the 'Company') Dulisma Development Update Urals Energy, a leading independent exploration and production company withoperations in Russia, today announces an operational update on the Company'sDulisma field, East Siberia. In line with the Dulisma field development plan, Urals Energy has awardedcontracts totalling almost US$60 million for the construction of the first stageof the Central Processing Facilities, infield gathering system and exportpipeline system which are scheduled for completion by end of 2008. Urals Energy intends to tie-in to Transneft's East Siberia to Pacific Ocean(ESPO) pipeline in accordance with previous approvals. Consequently, all of the273 mm diameter linepipe has been procured and is in the process of beingdistributed to the pipeline route. In addition, long lead equipment for the CPFis currently being delivered to the Dulisma field. By the end of April, Urals Energy expects delivery of its second new drillingrig from China and at the same time the Company also expects to have resultsfrom the first new horizontal development well which is now being drilled withthe existing drilling rig. Production is currently running at 800 bopd from existing wells. Dulisma, asestimated by DeGolyer and MacNaughton, contains 464 mmboe of 2P reserves and isanticipated to reach production of 30,000 bopd by 2011. Oil from the field isexpected to flow into the ESPO in H1 2009. The Company is also making progress on its other operational areas, and furtherdetail will be provided when appropriate. 22 January 2008 Enquiries: Pelham PRGavin Davis +44(0)20 7743 6677 / +44(0)7910 104 660Evgeniy Chuikov +44(0)20 3008 5506 / +44(0)7894 608 606 This information is provided by RNS The company news service from the London Stock Exchange