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23 Apr 2015 07:00
Press Release | 23 April 2015 |
Urals Energy PCL
(''Urals Energy'' or the ''Company'')
EGM Statement
Urals Energy PCL (AIM:UEN), the independent exploration and production company with operations in Russia, is pleased to make the following statement ahead of the Company's Extraordinary General Meeting that is being held in Cyprus at 9 a.m. (BST) today.
As stated previously, the Board of Urals Energy believes that the Company's current share price range does not fairly represent the value of the Company for the following reasons:
· | the Company has resolved the legacy litigation issues and has the support of its major shareholders; |
· | the Company has largely been compensated for the recent fall in oil price by the reduction in the rouble exchange rate and the Company is able to trade normally in the Russian economy; |
· | as previously announced the Company's work over programme at Articneft has been successful and is proceeding in accordance with the Board's schedule. Once the oil price recovers further, the Board has plans for a significant programme to develop the Company's proven underdeveloped reserves at Articneft; |
· | at Petrosakh, the Company has resolved the immediate problems at the refinery and will soon have a replacement control system. On Well #112, as previously announced, the Company had technical problems and are deviating the well, but having to proceed slowly to reduce the risk of further technical issues, and will announce results as soon as they become available; |
· | the Company is debt free; |
· | the Company expects to make its annual shipment from Articneft in August 2015, two months ahead of last year, which the Board believes will reduce the weather risks that the Company has faced in previous years; |
· | the Board has, and continues to, consider a number of potential acquisition opportunities, but is only prepared to pay what the Board considers to be fair premiums for assets. The Board still believes that opportunities for suitable acquisitions will emerge in Russia, given the current market conditions; and |
· | the Board remains confident that Urals Energy can continue to manage its business successfully and expand the Company as opportunities allow. |
The Company expects to announce its preliminary results for the year ended 31 December 2014 in May 2015, further details of the exact date of the release of the Group's results will be announced in due course.
- Ends -
For further information, please contact:
Urals Energy Public Company Limited | |
Andrew Shrager, Chairman | Tel: +7 495 795 0300 |
Leonid Dyachenko, Interim Chief Executive Officer | www.uralsenergy.com |
Allenby Capital Limited Nominated Adviser and Broker | |
Nick Naylor / Alex Price / Alex Brearley | Tel: +44 (0) 20 3328 5656 |
www.allenbycapital.com |
Media enquiries: Abchurch | |
Henry Harrison-Topham / Quincy Allan | Tel: +44 (0) 20 7398 7702 |
uralsenergy@abchurch-group.com | www.abchurch-group.com |
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