Urals Energy Plc Regulatory News (UEN)

15 Jun 2007 13:56

Urals Energy Public Company Limited15 June 2007 Urals Energy Public Company Limited ("Urals Energy" or the "Company") Urals Energy signs Memorandum of Cooperation with Gazprom Urals Energy, a leading independent exploration and production company withoperations in Russia, today announces the signing of a Memorandum of Cooperationwith Gazprom, the world's largest gas company. The Memorandum states that Gazprom and Urals Energy have reached an agreement onfuture cooperation in the areas of production and marketing of gas from theDulisma field owned by Urals Energy. According to the Memorandum, Urals Energy will ensure that the Dulisma field isdeveloped according to the company's stated development plan and is scheduled tobe on commercial production in 2008-2009. When this occurs, Urals Energy and itsaffiliates or subsidiaries will sell natural gas from the Dulisma field toGazprom. The parties will also consider cooperation in production of LPG products plusother mutual infrastructure projects, such as pipelines and power generation. The Memorandum also states that both parties may consider cooperating in othermutually beneficial ways. The Dulisma field is one of Urals Energy's major assets with gas reserves of1.9m tcf (condensate 46 mmbo and gas 323 mmboe reserves) all now fully booked asproved and probable. The field also enjoys a 10 year tax holiday for the periodbetween 1 January 2007 and 31 December 2016. This tax holiday is estimated toproduce savings of approximately $308 million over the 10 year period andfurther exemplifies the importance of this asset to Urals Energy. Leonid Dyachenko, Chief Executive of Urals Energy, commented: "Urals Energy is proud to be one of a select number of companies to sign anagreement with Gazprom and we look forward to working with them to furtherdevelop local infrastructure and unlock the potential of the Irktursk region. This landmark agreement is a significant milestone for Urals and its key assetand with this agreement we have now delivered on all stated plans for thisfield. We are now focused on delivering to our operational timeline and look forward toentering this attractive gas market. 15 June 2007 Enquiries: Pelham PRJames Henderson +44(0)20 7743 6673 +44(0) 777 4444 163Gavin Davis +44(0) 20 7743 6677 +44(0)79 1010 4660 Notes to editors: Following completion of the Dulisma acquisition in June 2006, the Group has beenactively executing its development programme targeting peak production of 30,000bopd by 2011. This information is provided by RNS The company news service from the London Stock Exchange