11 Aug 2016 16:07
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).
11 August 2016
Urals Energy PCL
(''Urals Energy'' or the ''Company'')
Operational update
Urals Energy PCL (AIM:UEN), the independent exploration and production company with operations in Russia, is pleased to make the following announcements:
Tanker loading
The planned annual tanker shipment for export from Arcticneft on Kolguyev Island has been successfully completed. The tanker has left Kolguyev Island with 28,441 tons of crude oil (an equivalent of 225,283 barrels).
Export finance
As announced on 25 May 2016, the Company entered into a secured short-term loan agreement with Petraco Oil Company Limited ("Petraco"). The re-payment date for the US$6.0 million received from Petraco under this agreement is linked to the shipment of the tanker as described above. This indebtedness is anticipated to be settled in the coming few weeks.
Well 109 and Drilling Programme for Petrosakh
Following the announcement on 15 March 2016 that Prokon, a geological services company, had been appointed to assist the Company with reviewing the data from Well 109 and monitoring its development, it has been established that while oil is flowing as expected from the Pilenga Formation at a depth range of 1,700 to 1,842 m, high pressure water has continued to flow from outside the casing. A workover using liquid glass has been conducted and is to be followed by cement bridges as part of a further workover.
The next two wells are to be drilled in the central block of the oil field with the objective of raising reservoir pressure and increasing the flow rate within the area.
The section of this release with respect to Well 109 has been approved by Mr Vasily Nikoluk, Chief Geologist, a graduate of the Ivano Frankivsk University, the former head of department at Gazpromneft and a qualified person, in accordance with the guidance note for Mining, Oil & Gas Companies, issued by the London Stock exchange in respect of AIM companies, which outlines standards for disclosure for oil companies.
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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 Tel: +44 (0) 20 3328 5656
Alex Brearley www.allenbycapital.com