Urals Energy Plc Regulatory News (UEN)

2 Sep 2008 12:34



Urals Energy Public Company Limited 

('Urals Energy' or the 'Company') 

Petrosakh Update

Urals Energy (London AIM: UEN), a leading Russian independent upstream development and production company is pleased to announce that the Petrosakh development well No. 52 in Okruzhnoye Field, Sakhalin Russian Federation, is flowing 39.4 degree API oil at 450 bopd from the Pileng reservoir. The well was drilled to 1,751 meters and oil pay was encountered from 1605 to 1750 meters. The production from the field has stabilized at approximately 2500 bopd and up by 23.6% from the beginning of 2008. 

Urals Energy holds other production licenses in Komi, Timan Pechora, Udmurtia, and East Siberia. Its stated goal is to focus on green field developments in East Siberia and is also committed to maximizing the value of its mature assets even while progressing with sales of those assets located outside of East Siberia including Petrosakh.

Urals Energy owns interest in two fields in East Siberia, Dulisma Field at 100% and SredneBotuobinsky Field at 35.3%.

Leonid (Alex) Dyachenko, CEO, commented:

"We are delighted to have drilled and completed an excellent flowing oil well in one of our mature fields, Petrosakh's Okruzhnoye Field, Sakhalin Island. Last year we concluded a 3D seismic study for our license areas in Sakhalin which aided our specialists in finding additional opportunities and we also expanded an ongoing pressure maintenance injection program.

This underscores the strength of our commitment to maximizing existing value and whilst our strategy is the development of East Siberian assets, such success in Petrosakh highlights the value of our reserves base, which has grown year on year from 579 MMboe to 1202 MMboe as of year end 2007." 

2 September 2008

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NOTES TO EDITORS

Urals has a 97.2% interest in Sakhalin Okruzhnoye Field and the regional government's operating company, Sakhalin Oil Company, owns the remaining 2.8%