Transneft tie-in approval

3 Oct 2007 09:04

Urals Energy Public Company Limited03 October 2007 Urals Energy Public Company Limited ('Urals Energy' or the 'Company') Approval of Dulisminskoye pipeline tie-in designs Urals Energy, a leading independent exploration and production company withoperations in Russia, today announces that OAO AK Transneft has approved theCompany's proposed designs and construction of the Dulisminskoye pipeline tie-into Transneft's ESPO. Following the approval of the proposed technical designs and projectedconstruction work, the Company intends to commence field preparation work forconstruction of the tie-in pipeline as planned in Q4 2007. The Dulisminskoye field is located in the strategically significant EasternSiberia Region. This region has become the key new frontier in the Russian oiland gas sector with its significant undeveloped reserves and close proximity toAsian-Pacific markets. As assessed by DeGolyer and MacNaughton the Dulisminskoye field is estimated tohave 464 mmboe and is projected to reach 30,000 bopd production by 2011. Firstoil from the field is expected to flow into Transneft's ESPO in H1 2009. Lyonid Dyachenko, Chief Executive, commented: "The approval of the tie-in designs is a major milestone and will allow us tocommence construction of the pipeline on time. As well as our earlier signed memorandum with Gazprom regarding the sale of gasfrom the Dulisminskoye field, this is another important step towards fulldevelopment of this significant asset." 3 October 2007 Enquiries: Pelham PR Gavin Davis +44(0)20 7743 6677 / +44(0)7910 104 660 Evgeniy 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