Independent Project Report

RNS Number:4918C
Urals Energy Public Company Limited
04 May 2006

For Immediate Release

                      Urals Energy Public Company Limited

Announcement of Independent Project Report for Dulisminskoye Oil, Condensate and
                                   Gas Field

As previously announced on 18 April 2006, Urals Energy Public Company Limited ("
Urals Energy" or "the Group") has signed a definitive Sales and Purchase
Agreement for the $148 million acquisition of the Dulisminskoye field together
with the LTK transportation and treating facilities, all located in the Irkutsk
region of Eastern Siberia.  The acquisition is expected to close in June 2006.

Urals Energy announces today that the report for the recently acquired
Dulisminskoye oil, condensate and gas field prepared by DeGolyer and MacNaughton
("D&M"), the Group's independent reservoir engineers, is now available to
download via the Group's website: www.uralsenergy.com.

The conclusions of the comprehensive report are consistent with D&M's
preliminary estimates as released by the Group at the time of the announcement:
net 2P (proved plus probable) reserve additions of 109.4 million barrels of oil
and condensate and net 3P (proved, probable and possible) reserve additions of
196.3 million barrels of oil and condensate and 1.7 trillion cubic feet of gas.
Oil production is projected to peak in 2011 when the field is expected to
produce at an average annual rate of approximately 29,000 BOPD.  The report
conclusions are summarized as follows:

                           Proven               Probable             Possible
Oil                        35,836               70,597               10,246
Condensate                 984                  2,012                76,581
Sales Gas                  0                    0                    1,682,265


(Oil and Condensate expressed in thousands of barrels; Sales Gas expressed in
millions of cubic feet)

The report also incorporates the Group's projected phase one and phase two
development and capital expenditure plans, which total approximately $395
million over 14 years, including the full cost of a stand-alone $115 million,
30,000 BOPD pipeline to connect to Transneft's planned East Siberian Pacific
Ocean pipeline. The report shows a maximum investment cash-out amount of
approximately $50 million over the first four years, at which point the project
is projected to turn cash flow positive. The projected PV10 of the investment
over the 25 year life of the forecast equals $410 million.

Further information on the Group's funding requirements and financing plans
relating to the acquisition, as well as further information on Dulisma, will be
provided in due course.

4 May 2006


Pelham PR
James Henderson                                                  020 7743 6673
Gavin Davis                                                      020 7743 6677




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