UEN Urals EN.

RNS Number:0677R
Urals Energy Public Company Limited
12 February 2007

FOR IMMEDIATE RELEASE:


                      Urals Energy Public Company Limited

                  Financing, Management and Operational Update

Urals Energy ("Urals Energy" or the "Group") (LSE: UEN) a leading independent
exploration and production company with operations in Russia announces the
closing of its previously announced financing agreement, key management
appointments and commencement of fracture stimulation operations.

Initial Closing of Debt Financing

Urals Energy announces that the $130 million project development loan for OOO
Dulisma, arranged by Goldman Sachs and funded by Standard Bank, was closed on 9
February 2007.

A first tranche funding of $50 million has been received, and the remaining $80
million is expected to be funded in approximately three weeks after approval by
Urals Energy's senior bank syndicate.

As previously announced, the $130 million gross financing proceeds will be used
to reimburse Urals Energy for planned development costs incurred at Dulisma
since the field's acquisition in June 2006, the defeasance of cash interest
payments for the first two years of the facility, and the remainder, for future
capital and operating costs of Dulisma in order to develop the Dulisminskoye
field to its projected peak production level of 30,000 BOPD by 2011.

The receipt of this first tranche and the expected timing on the remaining
funding allows Urals Energy to work to the accelerated development timetable for
Transneft's East Siberia Pacific Ocean pipeline, now under construction.

Key Management Appointments

To reflect the ongoing growth of the company, Urals Energy is pleased to
announce the appointment of three new key management personnel.

William S. Hayes has been appointed Senior Vice President and General Counsel.
Mr Hayes will act as chief legal officer of the Company and is responsible for
all Group legal activities.

Mr. Hayes has over 25 years experience as an international energy lawyer with
Andrews & Kurth, British Gas, Vanco Energy Company and Cardinal Resources plc.
He is a graduate of the University of Texas at Austin (B.J.) and St. Mary's
University School of Law (J.D.).

Maxim V. Bezriadin has been appointed Vice President and Business Unit Manager,
East Siberia where he will be responsible for Urals Energy's activities in East
Siberia. This is a new core area for Urals Energy and includes the important
Dulisminskoye oil, gas and condensate field.

Mr. Bezriadin, a native of Irkutsk, was most recently Chief Executive of OJSC
Verkhnochonskneftegaz, a company jointly owned by Rosneft and TNK-BP.  Mr.
Bezriadin previously worked for British Petroleum in Russia. He is a graduate of
the University of Maryland (B.S. Business), Irkutsk State University (M.S.
International Economics) and Ural State Economic University (Ph.D. in
Economics).

Stephen D. Kirton has been appointed Vice President, Technical Services.  Mr.
Kirton is responsible for managing Urals Energy's subsurface technical analysis
including geology, geophysics, reservoir engineering and reserves reporting.  He
will also be responsible for license compliance.

Mr. Kirton has over 25 years experience as both a geologist and production
engineer and has specialized in Russian and FSU oil exploration and production
since 1991. He has served with Gulf Canada, KomiArctic Oil, Harvest Natural
Resources and Lundin Petroleum.  He is a graduate of the University of Waterloo
(B.S. Earth Science).

Commencement of Initial Fracture Stimulation Program

Urals Energy also announces that it has commenced fracture stimulation
operations at its producing subsidiary OAO Petrosakh on Sakhalin Island. An
initial four-well stimulation program has begun on the Okruzhnoye field

During 2006, Urals Energy acquired and refurbished a Canadian-built fracture
stimulation fleet consisting of three pumping units and blender.  Urals Energy
plans to fracture stimulate a total of nine wells at Petrosakh, and then move
the equipment to the Komi Republic later this year, where it will continue
fracture stimulating an additional five fields.

William R. Thomas, CEO, Commented:

"The closing of the Dulisma project loan is a key milestone in the development
of this important field and with the appointment today of three key personal,
including Maxim Bezriadin, who will be responsible for this field and other
operations in Eastern Siberia, we are well prepared to meet all our targets on
this project.

Our planned fracture stimulation program at Petrosakh has now commenced and we
hope to report on progress as we work to increase production on this field.

We continue to put the building blocks in place and as we grow we recognize the
importance of adding to our management ranks. As such, we are pleased to have
executives who have solid experience operating in Russia join our team."



                                                                12 February 2007


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




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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