Urals Energy Public Company Limited Update on strategy and corporate presentation (6261Y)
06 Mars 2017 - 1:37PM
UK Regulatory
TIDMUEN
RNS Number : 6261Y
Urals Energy Public Company Limited
06 March 2017
6 March 2017
Urals Energy Public Company Limited
("Urals Energy", the "Company" or the "Group")
Update on strategy and posting of corporate presentation on the
Company's website
The board of Urals Energy PCL (AIM: UEN), the independent
exploration and production company with operations in Russia, today
provides an update on its strategy for the first half of 2017. In
addition the Company has today posted its corporate presentation on
its website.
Update on strategy
The Company continues to prepare development plans for approval
by the Russian Federal Authorities for its operations on Kolguyev
Island, its two companies in Komi (being BVN Oil and RK-Oil) and
for the South Dagi licence area on Sakhalin Island. These
development plans, once approved, will involve a considerable step
up in the Company's drilling programme. Summaries of planned
operations for this year in each of the Company's areas of
operation are set out below:
Kolguyev Island
a) Undertake an assessment of the well stock efficiency of the
recently acquired Artic Oil Company ("ANK").
b) Re-entry of two idle wells with potential additional production of 80 bbl/day.
c) Installation of eight jack pumps and implementation of a
workover program to maintain stable production levels.
d) Modelling and assessment of fracking potential for production rates.
e) Undertake two export shipments, likely in June 2017 and
October 2017, together with a marine terminal upgrade.
Sakhalin Island
a) Develop and implement a workover programme to maintain a
production rate of 1,240 bbl/day from the existing wells.
b) Drill one step-out well and perform two well work-overs at
the South Dagi field in the second half of the year, which is
expected to lead to an additional incremental production of 290
bbl/day.
c) Upgrade of refinery equipment to increase refinery yield and
facilitate production of new products (e.g. gasoline 95 and
bitumen) and increase the product yield.
d) Obtain a marine terminal license to permit the sale of bunker
fuel, which would be a new, higher margin, use of the refinery's
heavy residual product.
Komi
a) Undertake seismic re-interpretation of the two oil fields to
evaluate possible license area extensions.
b) Undertake re-interpretation of available geological and geophysical data for BVN Oil.
c) Drill one well and perform one work-over of the existing well
for RK-Oil, accompanied by field infrastructure development.
The Board continues to investigate potential partnerships to
finance and share risk in the execution of these development plans,
but this will take time.
Further announcements in respect of the above matters will be
made in due course.
Corporate presentation
The Company's corporate presentation, which contains further
details of the Company's development plans and strategy, is
available to view at the 'presentations' section of the investor
relations area of the Company's website, www.uralsenergy.com.
The Company's corporate presentation contains a summary of an
independent valuation benchmarking study commissioned by the
Company. Among other things, the results of this study indicate
that during the period from the fourth quarter of 2015 to the
fourth quarter of 2016, Urals Energy's increases in production and
2P reserves were better than that at comparable quoted Former
Soviet Union ("FSU") peers. At the end of the fourth quarter 2016
the Company continued to trade at a discount (in terms of reserves
and production) to its quoted FSU peers, and had the lowest
valuation for its 2P reserves amongst its quoted FSU peers. The
valuation of the reserves of quoted FSU companies remain at a
significant discount to all AIM quoted oil and gas companies.
- Ends -
For further information, please contact:
Urals Energy Public Company Limited
Andrew Shrager, Chairman Tel: +7 495 795 0300
Leonid Dyachenko, Chief Executive
Officer
Sergey Uzornikov, Chief Financial
Officer
www.uralsenergy.com
Allenby Capital Limited
Nominated Adviser and Broker
Nick Naylor / Alex Brearley Tel: +44 (0) 20 3328
5656
www.allenbycapital.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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