Urals Energy Public Company Limited Operational updates (8504W)
06 August 2018 - 4:00PM
UK Regulatory
TIDMUEN
RNS Number : 8504W
Urals Energy Public Company Limited
06 August 2018
6 August 2018
Urals Energy Public Company Limited
("Urals Energy", the "Company" or the "Group")
Operational updates
The Board of Urals Energy (AIM:UEN), the independent exploration
and production company with operations in Russia, provides the
following operational updates.
Drilling of Well 1 at South Dagi
The drilling of the Group's planned exploration well (Well 1) at
the South Dagi field on Sakhalin Island has reached a depth of
approximately 1,400 meters. Some 20 days of operation have been
lost for separate minor technical reasons, but drilling is now
advancing at a rate of 30 to 50 meters per day. Well 1 has a target
depth of 2,200 meters, with the well's target pay horizons being
the Okobycay and the Daginsky neogenic horizons. The Board
anticipates that the drilling of Well 1 should be completed and
tested by the second week of September.
Tanker payment
Further to the Company's announcement of 20 July 2018, the
Company has now received payment from Petraco Oil Company Limited
following the tanker shipment in mid-July 2018. The pre-export
short-term loan finance arrangement provided by Petraco Oil Company
Limited (as detailed in the Company's announcement of 24 May 2018),
including accrued interest, has now been settled in full.
The Board anticipates that the second 2018 tanker loading for
Articneft will be in November 2018, with a target of up to 20,000
tons of special light crude oil (158,000 barrels).
Investment in Kholmsk port
The Company's Petrosakh subsidiary has acquired a 23% voting
interest in the Kholmsk commercial seaport, which is situated on
the Western side of Sakhalin Island. The Company's interest in the
Kholmsk commercial seaport is comprised of 17,858,826 ordinary
shares (out of a total of 64,940,000 ordinary shares that are in
issue) and 2,262,000 preference shares (out of a total of
21,646,000 preference shares that are in issue).
The seaport has bunkering facilities to supply fuel oil to
shipping fleets and ferries, which are the main users of the
seaport. The Group's refinery at Petrosakh on Sakhalin Island
refines all of the Company's crude oil production on the island,
including producing fuel oil. The Board has therefore made the
investment in the Kholmsk commercial seaport to assist with
marketing its diesel and fuel oil directly to end users. The
Company already has a bunker fuel sales operations at Kholmsk and
this will benefit from the investment.
The Company intends to seek to appoint three representative
directors to the seaport's board (out of a total board of seven
directors) at a forthcoming general meeting to be held on 27 August
2018.
The Company purchased its 27.5% interest in the ordinary shares
and its 10.45% interest in the preference shares from an
individual, Mr. Dmitry Vasilevich. In addition, the Company has
acquired Russian Roubles 8.46 million of the Kholmsk commercial
seaport's outstanding debt under an assignment agreement from its
creditor, Enhance NDS LLC. The total consideration for the
Company's investment in the seaport is approximately Russian
Roubles 119.5 million (which is currently equivalent to
approximately US$ 1.9 million).
- 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 www.uralsenergy.com
Officer
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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