Urals Energy, the independent exploration and production company with operations in Russia, is pleased to announce the following operational update.

Petrosakh

As announced on 1 November 2013, drilling at Well #53 in the Petrosakh field on Sakhalyn Island has been completed and the Company is pleased to report that the current flow rate of Well #53 is approximately 70 barrels of crude oil per day. The Company is continuing to develop Well #53, as a result of which the flow rate may increase with time. Preparation works for drilling Well #112 are now being finalised and a further announcement will be made at the appropriate time.

Articneft

Following the announcement made on 12 November 2013 the Company would like to clarify that the reason than the shipment was not as large as the previous year was that close to the end of the loading process, the hose to the tanker was torn off by high winds and waves. Given the prevailing storm conditions and in order to avoid spillage, a decision was made to cease further attempts to re-connect and cancel the loading of the remaining crude. Given the fact that the storm was forecast to last for several days, a decision was made for the tanker to leave in order to avoid unnecessary demurrage. The remaining crude oil, approximately 1.5 tons, is still in storage at Articneft waiting for the next shipment.

Tags: Urals Energy Public Company