Urals Energy announces operational update

Urals Energy PCL has provided an operational update. Total production by the Group during 2015 increased by 2.0% y/y and reached 675 318 barrels. This was made up as follows:

Production at Arcticneft reached 253 592 bbls and production at Petrosakh reached 421 726 bbls.

Petrosakh

Current daily production at Petrosakh is 1350 bpd.

Well 109

Drillingof Well 109 to a depth of 1842 m has been completed. At a depth of 1700 to 1842 m, the Well encountered the Pileng formation, which is typically an oil-saturated zone. However, during the Well completion (performed via gas injection), the Well flowed high pressured water which may be preventing the flow of oil to the surface.

The Well is still being tested and the team is carrying out downhole logging in order to define the fluid movement profile and its fractional composition.

Refinery

Weather conditions in recent months have been adverse on Petrosakh Island, which has led to increased demand resulting in the Company seeing good sales volumes at satisfactory prices. The new refinery control system is proving very effective in optimising production.

Arcticneft

Current daily production at Arcticneft is 680 bpd, which is in line with the same period of 2015. Recent work overs have proven effective and the Company plans to work over a further two wells this year, which should enable production levels to be maintained. The Company is expecting to ship the annual cargo in July/August, the same as last year.

Edited from press release by Angharad Lock

Read the article online at: https://www.hydrocarbonengineering.com/refining/15032016/urals-energy-announces-operational-update-2234/