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RNS Number : 7870O

Urals Energy Public Company Limited

23 September 2011

Urals Energy Public Company Limited

("Urals Energy" or the "Company")

23 September, 2011

Development Well #51 Drilling Results

Urals Energy (LSE: UEN), the independent exploration and production company with operations in Russia, announces the results of development Well #51 at Petrosakh, on the eastern coast of Sakhalin Island.

During the first half of 2011 development Well #51 was spudded. Target depth of 1,650 meters was reached in July 2011. However, as a result of difficult geological conditions, while preparing to run a production string, drilling equipment jammed the well, which prevented completion.

A decision was subsequently made to test the upper horizon and a moderate flow rate of 37 BOPD was recorded, confirming productivity of the well. Consequently, a parallel well was drilled from a depth of 1,370 meters. However, at a depth of 1,460 meters the decision was made to plug and temporarily abandon Well # 51 due to the difficult drilling conditions.

A further drilling update will be contained in the Company's interims which the Board envisages will be released in the next few days.

Commenting on today's announcement, Alexei Maximov, CEO, said;

"This is clearly a disappointing result but we took the well as far as was prudent and believe that our decision to temporarily abandon it at this stage is the correct one. Production at the other wells in Petrosakh and Arcticneft continue to deliver in line with expectations. We look forward to updating the market more fully at our half year results in the near future."

Enquiries:

 
 Allenby Capital Limited 
  Nominated adviser and broker    +44 (0)20 3328 5656 
 Nick Naylor 
 Alex Price 
 
 Pelham PR                        +44 (0)20 7861 3232 
 Mark Antelme 
 Maria Blank

This information is provided by RNS

The company news service from the London Stock Exchange

END

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