Another FSU oiler that has come under Mitvol's wrath,which has been reputed.
Of 4 analysts 3 buy and one overweight,presently to buy 271.5p(i,m in).20day average 295.55p 52 week 352p.Have similar agreements with both Gazprom and Transneft,presently producing 9170bopd and confident of reaching 10,000bopd
year end.




Phttp://www.investegate.co.uk/Article.aspx?id=200710030904330420F
cyril

Topped up this am,i feel it's now a lot safer to do so.latest update
cyril

Highlights from the 8th Annual Oil & Gas Week: Urals Energy

UEN LN: BUY, target price: GBP0.37

Urals Energy presented at Renaissance Capital's 8th Annual Oil & Gas week in Moscow yesterday (8 Nov). The company confirmed that its key priority for 2010 has been to achieve operating efficiency at its two remaining assets, while before its strategy was focused on debt and asset restructuring. The key points of the presentation include:

- As a result of its focus on operating efficiency, Urals Energy has reduced its head-office headcount from 120 people to just 20 people, while opex and overhead expenses at Petrosakh are down 13% in 1H10 and are down 44% and 55%, respectively, at Arcticneft.
- The company's development strategy envisages effectively doubling oil output from 2.3kbpd to about 4.9kbpd by 2012 through three new sidetracks and development wells at Petrosakh, five new development wells at Arcticneft and optimisation of waterflooding and well servicing.
- The company is looking at ways to better utilise its asset base through raising its production level, by participation in a potential auction for an exploration licence on Kalguev island (near Arcticneft), and potentially acquiring upstream assets on Sakhalin Island (near the Petrosakh production facilities).
- The company is confident that it can repay a $7mn debt obligation before year-end to Petraco, given that the proceeds just from shipping crude from Arcticneft last month amounted to over $7mn. Management also thinks the loan to Taas-Yuriakh (about $36mn) could be repaid ahead of schedule, subject to Sberbank's successful sale of this asset.

We think that Urals Energy presents a very interesting turnaround opportunity, while the current share price does not fully reflect value creation from the companys recent efforts. The fundamental value of its asset base (59.6mn bbls of 2P) is clearly more than the current market cap of about $40mn, with M&A deals or more aggressive production growth as the two most likely options to unlock this hidden value, in our view.

..........so it seems that Urals ARE starting to PR their company, where it really counts, back in the USSR ))

The following is just the 1st page of the Allenby report,although since publishing the SP has risen and i make the value of 2P oil reserves at $0.77 a barrel.
cyril

Urals Energy PCL (UEN.L)

Major re-rating potential

We see Urals as a play on a development programme that has the potential to drive shipments and cash flow powerfully through 2012. Longer term there could also be exploration upside. Urals is decidedly modestly valued even from a Russian perspective. It sells on about 2X 2011 operating cash flow, $0.6/barrel of 2P reserves and 35% of our NPV derived valuation of 35p/share. The valuation has been depressed by Urals troubled history which in 2009 culminated in a radical restructuring programme. Once evidence of a performance turnaround becomes apparent, Urals has the potential for a major re-rating.
Production gathers pace Crude oil production has shown clear signs of firming in recent months from the depressed levels of late 2009 and early 2010. In mid September production was running at 2,320 b/d against an average of 2,084 b/d in the six months to June 2010. Production is now benefitting from stepped-up well refurbishment activity. A three-well sidetrack drilling programme commenced at the Petrosakh operations in June 2010 and should start boosting output in the fourth quarter. Three development wells are tentatively planned for the Articneft operations in 2011. Our scenario calls for production averaging 2,250 b/d in 2010, 3,000 b/d in 2011 and 3,500 b/d in 2012.
Exploration and development upside Urals has significant 2P reserves of 58mm barrels. Based on an earlier report by the petroleum consultants Degolyer & MacNaughton, there is no shortage of development opportunities on the existing properties. Urals has indicated that it is looking to expand this potential by bidding in the upcoming licensing round for the development of the Tarkskoye field, close to its Kolguyev Island operations. An application has also been filed to acquire exploration licenses in the same location.
Balance sheet now in good shape Balance sheet leverage has been sharply lowered following the restructuring programme of 2009 and early 2010. At the end of June 2010 there was net debt of $33.6m before allowing for certain non-trade receivables and payables. Including these items there was, in fact, net cash of $2.4m. Balance sheet leverage should decline noticeably in the second half of 2010 reflecting the pronounced seasonality in shipments. By year end we expect net debt on the narrow definition to be down to about $23m for a debt:equity ratio of 31%.
Valuation upside The Urals valuation basis of $0.6/barrel of 2P reserves constitutes a substantial discount to the benchmark for Russian E&P plays of $2 to $3/boe. Providing performance gathers momentum as expected we see scope for a significant narrowing of the discount over the

RNS out,nowhere near as bad as SP reaction would suggest,once the traders have been seen off we should start to climb?
imho
cyril

18 November 2010

Urals Energy Public Company Limited
("Urals Energy" or the "Company")

Settlement of First Petraco Installment and Operational Update
Urals Energy (LSE: UEN), an independent exploration and production company with
operations in Russia, announces that it has settled the first US$3 million
tranche due to Petraco Oil Company ("Petraco"), in accordance with the
Restructuring Agreement dated 12 April 2010. The settlement was made by means
of an off-set of Petraco debt to the Company for the crude oil delivered in
October 2010 from the Company's Arcticneft operations.
Drilling results
As was reported on 10 November 2010, the Company has completed drilling its
first side track well 35b at Petrosakh. The well was perforated in the interval
from 1,470 meters to 1,535 meters. Tubing was lowered to a depth of 1,478
meters, where material accumulated in the hole as a result of the
lost-circulation encountered while drilling through the pay zone prevented the
tubing from being run further down the hole.
The board is pleased to announce that the well is currently flowing naturally at
a rate of 20 tons per day (152 BOPD) with an 8% water cut on a 19mm choke. The
well has produced for six days and is still flowing back drilling fluid and
cuttings, as a result of the lost circulation encountered while drilling through
the pay zone. The Company will continue working towards removing the lost
circulation material from the well and commencing full scale production from the
perforated horizon. Considering the well's apparent high permeability,
(confirmed by the lost circulation in the pay zone), the Company will reassess
the use of pumps, or an upgrade in the pump type from the originally planned rod
pump to ESP should the well's final productivity warrant it. Further results of
performance of well 35b will be reported in due course.
Drilling of the next side track at Petrosakh will commence in January 2011,
given the time required for logistics, including bringing new drilling materials
to the site from the mainland.
Current production
Production at Arcticneft remains at a level of 712 BODP
Total current daily production, from both Arcticneft and Petrosakh stands at
2,475 BOPD

RNS out,nowhere near as bad as SP reaction would suggest,once the traders have been seen off we should start to climb?
imho
cyril

18 November 2010

Urals Energy Public Company Limited
("Urals Energy" or the "Company")

Settlement of First Petraco Installment and Operational Update
Urals Energy (LSE: UEN), an independent exploration and production company with
operations in Russia, announces that it has settled the first US$3 million
tranche due to Petraco Oil Company ("Petraco"), in accordance with the
Restructuring Agreement dated 12 April 2010. The settlement was made by means
of an off-set of Petraco debt to the Company for the crude oil delivered in
October 2010 from the Company's Arcticneft operations.
Drilling results
As was reported on 10 November 2010, the Company has completed drilling its
first side track well 35b at Petrosakh. The well was perforated in the interval
from 1,470 meters to 1,535 meters. Tubing was lowered to a depth of 1,478
meters, where material accumulated in the hole as a result of the
lost-circulation encountered while drilling through the pay zone prevented the
tubing from being run further down the hole.
The board is pleased to announce that the well is currently flowing naturally at
a rate of 20 tons per day (152 BOPD) with an 8% water cut on a 19mm choke. The
well has produced for six days and is still flowing back drilling fluid and
cuttings, as a result of the lost circulation encountered while drilling through
the pay zone. The Company will continue working towards removing the lost
circulation material from the well and commencing full scale production from the
perforated horizon. Considering the well's apparent high permeability,
(confirmed by the lost circulation in the pay zone), the Company will reassess
the use of pumps, or an upgrade in the pump type from the originally planned rod
pump to ESP should the well's final productivity warrant it. Further results of
performance of well 35b will be reported in due course.
Drilling of the next side track at Petrosakh will commence in January 2011,
given the time required for logistics, including bringing new drilling materials
to the site from the mainland.
Current production
Production at Arcticneft remains at a level of 712 BODP
Total current daily production, from both Arcticneft and Petrosakh stands at
2,475 BOPD

£2+ tomorrow?

Or maybe tomorrow!