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Urals Energy PCL (UEN)

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Friday 09 November, 2018

Urals Energy PCL

Tanker and other updates

RNS Number : 9574G
Urals Energy Public Company Limited
09 November 2018
 

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR). 

 

 

9 November 2018

Urals Energy Public Company Limited

 

("Urals Energy", the "Company" or the "Group")

 

Tanker and other updates

 

 

Further to the Company's recent announcements, the board of Urals Energy (the "Board"), the independent exploration and production company with operations in Russia, provides the following updates.

 

Tanker update

 

The tanker shipment for export from the Company's Arcticneft operations on Kolguyev Island has been completed.  The tanker has left Kolguyev Island with a gross volume of 19,946 tons of special light crude oil (an equivalent of approximately 157,111 barrels). 

The Company will, in due course, confirm:

i.        the gross price per barrel for this tanker shipment.  This pricing will be based on the arithmetic average of the quotations for Brent DTD published in "Platts Crude Oil Marketwire" for the and 6th to 10th days following the date of the bill of lading.  The date of the bill of lading is 6 November 2018; and

 

ii.       the net proceeds from this shipment, after taking into account all duties and taxes, transport costs, demurrage and similar charges (and the repayment of the loans due to Petraco). 

 

As noted in the Company's announcement of 1 November 2018, the Board cautions that the net cash available to the Group from the tanker shipment is likely to be minimal or marginally negative after repayment of loans from Petraco totaling US$9 million (being the pre-export short term loan of US$5 million announced on 10 September 2018, a further immediate loan of US$4 million provided prior to loading to cover export duty etc) and cash required for operations over the Winter on Kolgyev Island.

Accountants' reviews

 

Further to the Company's announcement of 1 November 2018, the reviews by the independent firm of accountants are ongoing.  The reviews are examining:

 

i.        any transactions by Urals Energy's 98.56% owned subsidiary, JSC Petrosakh, since 30 June 2018 that are outside of the ordinary course of business; and

 

ii.       the short-term working capital requirements of the Group for the forward-looking period to 30 June 2019.

 

Following completion of the reviews, the Board will seek to agree with Mr Kononov the next steps with regard to rectifying the unauthorised transactions undertaken by JSC Petrosakh, details of which were announced on 1 November 2018 and 15 October 2018.

 

South Dagi drilling activities

 

As noted in the Company's announcement of 27 September 2018, the full testing of Well No 1 was delayed due to a collector pipe becoming stuck in the well.  The removal of this pipe requires special equipment, which has not yet arrived at Sakhalin Island. 

 

Group working capital

 

The Board believes that the outlook regarding the Group's working capital position remains substantially unchanged since the Company's announcement of 1 November 2018.  The Board believes that the Group's working capital position remains highly constrained and remains subject to a number of variables.  The Board believes that the Group will continue to face a working capital deficit of at least approximately US$3 million in the coming months, unless the unauthorised transactions (as referred to in the Company's announcements of 1 November 2018 and 15 October 2018) are reversed. 

 

Further announcements will be made as appropriate.

 

 

- Ends -

 

For further information, please contact:

 

Urals Energy Public Company Limited

 

Andrew Shrager, Chairman

Leonid Dyachenko, Chief Executive Officer

Tel: +7 495 795 0300

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 [email protected] or visit www.rns.com.
 
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