Urals Energy Plc Regulatory News (UEN)

22 Apr 2008 13:48

Urals Energy Public Company Limited22 April 2008 Urals Energy Public Company Limited ('Urals Energy' or the 'Company') Sale of Non-core Assets Urals Energy Public Company Limited (LSE: UEN), a leading independentexploration and production company with operations in Russia, reports the saleof certain of its non-core assets in the Komi Republic. As announced on 28 November 2007, the Company is in the process of streamliningits portfolio to focus on its major assets in East Siberia. In furtherance ofthese objectives the Company is pleased to announce the sale of certain of itsassets in the Komi Republic of Russia to a private third party buyer for a grossprice of US$93.5 million payable in cash, adjusted for current working capital.The principal asset sold is the Company's Dinyu limited liability company, butincluded are Russian limited liability companies Michayuneft, Nizhne OmrynskoyeNeft, Verchne Omrynskoye Neft and Voyvozh Neft. The total proved and probablereserves for Dinyu and Michau, according to the Company's most recent reservereport by DeGolyer & MacNaughton, are 21.8 million barrels of oil. NizhneOmrynskoye, Verchne Omrinskoye and Voyvozh have C1+ C2 reserves of 27.8 millionbarrels of oil according to the Russian State reserves records. Following the completion of this transaction both parties intend to cooperatefurther, with Urals Energy marketing the oil produced from the fields owned bythe companies sold, charging a marketing fee to cover its costs in connectionwith the oil sales. The rationalization of these non-core assets will enable the Company toconcentrate more of its human, technical and financial resources on its EastSiberian assets, including the Dulisminskoye Field, acquired in 2006, and itspreviously announced acquisition of up to 39.5% of Taas-Yuriakh Neftegazodobycha("Taas"). The net proceeds of the sale will be used to support the continued developmentof the Company's assets and for general corporate needs. The Company continues to evaluate possible disposals of other non-core assets. Director Resignation The Company also announces that Bob Maguire has given notice of his resignationfrom the Board of Directors. Mr. Maguire will leave his position as anon-executive director with effect from 1 May 2008, in order to devote more timeto his other business interests which have increased since he came on the UralsBoard. The Board will seek to replace Mr. Maguire with another non-executive directorin due course. Leonid Dyachenko, Chief Executive Officer, commented: "The sale of these assets demonstrates Urals' commitment to the stated strategyof streamlining its portfolio to focus on East Siberia. We can now deploy ourresources to fully exploit the excellent assets we have in that region. "We also want to thank Bob Maguire for his valuable insight and assistanceduring the last year when we undertook the largest acquisition in the Company'shistory. We understand his desire to focus on his business interests and wishhim well." 22 April 2008 Enquiries: Pelham PRGavin Davis +44(0)20 7743 6677 / +44(0)7910 104 660Evgeniy Chuikov +44(0)20 3008 5506 / +44(0)7894 608 606 This information is provided by RNS The company news service from the London Stock Exchange