Urals Energy’s oil production totalled 756,690 barrels in 2016 and the board has started to investigate potential partnerships to finance and share risk in the execution of its development plans.
Production excluding almost four months of production from its new subsidiary, Arctic Oil (which was acquired on 5 September), was 716,873 barrels, which represents an increase of 6.1% over the group’s total production of 675,317 barrels in 2015.
At the end of 2016, the total volume of commercial crude produced on Kolguev Island was approximately 155,000 barrels.
As announced previously, the company plans to make two cargo deliveries from our Kolguev sea terminal this year, most likely in or around June and during October. It said improvements in the quality of its refined products via the use of new additives and an increased competitiveness of its products in the local market on Sakhalin Island resulted in sales volumes at Sakhalin (in tons) increasing by 12.7% in the fourth quarter of 2016, when compared to the corresponding period in 2015.
Chairman Andrew Shrager said: “With the recovery in the oil price to a range of $50 to $60 per barrel, we believe that now is the right time to start making preparations for a significant step up in the development of our reserves, both those that are long-held and those resulting from our recent acquisitions and new licence awards.
“The Development Plans are the first step in this process and we hope to have these approved during the course of this year.
“We will proceed with caution, keeping sufficient flexibility in the plans to avoid the risk of over expansion in what is likely to remain a volatile oil market.”
At 4:10pm: (LON:UEN) Urals Energy PLC share price was +0.38p at 4.25p
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