Urals Energy makes decent operational progress

6th Aug 2018 15:06

(Sharecast News) - Independent exploration and production company Urals Energy updated the market on its recent operations on Monday, reporting that the drilling of ots planned exploration well, 'well 1', at the South Dagi field on Sakhalin Island had reached a depth of approximately 1,400 meters.The AIM-traded firm said that around 20 days of operation had been lost for separate minor technical reasons, although it said drilling was now advancing at a rate of 30 to 50 meters per day.It said well 1 had a target depth of 2,200 meters, with the well's target pay horizons being the Okobycay and the Daginsky neogenic horizons.The board said it anticipated that the drilling of well 1 would be completed and tested by the second week of September.On the subject of its tanker payment, Urals said that further to its announcement on 20 July, it had now received payment from Petraco Oil Company following the tanker shipment in mid-July."The pre-export short-term loan finance arrangement provided by Petraco Oil Company, as detailed in the company's announcement of 24 May, including accrued interest, has now been settled in full," the board confirmed in its statement.Urals Energy said it anticipated that the second 2018 tanker loading for Articneft would be in November, with a target of up to 20,000 tons of special light crude oil, or 158,000 barrels.The company also said that its Petrosakh subsidiary acquired a 23% voting interest in the Kholmsk commercial seaport, which is situated on the Western side of Sakhalin Island.Urals Energy's interest in the Kholmsk commercial seaport was comprised of 17,858,826 ordinary shares, out of a total of 64,940,000 ordinary shares that are in issue, and 2,262,000 preference shares, out of a total of 21,646,000 preference shares that are in issue."The seaport has bunkering facilities to supply fuel oil to shipping fleets and ferries, which are the main users of the seaport."The group's refinery at Petrosakh on Sakhalin Island refines all of the company's crude oil production on the island, including producing fuel oil."The board has therefore made the investment in the Kholmsk commercial seaport to assist with marketing its diesel and fuel oil directly to end users."Urals Energy said it already had a bunker fuel sales operations at Kholmsk, which would benefit from the investment.It said it intended to seek to appoint three representative directors to the seaport's board, out of a total board of seven directors, at a forthcoming general meeting to be held on 27 August."The company purchased its 27.5% interest in the ordinary shares and its 10.45% interest in the preference shares from an individual, Dmitry Vasilevich," Urals said in its statement."In addition, the company has acquired RUB 8.46m of the Kholmsk commercial seaport's outstanding debt under an assignment agreement from its creditor, Enhance NDS."Urals said the total consideration for its investment in the seaport was approximately RUB 119.5m, which was currently equivalent to approximately $1.9m.