Probably for about 2 weeks until they borrow against the next oil shipment, this appears to be the perpetual way of financing operations for Urals but I guess it is better than borrowing from the banks or diluting the sp any further with CR's. They just need to start producing more oil for the sp to show signs of recovery.
An informative update to shareholders which is nice to see from an AIM company these days.
Long term this looks interesting and at current prices is worth a punt in my opinion, hence the weak buy. No strong buy as any oil play is risk in the current market but I like the look of this one at the moment.
Urals Energy (AIM:UEN), the independent exploration and production company with operations in Russia, has announced that production testing at Well #54 at Petrosakh has been completed.
The well is flowing at a stabilised rate of 350 barrels of oil per day ("bbls/day"). This raises total production at Petrosakh to 1,464 bbls/day, compared with an average of 1,088 bbls/day for the six months ended 30 June 2015 (a 34.5% increase).
The company is in the process of demobilising the drilling rig and this will be moved to the site of Well #109, which is expected to be spudded at the beginning of next month.
Current production at Arcticneft is 687 bbls/day compared with an average of 689 bbls/day for the six months ended 30 June 2015. Following the recent export shipment, two wells have been temporarily shut to allow for planned workovers and this has led to a temporary reduction in daily production which had reached 716 bbls/day in August.
Andrew Shrager, chairman, commented: "The Board are delighted with the initial results at Well #54. We will continue to work towards optimising our current assets, while assessing opportunities for future growth."
There are a lot of companies that really need the price of oil to go up.... Urals at the moment appear to have a strategy in place to survive at current levels. Hopefully the next big movement of the price of oil will be up not down further!
Just looking at the tanker shipment figures. (27,00 tonnes) 217,282 barrels. @ $46.12 per barrel = $10,021,045.84 (against loan of $6million)
Short term loan for $6mill secured in May on 17,000 tonnes of oil at Arcticneft.
So since May they have drilled a further 10,000 tonnes? (3months)
Do I see a very good drilling program here? or have I missed something?
Could there be some good news to come soon? Possibly a successful new well?
what is the basis for your anticipated rise of up to 400% within the space of 2 days? is it wishful thinking or is there any substance behind your expectations? It is about time something good started happening with this company as it has been many years of suffering to date. - cheers.
No idea. But debt free. Cash in the bank to the tune of 6 million. Awaiting results of latest drill. If all goes well. 20 is very possible. I expect 10-16 by 9am tomorrow. Then the results will dictate how far it may go.
Urals Energy PCL (AIM:UEN), the independent exploration and production company with operations in Russia, announces an update on its litigation with KNGF.
As announced on 30 January 2015, the Company has won its case against the appeal made by KNGF in the matter of its outstanding loan to KNGF, equivalent to approximately US$500,000. Urals had expected the court in the first instance to issue the order for its collection. However, Urals Energy understands that KNGF has filed a second appeal with the cassation court and submitted a motion to stop enforcement of the debt. Further announcements will be made at the appropriate time.
Adler at 45% - Latvia P Bank at 19% - Sberbank at 7.5% - JP morgan 5% - Petraco 3.5% - Management 5.5% - BNP paribas 2.5%
Private investors have been flushed out of this share with less than 13% holding
take off balance sheets out of this game ( solve Roveikno ) and this will be delisted
The majors are investors also and want a good return for their funds.
They do NOT run E&P companies they INVEST in them!
The drop in crude prices has little or no effect on the share prices of E&P companies check them if you want proof. How many have crashed solely as a result of low oil prices?
Crude has always been volatile it is the nature of the oil market. Multinational oil companies stop production as soon as it starts to cost more to extract the crude than they can sell it for and that is when the tiddlers who have been beavering away exploring etc., come in to their own as the price shoots back up over $100. It has always been the case and it will remain so in the future.
apologies for any confusion, cy will be delisted = Adler bidding for remaining shares in collaboration with other institutional/fund holders = T/O bid ( just wonder at what price level?? due to oil price collapse
UEN is worth today 30 cents a barrel as the value of a barrel of oil in the ground depends on
the time taken to get it above ground. UENl's reserves are being depleted at 2.36% a
year; a barrel of UEN is being sold in 29.0 years. If one discounts the receipts at 10%, the present value of UEN's production is about 5% of the well-head value. If one
discounts UENl receipts by 15%, which may not be an excessive allowance for capital
scarcity, the present value is a little under 1%.
This explains why there is a huge gain in applying money and know-how to deplete the UEN
reserves more quickly. One can only hope that UEN will accept that time is money, and that they are better off with a less-than-perfect share of the gains than with holding on to a sterile ownership.
If 10 to 12p would do you nicely why didn't you sell last month when it went above that - or did you only buy when it went back down the tubes? I want 20p for all the f'n heartache they have put me through over the years. 10 to 12p just aint gonna cut it.
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