Russia-focused energy company Urals Energy announced Wednesday that it has been granted an 18.8 square mile expansion to the boundaries of its Arcticneft license area, following a royalty payment of RR27.5 million ($443,630) to the Russian regulatory authorities.
As a result of the expansion, Urals Energy's Arcticneft license area now covers a total of 61.2 square miles. The company has stated that it will undertake geological studies in the new license area, which has Russian State Registered ABC1 reserves of 10.3 million barrels of oil. These reserves figures have not been reviewed in accordance with the AIM Guidance Note for Mining, Oil and Gas Companies. As such, the company plans to get a competent person review undertaken “as soon as practicable”.
Commenting on the latest development, a Urals Energy statement said:
“The acquisition of this additional license area is consistent with the company's stated strategy, as set out in the company's recent interim results announcement. This strategy involves the acquisition of additional license areas in Russia for modest initial payments, with limited initial obligations and where the company has knowledge of the area concerned.”
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