Side Track Well Drilled at Petrosakh

Urals reported that the drilling of the side track well, 35b, at Petrosakh, Russia, has now been completed and completion activities are being undertaken. Final flow rates will be announced next week once these have been fully assessed by the Company's management. Current daily levels of production at Petrosakh are 1,611 BOPD. 

The loading of the second tanker in the amount of 25,999 metric tons at Arcticneft has also been completed. The price for the tanker was set at the level of the October average price of $82.744 and a premium of $1.020/bbl. The full tanker was shipped before November 1, 2010 therefore meaning the company paid export duty at a lower rate of $266.5/mt instead of $290.60/mt, which is the November average price.

Proceeds of the sale will be received within a week and a repayment of $3 million will be made to Petraco in line with amended debt repayment structure previously announced. 

Further operational updates will be made as appropriate.