Urals Energy Completes Dulisminskoye Acquisition
Urals Energy has completed its $148 million acquisition of 100 percent of the Dulisminskoye oil, condensate, and gas field in southern East Siberia, along with the nearby the LTK transportation and treating facilities.
The acquisition was announced on April 18, 2006, with the subsequent closing of a $209 million private placement to finance the acquisition completed on June 2, 2006. It significantly increases both reserves and production and creates a new core area for the company in the prolific East Siberian oil basin. DeGolyer and MacNaughton estimate the Dulisminskoye Field contains:
- net 2P (proved plus probable) reserve additions of 109.4 million barrels of oil and condensate and
- net 3P (proved, probable and possible) reserve additions of 196.3 million barrels of oil and condensate and 1.7 trillion cubic feet of gas.
Oil production is projected to peak in 2011 when the field is expected to produce at an average annual rate of approximately 29,000 BOPD.
Completion of this acquisition and the success of our capital raising are yet further examples of the progress Urals Energy is making this year," said William R. Thomas, Urals' CEO. We are on track to reach our production target of 13,000 bopd by the end of 2006 and 19,000 bopd by end of next year--an 80-percent increase in our initial 2007 production target stated at the time of the IPO in August 2005."
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