Urals Energy to Decommission Idle Wells in Verkhneomrinskoye License

Urals Energy confirms that Kominedra, the subsurface resource agency in Komi Republic, has ordered the Company's subsidiary Verkhneomrinskaya Neft to start decommissioning inactive wells within the Verkhneomrinskoye oil license (the License). The License was part of the Arcticneft acquisition package in 2006 and was a peripheral part of the overall acquisition. No oil production activity has been undertaken since the acquisition. As such, Kominedra included a statement in its order to suspend temporarily production and exploration activities for three months.

The Company through its subsidiary plans to maintain the lease for potential use as Urals contemplates divestures. The decommissioning of these wells will not affect overall operations or financial performance.