30th Sep 2014 14:16
LONDON (Alliance News) - Urals Energy Public Co Ltd Tuesday said it continues to look for acquisitions in Russia and has not been affected by the crisis in Ukraine.
The company reported a USD1.2 million pretax loss for the six months ended June 30, narrowed from a USD2.5 million loss in the comparable period in 2013.
Revenue increased to USD18.9 million in the first half from USD17.8 million in the same period in 2013. Revenue increased as a result of an increase of sales volumes, totalling 209,564 barrels, compared with 184,861 barrels for the first-half of 2013.
The six months ended 30 June were characterised by a stable crude oil market price at an average level of USD109 per barrel, compared to USD108 in 2013. Domestic prices for light oil products ranged from USD113 to USD137 per barrel, Urals said.
Urals has two operations - Arcticneft and Petrosakh - both based in Russia.
"During 2014, the company continued its activities at both fields aimed at stabilising production in an attempt to curb the natural decline by implementation of workovers and drilling of new wells, which are planned to be finished by the year-end," said Chief Executive Alexei Maximov.
"At ArcticNeft the annual tanker shipment is planned for mid-October. Final preparations are being implemented, contracts have been signed and the vessel has been chartered," he added.
Current daily production at Arcticneft is 690 barrels of oil per day, slightly higher than the average of 660 barrels of oil per day for the six months ended 30 June 2014. Current daily level of production at Petrosakh is 1,202 barrels of oil per day, compared with an average of 1,163 barrels of oil per day for the six months ended 30 June 2014.
The company continues to implement measures to halt natural decline at Petrosakh and Arcticneft, including the completion of successful workovers that have stabilised production, said the company in a statement.
"The board continues in its search for possible acquisition opportunities and has evaluated a number of such potential acquisitions in 2014. Given the overall investing climate towards Russian companies and the overall industry slow-down, we have still not found the 'right fit' and will continue to seek new opportunities," said Maximov.
"Aside from the macro-economic environment in Russia caused by the geo-political crisis in Ukraine, the board does not consider that this will have any immediate impact on the company's day-to-day operation," he added.
Urals' shares were down 3.5% to 3.50 pence per share Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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