21st Nov 2013 11:56
LONDON (Alliance News) - Urals Energy PLC Thursday said drilling at its well in the Petrosakh field on Sakhalyn Island has been completed and is producing around 70 barrels of crude oil per day.
The oil company operating in Russia plans to continue developing Well #53, which it hopes may increase the flow rate of oil over time.
Preparation works for drilling Well #112 are now being finalised with an update expected in due course.
Following an operational update earlier this month, Urals said it wanted to clarify the reasons why shipment at Articneft on Kolguyev Island was not as large compared with 2012.
The exploration and production company said a tanker left Kolguyev Island on November 9 with 25,008 tonnes of crude, or roughly 198,537 barrels.
However it said close to the end of the loading process, the hose to the tanker was torn off by high winds and waves.
Given the prevailing storm conditions and in order to avoid spillage, a decision was made to cease further attempts to re-connect and cancel the loading of the remaining crude, Urals said.
Furthermore, because the storm was forecast to last for several days, a decision was made for the tanker to leave in order to avoid unnecessary demurrage.
Urals also said no further developments have been made regarding its debt repayment case with UEN Cyprus Limited.
Last month, Urals said it did not believe a debt repayment agreement document it received from UEN Cyprus was a genuine document and instead was being used to influence shareholders over takeover bids.
Urals subsequently set up a committee to investigate the case, which came to the same conclusion.
"The company did not enter into the Alleged Agreement and has no liability thereunder. Since the announcement made by the company on 23 October 2013, there have been the following further developments," Urals said.
The stock was trading at 10.82 pence Thursday morning, up 0.07 pence or 0.7%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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