Urals Energy: Petrosakh Well #54 Producing at 350 bbls/day, Arcticneft – Wells Shut in Due to Workover

Urals Energy PCL, the independent exploration and production company with operations in Russia, is pleased to provide the following operational update:

Petrosakh

Further to the update announced on 2 October 2015, the Company announces that production testing at Well #54 at Petrosakh has been completed. The well is flowing at a stabilized rate of 350 barrels of oil per day (“bbls/day”). This raises total production at Petrosakh to 1,464 bbls/day, compared with an average of 1,088 bbls/day for the six months ended 30 June 2015 (a 34.5% increase).

The Company is in the process of demobilising the drilling rig and this will be moved to the site of Well #109, which is expected to be spudded at the beginning of November 2015.

Arcticneft

Current production at Arcticneft is 687 bbls/day compared with an average of 689 bbls/day for the six months ended 30 June 2015. Following the recent export shipment, two wells have been temporarily shut to allow for planned workovers and this has led to a temporary reduction in daily production which had reached 716 bbls/day in August 2015.

Andrew Shrager, Chairman commented: “The Board are delighted with the initial results at Well #54. We will continue to work towards optimizing our current assets, while assessing opportunities for future growth.”