Urals Energy: Okruzhnoye P1 Reserves Recalculated and Increased by 264%
The Board of Urals Energy (AIM:UEN), the independent exploration and production company with operations in Russia, provides an minor update to the Competent Person’s Report (“CPR”) that was recently prepared by Blackwatch Petroleum Services Limited (“Blackwatch”). The Executive Summary of the CPR was announced on 11 May 2018.
The main change under Blackwatch’s latest assessment is that the remaining 1P Proved Reserves for Petrosakh’s Okruzhnoye licence have been increased from 1.1 million barrels to 2.9 million barrels, due to a redefinition of Reserves between Proven Reserves and Probable reserves. This adjustment has led to changes in the Reserves columns and the Reserves totals, which is reflected in the updated summary table below.
Table ES-2 Blackwatch Reserves and Resources Estimates for Urals Assets (Updated)
Original Recoverable Reserves Prior to Production (MMSTB) | Cumulative Production as of 31/12/2017(MMSTB) | Gross Remaining Reserves as of 31/12/2017 | Urals Interest in the Licence | Net attributable Remaining Reserves as of 31/12/2017 | Operator | |||||||
Proved (1P) | Proved +Probable (2P) | Proved +Probable +Possible (3P) | 1P | 2P | 3P | 1P | 2P | 3P | ||||
Okruzhnoye Total | 26.6 | 40.6 | 67.4 | 23.76 | 2.9 | 16.9 | 43.7 | 98.56% | 2.81 | 16.61 | 43.02 | Petrosakh |
South Dagi Total | 2.9 | 20.9 | 38.3 | 0.00 | 2.9 | 20.9 | 38.3 | 98.56% | 2.86 | 20.61 | 37.79 | Petrosakh |
Okruzhnoye & South Dagi Combined | 29.5 | 61.5 | 105.8 | 23.76 | 5.8 | 37.8 | 82.0 | 98.56% | 5.67 | 37.22 | 80.81 | Petrosakh |
Babaevskiy Total | 1.0 | 10.8 | 13.7 | 0.00 | 1.0 | 10.8 | 13.7 | 100% | 1.00 | 10.80 | 13.66 | BVN Oil |
Peschanoozerskoye Total | 58.7 | 76.8 | 96.3 | 17.85 | 40.8 | 59.0 | 78.4 | 100% | 40.84 | 58.97 | 78.43 | Articneft + ANK |
In due course the Company intends to publish the Executive Summary of the updated CPR on the Company’s web site – www.uralsenergy.com
Mr Vasily Nikoluk, Urals Energy’s Chief Geologist, a graduate of the Ivano Frankivsk University and the former head of the geology department at Gazpromneft, who meets the criteria of a qualified person under the AIM Guidance Note for Mining, Oil and Gas Companies, has reviewed and approved the technical information contained within this announcement.
Appendix
Glossary of Technical Terms
Reserves Categories:
(Source: http://www.spe.org/industry/docs/Petroleum_Resources_Management_System_2007.pdf – pages 28 & 29)
Proved reserves are those quantities of petroleum, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations.
Probable reserves are those additional Reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves.
Possible reserves are those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recoverable than Probable Reserves.
1P – Taken to be equivalent to Proved Reserves; denotes low estimate scenario of Reserves.
2P – Taken to be equivalent to the sum of Proved plus Probable Reserves; denotes best estimate scenario of Reserves.
3P – Taken to be equivalent to the sum of Proved plus Probable plus Possible Reserves; denotes high estimate scenario of reserves.
Prospective Resources Categorization
Source: http://www.spe.org/industry/docs/Petroleum_Resources_Management_System_2007.pdf – pages 31, 39 & 37
Low (P90) resource: With respect to resource categorization, this is considered to be a conservative estimate of the quantity that will actually be recovered from the accumulation by a project. If probabilistic methods are used, there should be at least a 90% probability (P90) that the quantities actually recovered will equal or exceed the low estimate.
Best (P50) resource: With respect to resource categorization, this is considered to be the best estimate of the quantity that will actually be recovered from the accumulation by the project. It is the most realistic assessment of recoverable quantities if only a single result were reported. If probabilistic methods are used, there should be at least a 50% probability (P50) that the quantities actually recovered will equal or exceed the best estimate.
High (P10) resource: With respect to resource categorization, this is considered to be an optimistic estimate of the quantity that will actually be recovered from an accumulation by a project. If probabilistic methods are used, there should be at least a 10% probability (P10) that the quantities actually recovered will equal or exceed the high estimate.
Prospective Resources – those quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations.
Remaining Reserves and Resources – those quantities of petroleum (of any category) which are estimated, as of a given date, to be recoverable after deducting actual petroleum quantities that are already produced.
