Urals Energy buys two Russian independents

Russia

LONDON, November 19, 2015 – London-listed Urals Energy acquired Russian independent operators RK-Oil and BVN Oil on Thursday for a combined $5.3 million from owner and businessman Ilya Glebov.

The company will continue initial exploration operations through its new acquisitions but postpone development of the assets until oil prices rise.

Plummeting oil revenues and sanctions have hurt the Russian economy, with Gazprom’s revenues down by $40 billion in the first half of 2015. RK-Oil and BVN Oil have held exploration and production licences in Russia’s Komi region since 2014.

The sale of RK-Oil and BVN Oil increased Urals Energy’s share price by 2.5 percent at the London Stock Exchange on Thursday. The company already has experience in the oil-rich Komi region and will take over reserves of 24.1 million barrels of oil from BVN Oil and 25 million barrels of oil from RK-Oil under 24-year and 40-year licences, respectively.

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