Update on group structure

24 April 2017

Urals Energy PCL ("Urals Energy" or the "Company")
Update on group structure

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).

The Board of Urals Energy (AIM:UEN), the independent exploration and production company with operations in Russia, is pleased to announce that it has completed an internal reorganisation of its subsidiaries, which is intended to streamline the management of the Group and allow the Group to take advantage of modest tax advantages.

As part of the internal reorganisation, GJSC Petrosakh, the Group's operating company on Sakhalin Island and principal profit and cash generator, has been merged with Urals Energy LLC, the Russia-incorporated management company for all of the Group's operations, which is essentially a cost centre.

As a result of this merger, the Board believes that the Group will be able to offset the costs of Urals Energy LLC against the future profits of GJSC Petrosakh's operations for tax purposes. Previously, Russian tax rules have not allowed the Group to charge management fees between Group companies and this has added to the tax losses in Urals Energy LLC.

 

For further information, please contact:

Urals Energy Public Company Limited
Andrew Shrager, Chairman
Leonid Dyachenko, Interim Chief Executive Officer
Sergey Uzornikov, Chief Financial Officer
Tel: +7 495 795 0300, www.uralsenergy.com

Allenby Capital Limited, Nominated Adviser and Broker
Nick Naylor / Alex Brearley
Tel: +44 (0) 20 3328 5656, www.allenbycapital.com

 

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