The Board of Urals Energy, the independent exploration and production company with operations in Russia, announces the resignation of Alexei Maximov as the Company’s Chief Executive Officer, with effect from 31 October 2014. Alexei Maximov will also stand down as a Director of the Company with effect from the same date. The Board will commence the search for a new Chief Executive Officer shortly and further announcements will be made at the appropriate time.
The Board would like to thank Mr. Maximov for his years of service to the Company and would like to place on record their thanks to him for his contribution.
Leonid Dyachenko and Aleksey Ogarev have also indicated to the Board today that they intend to stand down as Directors of Urals Energy once appropriate replacements have been identified and appointed.
The Board is in discussion with Adler Impex S.A. (“Adler”), currently the largest shareholder of Urals Energy, about the appointment of two new Directors of the Company.
Ingeborg Srenger (non-executive Director), Stephen Buscher (non-executive Director) and Andrew Shrager (Chairman) will remain in place on the Board.
It is proposed the Sergey Uzornikov will be appointed as interim Chief Executive Officer and a further announcement will be made at the appropriate time.
The Board also wishes to provide shareholders with the following update in relation to the Group’s immediate core priorities, which are to:
Undertake a comprehensive review of the drilling programme at Petrosak to stabilise production and optimise refinery outputs to maximise local market net backs;
prepare and implement a new development programme for ArticNeft to bring forward production from the identified proven undeveloped reserves set out by Miller & Lents in their recent report (details of which have been announced previously). This development programme will focus on raising production levels substantially and improving the profitability of ArticNeft;
Improve investor perceptions and understanding of the Company’s stable financial position and potential of its assets; and
Identify potential acquisition opportunities within Russia that combine existing oil production with potential for adding reserves, as well as refinery opportunities that can be integrated with oil production.
The Company will also seek an early withdrawal of the Alleged Debt Repayment Agreement or seek a more rapid legal solution to this issue which has deflected the Company’s management and resulted in the Company incurring significant costs over the last year.
Commenting Andrew Shrager, Chairman of Urals Energy said: “I would like to place on record my thanks to Alexei Maximov for his contribution to the Company and its shareholders over the last five years. The changes to our Board and management will help reduce the Company’s overheads and ensure we have a team in Moscow that is focused on our priorities for the next three years. We will be recruiting a new Chief Executive Officer as soon as is practicable.
“In the near term the Company will have to cope with a lower oil price, rouble devaluation, and potentially rising rouble inflation that can be expected to follow. The management will report back to shareholders on our progress on a regular basis.
“The Board is pleased to be working with Adler Impex, a 44% shareholder in the Company, on implementing the Company’s strategy and the identification of new Directors to join the Urals Energy Board.”
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