Urals Energy's shares storm despite weather disrupting Pacific project

Urals Energy saw its shares jump over 10% on Tuesday despite experiencing delays in the completion of its first well at the South Dagi programme.

The AIM-traded Russian-focused exploration and production company’s project on Sakhalin Island in the north Pacific Ocean has seen problems with bad weather and the mobilisation and operational set-up of a newly acquired rig which is meant to be drilling four wells at the site.

As such, the company predicts that the first well will now not be completed until July.

Urals Energy is targetting "in excess" of 1,000 barrels of oil per day from the planned wells, with the first existing well tested having achieved daily oil volumes of approximately 225 barrels a day during testing.

Furthermore, a smaller capacity rig has started a workover programme on the existing wells.

Andrew Shrager, chairman of Urals Energy, said: "Despite the delays with Well 1, the results of the first well workover on the South Dagi licence are encouraging, in terms of achieving a level of production that is consistent with our target for the initial development programme."

As of 1603 BST, Urals Energy’s shares were up 10.53% at 105.00p.