investor presentation · presentation in respect of its contents and the company is not acting in...

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Public Company Limited

Investor presentation

November 2017

2

Disclaimer

This presentation has is the sole responsibility of the directors of Urals Energy PCL (the “Company”). This presentation does not constitute a recommendation regarding the

shares of the Company nor a representation that any dealing in those shares is appropriate. The Company accepts no duty of care whatsoever to the reader of this

presentation in respect of its contents and the Company is not acting in any fiduciary capacity. The information contained in the presentation has not been verified, nor does

this presentation purport to be all-inclusive or to contain all the information that an investor may desire to have in evaluating whether or not to make an investment in the

Company.

No offer or invitation or solicitation of any offer to acquire securities of the Company is being made in connection with this presentation nor does this presentation constitute or

form part of any invitation or inducement to engage in investment activity under section 21 of the Financial Services and Markets Act 2000. No reliance may be placed for any

purpose whatsoever on the information contained in this presentation or any assumptions made as to its completeness and no warranty or representation is given by or on

behalf of the Company nor its directors, employees, agents, Allenby Capital and other advisers as to the accuracy or completeness of the information or opinions contained in

this presentation and no liability is accepted by any of them for any such information or opinions, provided that nothing in this paragraph shall exclude liability for any

representation or warranty made fraudulently. The information and opinions contained in this presentation are provided as at the date hereof.

The contents of this presentation must not be copied, published, reproduced, distributed or passed in whole or in part to others at any time by recipients, in particular to United

States residents, corporations, or other entities, US persons (as defined in Regulation S promulgated under the United States Securities Act of 1933 (as amended), persons

with addresses in the United States of America (or any of its territories or possessions), Canada, Japan, the Republic of Ireland, the Republic of South Africa or Australia, or to

any corporation, partnership or other entity created or organised under the laws thereof, or in any other country outside the United Kingdom where such distribution may lead

to a breach of any law or regulatory requirement.

This Presentation or documents referred to in it contain forward-looking statements. These statements relate to the future prospects developments and business strategies of

the Company and its subsidiaries (the “Group”). Forward-looking statements are identified by the use of such terms as “believe”, “could”, “envisage”, “estimate”, “potential”,

“intend”, “may”, “plan”, “will” or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements contained in

this Presentation are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or

implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Group’s actual results may vary

materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place any reliance on forward-looking statements.

These forward-looking statements speak only as at the date of this Presentation.

3 November 2017

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Urals Energy Public Company Limited

Company Cyprus-based E&P holding company

Country of operations Russian Federation

Assets 6 E&P licenses:

- North on Kolguyev island (2

licenses) - Arcticneft

- East on Sakhalin island (2

licenses) - Petrosakh

- Komi Republic (2 licenses)

Current production (average) 2,148 BOPD (1H 2017)

Exchange AIM, London (IPO in August 2005)

Ticker UEN

Shares outstanding 12,622,303

4

Area of operations

Moscow

Komi

5

Group structure 2017

Management and Oil Marketing

Urals Energy Public

Company Limited

Cyprus

Arcticneft

100%

Kolguev Island,

Barents Sea

BVN Oil

100%

Komi Republic

RK Oil

100%

Komi Republic

Arctic Oil Co

100%

Kolguev Island,

Barents Sea

Petrosakh

98.56%

Sakhalin Island

6

Group expansion – taking advantage of depressed valuations

Arcticneft

37.0

Petrosakh

7.6

1 January 2014 Miller & Lents

reserve report establishes 2P

reserves at 44.6 MM Bbl’s

Arcticneft

license

expansion

10.3

BVN

acquisition

14.9

2015 acquisitions plus expansions

add 25.2 MM Bbl’s * C1 & C2 reserves

plus resource credit at RK Oil

South Dagi

auction

17.7

AKN

acquisition

16.0

2016 acquisitions add 33.7 MM Bbl’s * C1 &

C2 reserves

* Note that Russian reserve classification for ABC1 & ABC2 are different

in methodology from the standards employed by Miller & Lents in their 2P

report and are not strictly comparable.

Average Price Paid

for New C1 & C2 Reserves

in 2015-2016

Equals $0.16 per Bbl

7

Assets overview

8

Petrosakh is a Russian closed joint stock company, incorporated in July 1991 to develop the

Okruzhnoe field on the eastern coast of Sakhalin Island

UEN acquired its ownership interest (98.56%) in Petrosakh on 19 November 2004. The

remaining minority ownership (1.44%) interest is held by the Sakhalin Oil Company

E&P License was renewed in 2012 until 2037. Total reserves at 30/06/2017 was:

– Russian classification BC1+C2 – 3.2 mln. tons (23.7 MMbbl)

– 2P reserves Miller & Lents (based on report dated 01/01/2014) – 7.2 MMbbl

In June 2016 Petrosakh was awarded a 25 year exploration and development license for the

South Dagi oil field on Sakhalin Island.C1+C2 reserves (Russian classification) of the new field

– 2.4 mln. tons (17.7 MMbbl)

Operates the only refinery on the island (c.4,200 bopd)

Premium quality, light oil (36.5 – 37.5°API) with low paraffin (1.08%) and sulphur (0.24%).

Crude sold with US$2-3/bbl premium to Dubai benchmark

HSE

– 300 employees

– Operations are in compliance with Russian safety standards and HSE regulations

Production of Petrosakh stands at a level of 1,116 BOPD (1H 2017)

All produced oil is processed and refined products are sold on the domestic market (Sakhalin

Island)

Petrosakh field and

refinery

Petrosakh - Overview

9

In-house drilling and oil field services – Equipment and machinery: 1 rig with a capacity of 100 tons (development

and sidetracking drilling up to 2000m) and 1 new rig a capacity of 180 tons (development and sidetracking drilling up to 3000m)

The only refinery on the island – Refining capacity of c.4,200 bopd with opportunity to expand – Wide range of oil products - producing diesel, gasoline, kerosene and fuel

oil

Additional flexibility – Oil processing facility with capacity of c.8,300 bopd – Export crude oil storage capacity of 300,000 bbl and an oil product

storage capacity of 64,000 bbl – Rail terminal and oil products tank farm facilities with capacity of 30,000

bbl in Yuzhno - Sakhalinsk – Existing storage facilities provide for accumulation of production all year

round

International sea terminal with direct access to export routes – Renewable license for handling hazardous goods, including oil and oil

products – Suitable for loading/unloading operations – Access for oil tankers from 6,000 to 30,000 ton deadweight – Allows export of up to 100% of crude and refined products – Cost effective option to upgrade to allow export of high margin refined

products

Petrosakh – Existing infrastructure

10

2017

Upstream

– Current well stock:

– Total 26 producing wells incl:

– 2 gas lift

– 3 natural flow

– 21 artificial lift

– Drill 1 step-out well and perform two well work-overs at South Dagi field

– Optimization of waterflooding and well servicing

– Develop and implement workover program to maintain production rate

Downstream

– Increase capacity utilization of refinery via possible increase of own production and third party processing

– Explore opportunities in higher margin export and domestic markets for refined products

– Further oil product marking strategy optimization - small wholesale market development

– Flexibility to sell all product domestically or gasoil to be sold locally on the island and the rest to compound for export

– Upgrade of refinery equipment to increase refinery yield and facilitate production of new products (gasoline 95 and

bitumen)

– Obtain marine terminal license to permit the sale of bunker fuel – a new higher margin use of the refinery’s heavy

residual product

Petrosakh – Development strategy

11

Arcticneft is a Russian closed joint stock company incorporated in 1998 in order to develop

the Peschanoozerskoe field (eastern and western parts)

UEN acquired 100% of Arcticneft in July 2005

E&P License valid till 31.12.2067. Total reserves at 30/06/2017 was (w/o license extension

and new acquisition):

– Russian classification BC1+C2 – 8.6 mln.tons (68.3 MMbbl)

– 2P reserves Miller & Lents (based on report dated 01/01/2014) – 36.8 MMbbl

In October 2015 the Company expanded the boundaries of the license area, followed by

increasing reserves base ABC1 by 1.3 mln.tons (10.3 MMbb)

In August 2016 Arcticneft purchased the entire share capital of Arctic Oil Company Limited

(ANK). ANK has an R&D license for the development of the central part of the

Peschanoozerskoe oil field C1+C2 reserves 2.0 mln. tons (16.0 MMbbl)

Located with direct route to European markets

High quality, light oil (46.7°API) with low sulphur content (0.075%)

Crude sold with an average premium of US$ 1.0 - 1.8/bbl to Brent

HSE

– 131 employees

– Associated gas is fully utilized

– Operations are in compliance with Russian safety standards and HSE regulations

Production of Arcticneft stands at a level of 1,061 BOPD (Q4 2016).

Additional average production from newly acquired assets 348 BOPD

Arcticneft - Overview

12

Downstream

– Oil refining unit, c.440 bopd

– Produces diesel, fuel oil and straight run gasoline

mostly for own needs and local sales points

Flexible facilities and infrastructure

– Oil treatment facility with capacity of 2,205 bopd

– Export crude oil storage capacity of 555,000 bbl and

oil product storage capacity of 50,000 bbl (including

oil storage capacity of newly acquired assets)

– Existing storage facilities allow accumulation of

production year round

Two sea loading points provides 100% export

capability

– Located directly off the coast and adjacent to the

field’s crude oil tank farm

– Allows Oil tankers up to 45,000 ton deadweight

Arcticneft – Existing infrastructure

13

Well Work Service Units

– APRS 40 – with rated capacity up to 40 tonnes – UPA 60/80 – with rated capacity up to 80 tonnes

Russian-made drilling rig «Uralmash-3D-76» – max depth of 5,000 m – provides options for exploration and production well drilling – capacity up to 260 tonnes – located on the field

Reservoir Pressure Maintenance System – water from an aquifer system of Middle Triassic deposits

containing high-pressure waters – water wells depth 1,300-1,400 m equipped with bottom-hole

pumps

Arcticneft – E&P Capability

14

2017

Well stock (Arcticneft)

- Total 27 active wells

- 3 free flow

- Artificial lift from most of the wells

Well stock (Arctic Oil Company)

- Total 27 active wells

- 2 free flow

- Artificial lift from most of the wells

Complex development and optimization of workover program, reactivation of idle production wells, development of an

effective program of geological, technical procedures and pressure maintenance (including newly acquired well stock of ANK)

Assessment of well stock efficiency of newly acquired property ANK plus re-entry of two idle wells

Installation of 8 jack pumps and implementation of work-over program to maintain stable production level

Modeling and assessment of fraccing potential for production rates, subject to favorable market conditions

Two export shipments (in June and October 2017) plus marine terminal cost minimization upgrade

*without newly acquired company

Arcticneft – Development strategy

15

RK Oil LLC incorporated in 2014 in order to develop the

Ordymsky license area which is located within the well-known

Omra-Soyvinskomu petroleum district in the Timan-Pechora oil

and gas province

E&P License valid till 31.12.2040

UEN acquired 100% of RK Oil in November 2015

Estimated recoverable oil reserves (C3 – possible) is 35.9

million tons (265.6 MMbbl)

Located with direct route to European markets and refinery

facilities:

– Refinery plant (Ukhta) – 150 km

– Transneft pipeline – 80 km

– Railroad station – 12 km

2017 planned work: interpretation of seismic and workover of

the existing well, drilling one exploration well

RK Oil - Overview

16

BVN Oil LLC incorporated in 2013 in order to develop the

Babaevsky license area, located within the well-known Velhiu-

Tebukskogo petroleum district in the Timan-Pechora oil and gas

province

2 licenses

– Exploration License valid till 31.12.2021

– E&P License valid till 31.12.2036

UEN acquired 100% of BVN Oil in November 2015

Recoverable oil reserves (C1+C2) is 2.2 million tons (16.3

MMbbl)

Exploration well was drilled in 2014-2015 which gave oil inflow

approx. 130 BOPD

Located with direct route to European markets and refinery

facilities:

– Refinery plant (Ukhta) – 70 km

– Transneft pipeline – 60 km

– Railroad station – 18 km

– Regional pipeline – within the plot

2017 planned work: interpretation of seismic, study and treatment

of all available geological and geophysical data

BVN Oil

BVN Oil - Overview

17

RK Oil & BVN Oil Development strategy

2017

Seismic re-interpretation of two oil fields to evaluate possible license area extensions

Drill 1 well and perform one work-over in RK-Oil accompanied by field infrastructure development

Field infrastructure development

Approval of field development plan for RK-Oil

*without newly acquired company

Petrosakh

RK Oil

BVN Oil

additional seismic interpretation for the two oil fields held by RK Oil and BVN Oil

following the cancelation of the first drilling contract at RK Oil, seek a partnership, ideally with a

major oil service company to manage the development of the large proven and probable reserves,

potentially coordinated with adjacent oil fields that have necessary infrastructure and transit

connections

Arcticneft

continue well work overs at Petrosakh, thus seeking to maintain production at approximately

1,200 bbls/day

upgrade refinery equipment to increase the yield and quality of products

obtain a marine terminal licence for the sale of bunker fuel to local ship operators

deploy newly acquired rig to drill three wells at our new South Dagi licence

workover two existing wells on South Dagi

continue work overs and the installation of jack pumps with the aim of keeping production

stable at approximately 1,000 bbls/day

assessment of a new programme of deviated wells and or fracking to increase production

significantly from existing horizons, and in the case of success;

apply for additional licences on the Island, in order to take advantage of our unique position as

the only operator with processing, tank farm availability and its own tanker terminals

18

Strategy overview 2018

19

Financials

20

1 July 2016 – 30 June 2017

Barrels of oil produced 716,365 782,936

Revenue per barrel of oil produced

(adjusted for inventory) $61.37 $38.68

Gross profit per barrel produced $9.91 $10.45

EBITDA per barrel produced $11.47 $12.01

Operating cash flow per barrel produced $10.18 $12.05

Net debt to EBITDA ratio 1.4 x 1.1 x

Operations

Income Statement

Cash Flow Statement

Balance Sheet

Comparison of Results - 12 Months Ending 30/6/17 vs. 30/6/16

Growing production

through development

plus acquisitions

Stable gross profit and

EBITDA fundamentals

despite reduced prices

and increased tax

burden

Focused on cash

efficiency enhanced by

USD revenues versus

RUR costs

Borrowing to smooth

irregular shipments

remains at prudent level

Key metrics

Net cash used in investing activities $4.3 m $9.0 m

1 July 2015 – 30 June 2016

21

Financial results

• Net revenue is determined by several main factors: the level of production / processing, export oil prices and domestic prices

for petroleum products, FX value of the rouble and tax regime for oil and gas companies

• Despite the natural decline in production, high netbacks (price minus the export duty, excise taxes and transportation costs)

especially on the local refined products market allowed UEN to obtain stable gross profit and EBITDA

• The major part of net finance income / (expenses) is caused by multidirectional exchange rate fluctuations. This is a virtual

figure as it relates to intercompany loans nominated in US dollars

$‘000 30.06.2017 31.12.2016 30.06.2016 31.12.2015 30.06.2015

Net revenues 22 433 29 052 7 525 27 213 7 214

Gross profit/(loss) 2 819 7 257 2 318 7 115 1 950

Operating profit/(loss) (211) 2 046 592 3 337 (57)

Management EBITDA 3 433 7 773 2 226 7 743 1 323

EBITDA margin 15% 27% 30% 28% 18%

Total net finance income/(expense) (212) 3 898 3 317 (7 590) 282

Profit/(loss) for the period (759) 8 001 3 411 (4 055) (48)

22

Cash and Net Debt

• Decrease in operating cash flow in US$ is a results of high volatility in oil prices and FOREX rates during the last years, increase

in tax burden and increase in costs of materials (mainly cost of a newer additive, which is required in order to be compliant with

the ‘EURO-5’ requirement).

• In 2016 the Company entered into an 18 month revolving credit facility for working capital financing with the Sakhalin branch of

OJSC Sberbank for 300 mln. RR (approx. $4.6 million) and in 2017 the Company entered into 24 month non-revolving CAPEX

credit facility with OJSC Sberbank for 50 mln. RR (approx. $0.9 million)

• In conjunction with the acquisition of ANK the Company entered into an additional short-term loan form

Kamchatcomagroprombank which amounted to approximately $1.7 million as at 30 June 2017

• The Company traditionally enters into a short-term working capital loan (approx. 2-3 months pre-export financing) with Petraco

Oil Company ltd (the trader of Arcticneft)

$'000 30.06.2017 31.12.2016 30.06.2016 31.12.2015 30.06.2015

Cash 401 1 202 2 591 1 695 1 499

Loans receivable 521 442 461 808

Loans payable (13 169) (6 792) (12 657) (3 935) (7 288)

Net Cash (Debt) (12 247) (5 148) (9 605) (2 240) (4 981)

Operating cash flows before changes in working capital 2 814 8 134 2 974 7 860 2 202

Urals Energy Value and Performance vs the AIM E&P

Market and Russian Peer Group

Q3 2017

Summary

Urals remains one of the highest ranked E&P companies (4th) on the AIM market by 2P Reserves

Russian 2P Reserves volumes dominate the AIM E&P sector and continue to trade at a significant discount

to the market average

Urals generates more operating cash flow per barrel produced than its AIM listed peers

Urals 2P Reserves trade at a discount to the market and its regional Russian and FSU peer groups

Urals have continued to outperform its Russian peer group during 2017

Analysts: C Barnes, J Bedford Date: 30th October 2017

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4

2P EV Prod

Source: LSE, E&P Company reports, presentations Analysts: C Barnes, J Bedford Date: 17 Oct 2017

Urals AIM E&P Market Ranking Q3 2017

0 – 25

25 – 50

Percentile

50 – 75

75 – 100

Negative

40 Market Rank

EV: Enterprise Value

Prod: Production

2P: 2P Reserves

1Average for companies with production 2Average for companies with reserves 3Average for companies with resources

Urals Russia Market

Number of companies 4 78

Production1 (boepd) 2,057 3,316 2,440

2P Reserves2 (mmboe) 104 105 30

2C Resources3 (mmboe) 0 1 83

2P Reserves EV $ / boe 0.2 0.3 4.8

• AIM E&P Market Ranking un-changed since Q2

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Urals Petroneft Volga Zoltav

Enterprise Value £ 18 13 40 38

Production (boepd) 2,057 1,100 2,698 7,408

2P Reserves

(mmboe) 104 66 39 210

EV change1 % 4 -28 27 -28

SHR change1 % -7 -29 23 -36

EV/SHR:1 : Enterprise Value & Share holder returns for first 9 months of 2017


Urals AIM Russian Peer Group Ranking Q3 2017

2P EV Prod

0 – 25

25 – 50

Percentile

50 – 75

75 – 100

Negative

EV: Enterprise Value

Prod: Production

2P: 2P Reserves

8% 7%

17%

0%

16% 5%

36%

10%

UK

Europe

SS Africa

MENA

America

Former Soviet Union

Russia

Far East

13%

5%

13%

12%

29%

5% 2%

22%

(27)

(16)

(12)

(7)

(4)

(4)

(4)

AIM Enterprise Value / Region Q3 2017

(4)

(27)

(4)

(7)

(16)

(4) Number of

companies

(4)

(12)

AIM 2P Reserves / Region Q3 2017


Russian Reserves are Trading at a Discount to the AIM E&P Market

(4)

(4)

Note: FSU excluding Russian focused companies

Regional Value of 2P Reserves & 2C Resource (EV $ / BOE) Q3 2017

0.7 6.6

3.2

0.3

7.1

2.0

9.9

10.6

1.8

0.2

2.9

1.1

5.0 0.2

2.0

2C Resources + associated 2P

2P Reserves

Enterprise Value ($) / BOE

Russian AIM Reserves are Trading at a Discount to Other Regions


Urals 2P Reserves Trading Value per Barrel vs the AIM E&P Market and

Russian Company Peer Group, Q3 2017


6.0

4.0

2.0

0.0

4.8

AIM

0.3

Russia

0.2

Urals

En

terp

ris

e V

alu

e (

$)

/ b

oe

0.5

Russia +

Exillon

Urals Reserves are Trading at a Discount to the AIM E&P Market

* Includes all AIM listed Russian E&P companies and Exillon trading on the main market

6.0

4.0

2.0

0.0

4.8

AIM

3.2

FSU1

0.5

Russia2

0.2

Urals


Urals Reserves are Trading at a Discount to the AIM E&P Market

and its Regional Peer Groups

Urals 2P Reserves Trading Value per Barrel vs the AIM E&P Market FSU

and Russian Company Peer Group, Q3 2017

En

terp

ris

e V

alu

e (

$)

/ b

oe

FSU1 : Excludes Russian focused companies, Includes: Frontera, Regal, Ascent, Caspian Sunrise, Zenith, JKX, Nostrum, Reach Energy

Russia2 = Zoltav, Volga, Petroneft, Urals, Exillon

2.0

1.0

0.0

0.6

Exillon*

0.3

Petroneft

Va

lue

($

) / b

oe

Zoltav

0.2

* Listed on London main market – not part of Urals AIM peer group

0.2

Urals Volga

1.4


Urals Reserves are Trading at a Discount to its Russian Peer Group

Urals 2P Reserves Trading Value per Barrel vs its Russian Peer Group, Q3 2017

-100

0

100

200

300

400

500

600

0 2 000 4 000 6 000 8 000 10 000 12 000

2P

re

se

rve

s (

mm

BO

E)

Production (BOE/d)

Urals Value vs Reserves & Production vs its Russian Peer Group

Q3 1017

Zoltav, £38

Volga, £40

Urals, £18

Petroneft, £13

Exillon, £223


Bubble Size =

Enterprise Value

Source: Company interim reports Analysts: C Barnes, J Bedford Date: 28 Oct 2017

17,3

7,2 6,4

5,5

-1,0

-5,0

0,0

5,0

10,0

15,0

20,0

EXILLON ENERGY URALS EN. VOLGA GAS ZOLTAV RES PETRONEFT

Urals Generates More Cash per Barrel than Most of its Peers

Op

era

tin

g C

as

h F

low

($

) /

bo

e

Operating Cash Flow $ / boe Before Working Capital Changes H1 2017

Historic Performance Bench Marking

Urals Has Out Performed its Peer Group in 2017

4

Number of

companies

AIM E&P companies 75-78

Russia

Urals Energy

Source: LSE, E&P Company reports, presentations Analysts: C Barnes, R Jones, H Luscombe, J Bedford Date: 17 Oct 2017

Note: Share holder returns corrected for share consolidations

Urals Performance vs the AIM E&P Market & Russian Peer Group Q4

2016 – Q3 1017

-7%

4%

-11%

-8% -9%

-30%

-0,3% -3%

-7%

21%

4%

23%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Shareholder Returns Enterprise Value Production 2P Reserves 2C Resources

36

Appendix

Urals Operating Cash Flow / Barrel Produced Russian Peer Group – H1 2017

Source: Company 2017 interim reports Analysts: C Barnes, J Bedford Date: 28 Oct 2017

Operating Cash flow per barrel

Company 6 Month Production (boe) Operating Cash Flow

before WC changes ($mm)

Operating Cash Flow after

WC changes1 ($mm)

Operating Cash Flow

before WC changes per

Produced Barrel ($)

Operating Cash Flow after

WC changes per Produced

Barrel ($)

EXILLON ENERGY 2,010,000 34.7 25.7 17.3 12.8

URALS EN. 388,889 2.8 -3.7 7.2 -9.6

VOLGA GAS 1,128,215 7.2 3.2 6.4 2.8

ZOLTAV RES 1,365,100 7.5 6.2 5.5 4.6

PETRONEFT 428,328 -0.4 -0.2 -1.0 -0.4

1 Operating Cash flow after WC Changes = Net Cash generated/used in operating activities

Source: Company interim reports Analysts: C Barnes, J Bedford Date: 28 Oct 2017

12,8

4,6 2,8

-0,4

-9,6 -15,0

-10,0

-5,0

0,0

5,0

10,0

15,0

EXILLON ENERGY ZOLTAV RES VOLGA GAS PETRONEFT URALS EN.

Operating Cash Flow $ / boe After Working Capital Changes H1 2017

17,3

7,2 6,4 5,5

-1,0 -5,0

0,0

5,0

10,0

15,0

20,0

EXILLON ENERGY URALS EN. VOLGA GAS ZOLTAV RES PETRONEFT

Operating Cash Flow $ / boe Before Working Capital Changes H1 2017

Urals Operating Cash Flow / Barrel Produced vs its Russian Peer Group – H1 2017

Urals Delivered Top Quartile Share Holder Returns Performance in 2016

• Urals Energy was ranked 51st by MC at the beginning of Q1 2016.

• Urals rank by share holder returns for the year Q1 2016 - Q1 2017

was 13

• Urals delivered increased shareholder value of 156%

Company Value by

MC1 Q1 2016

Shareholder Returns2

Q1 2016 – Q1 2017

Source: Company web sites & LSE

Last up dated: May 2017

Analyst: C Barnes, R Jones, J Bedford

H Luscombe

Urals

Energy

1MC= Market Capitalisation – colours highlight market value quartiles 2AIM E&P Companies ranked by % annual shareholder returns, corrected for

share consolidations

(-1) – (-20)%

(-20) – (-40)%

1 – 20%

20 – 40%

40 – 100%

>500

100 – 500%

>(-40)%

40

Board and Management

Andrew Shrager, Non-Executive Chairman, is a private investor with a wealth of experience in investment banking. Some of his main roles have included:

senior adviser at Renaissance Capital (emerging markets); senior advisor to Merrill Lynch (Energy & Power group throughout Russia and Central Europe);

director of corporate finance at Lazard Brothers. Between 2001 and 2012 Andrew was a director of Utilyx, one of the UK’s leading specialists in energy and

carbon, and between 2007 and 2010, he was a director of GeoDynamics Research. Since 2012, Andrew has held the position of CEO at GeoDynamics

Worldwide, an international oil service and investment company.

Leonid Dyachenko, CEO, one the founding shareholders of Urals, has been involved with UEN from 2001 and held positions of vice president, general

director of Urals Russia, Chairman of the Board and CEO. Prior to UEN he was involved in a number of business ventures including energy, transportation,

pharmaceuticals etc.

Sergei Uzornikov, CFO, has an extensive financial experience in oil and gas and power generation sectors. He started his career in PwC’s audit practice

and after that has held senior positions in Yukos Oil Company, Lundin Petroleum Group and Enel OGK-5. Mr. Uzornikov graduated from Moscow State

Institute of international relations and the Skolkovo executive MBA program.

Stephen Buscher, Non-Executive Director, as then CFO was instrumental in the success of the UEN listing on AIM in 2005. In 2007 he took up the Chief

Financial Officer role at Terralliance Technologies, an oil and gas exploration company privately owned by Goldman Sachs and Kleiner Perkins. Stephen

has recently been with the investment company Sistema as Executive Vice President investment strategy, and the Chief Executive Officer of Navitas Global

Resources, the foreign project and exploration division and wholly-owned subsidiary of RussNeft and serves on the Boards of Mina Petroleum a US DoD

fuel supplier, Sirius Energy a Mexican mid-stream operator and Shock Energy a US DOE technology contractor.

investor presentation · presentation in respect of its contents and the company is not acting in...

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