Urals Energy, a leading independent oil and gas producer focused on East Siberia, Russia reports the successful testing of appraisal well #105 at the Dulisma Field.

This first horizontal well completion at the Dulisma Field has been tested extensively over two weeks and has been certified by Geodata, a Russian oil services company, as flowing at 1,280 BOPD.

The well is now tied-in to the Field infrastructure and is producing. Including production from well #105, total average production by the Company is now approximately 6,500 BOPD.

The well is at a depth of 2,633 meters and, with deviation and a horizontal section in excess of 300m, has a total length of 3,182 meters. Future wells may be drilled with greater length as drilling techniques are optimized to maximize recovery. In June 2008, drilling commenced on a separate drilling pad with the Company’s second drilling rig (225 ton capacity) and drilling in the Field currently continues with two rigs operating simultaneously. In addition, construction of the oil field infrastructure, including the oil processing and transfer facilities and the 73 km oil export pipeline to ESPO is progressing.

Leonid Dyachenko, Chief Executive, commented, “The successful completion of this first horizontal well and its encouraging flow rate is indicative of Dulisma’s potential and underlines the opportunity that we envisage in East Siberia.

“With our extensive drilling and construction programme underway, we are making good progress towards the development of our key assets and the commercialisation of our substantial 2P reserve base of 1.2 billion boe.”