Urals Energy. A Punt?

Several requests for information re’ Urals.

Well where do i start? The whole sad sorry Urals tale reads like a cold war espionage novel.

There’s has been slaughter,butchery and corruption associated with Urals. Run by a rotten corrupt Board who thankfully have been vanquished.

The new man at the helm has had to perform what we here describe as wholesale slaughter just to try and keep them afloat. Debts re-financed, debt for equity swaps, asset sales, cost reductions, board sackings, delisting etc etc,  i could go on and on but most of you are well versed and know the tale.

The sad fact of the matter is that Urals where sat on world class assets and to all intents and purposes began over extending their assets/liabilities to such an extent that payments  defaulted. At one point this company were trading at well over 400p .

As at present current liabilities out-strip assets by approx’ $32 million. Now at first glance most see this as a real challenge to their survival. Their producing assets are currently being reworked  to increase production there in lies the hope. The very fact that the new man has certainly grasped the demons and fought tooth and nail to save Urals bodes well for the future.

Not only has he cast out a rotten board he has also been running a two track survival plan involving a moderate programme of side track drilling/increased production and asset rebuilding with significant debt reduction.  Now after speaking to our Eastern European section, their opinion is that Urals lack of credibility at the moment is based on loss of trust from the previous board. Confidence needs to be restored here with the market=ergo Good news.

Please bear in mind that current global economic factors are  also playing their part in suppressing this share price.

Will they survive? Well after going through much data  the consenus here is that there’s a chance that they could go under but it is more than likely that they are now on the road to recovery and should eventually begin to pick up once good news begins to filter out.

Will 400p ever be reached? Not a chance!  Lower your expectations; 10p is the first signal of an SP recovery that will take several years.

A decent punt.


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  1. mike lee says:

    Dan thanks for the info.

    Although I have to disagree where you say liabilities exceed assets for this company.

    This is taken from the last RNS issued by the company from the accounts:

    “As at 31 December 2009 the Company had net cash of $4.5 million (calculated as
    Short-term debt plus payables to Finfund less cash in bank, less loan receivable
    from Taas and less Loans issued to related parties)”

    They have a big loan owed to Urals from TAAS for well over $30M which is hoped to be paid back soon.

    • Brokerman says:

      Mike check out the Independent company audit.
      As of the year end Dec 2009

      Qualified Opinion

      “In our opinion, except for the effect on the financial statements of the matter described in the Basis for Qualified Opinion paragraph, the consolidated financial statements give a true and fair view of the financial position of Urals Energy Public Limited and its subsidiaries as of 31 December 2009, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the EU.”

      Emphasis of matter – Going Concern

      “Without further qualifying our audit opinion, we draw attention to Note 3 to the consolidated financial statements which indicates that the Group incurred a net loss of US$ 304.0 million during the year ended 31 December 2009 and, as of that date, the Group’s current liabilities exceed its current assets by US$ 32.5 million. This condition, along with other matters as set forth in Note 3, indicate the existence of a material uncertainty which may cast significant doubt about the Group’s ability to continue as a going concern.”

      Unless Urals updated on the above Audit then this should explain to PI’s why the SP is weighted down at the present time
      I can’t find any other piece of data that negates the above.


      • kennyb says:

        Hi Daniel,
        I’m not a serious investor but i have invested a small amount (£5k) in DXR,this is the first and only share i have ever bought after some advice from a family friend,
        It is a long term investment and i have done it with the family silver so to speak,Me and my partner really are nervous about all this and it may seem like peanuts to most of u big boys but your advice really would be appreciated.
        We do have time and money in the bank to wait 5-10 years if we have to for a return on our money,but our main concern is that this is a penny share and all the risks involved with that.
        P.S We bought when the share was 3.25p and the trustworthyness of the freind is unquestionable.
        Kind Regards Ken

        • Brokerman says:

          I shall activate some actions for opinion and news here for you. It will take a few days.
          5K is a hefty amount of money. Always research your investment .


          • kennyb says:

            Much appreciated Dan,there is a bb on the site ADVFN this is what really gives the wife the main cause for concern and wish we’d never stumbled across it,I know u can’t take everything on a bb too seriously but there do seem to be some well educated investors there,if you do take a look at the recent few posts we are of the opinion that a certain PWhite who just takes a negative stance,scares the life out of the missus,and seems to have a vendetta with a certain kennyruss who seems to be in the stock along with CPSzued for a quick buck albeit that they are massive share holders.
            It seems kennyruss maybe made a killing somewhere else leaving PWhite and maybe others stranded,kennyruss has stated he is keen to move on and perhaps leave a legacy behind of 500k shares which we find to be open and honest,dosen’t bother us because we want to try and forget about day to day proceedings and are hopefully in it for the long term,some results which we’ve been anxiously waiting for were released last week and we’ve promised ourselves we’re no longer going to read that board after they were released,we will and have stuck to that promise.
            Kind Regards,Ken Burke.
            P.S I take my hat off to you Sir for this board and the time,picking of your brain and effort you kindly put in for free,jolly good show.

          • Brokerman says:

            Use Interactive investor it’s a well run site and most of the posters (barring a few) will give help when asked.


          • dj says:

            I would caution that some of the posters on interactive investor are very gung ho, and will advise you to buy for no reason. Of course it’s your loss if you listen to them, but look for reasoned arguments that support a share rather than mindless posts by people saying the price will double by lunchtime.

          • Brokerman says:

            Of course. Research and advice should always be undertaken and weighed properly. After all it is your money your investing.

  2. jockey says:

    I must of missed that when i read the reports. Cant recall it either but now that youve highlighted it your quite right dan, saying that its a frigging long report must of taken you a fair time to read no wonder we all missed it..
    suppose thats the diffo between a Privateer and a financial worker.

    Great Blog.

  3. dj says:

    Any view on Audax Resources (ADX listed onthe NY exchange, which is drilling in Tunisia)? Edison has published a view that the price could go up from 0.20c to more than $1

  4. Pan says:


    Any new on Optare? The board said in the annual report that they could update us with further details of the approach by the end of June.

    They issued nothing more then a statement saying all is positive, the same wording in the anuual report with no further details. Sounds like a hiccup in the background and preventing them to release any further detail.

    Your view & any news?



    • Brokerman says:

      It seems they are stuck in a mire regarding company value.
      The T.O talks are certainly dragging on, one of the problems is that every time Optare win a new contract then the T.O talks are thrown into more negotiation re’ company value.


      Hold for news.