Urals Energy snapped up two private Russian companies, RK-Oil and BVN Oil for almost $5.3million.
These companies, owned by businessman Ilya Glebov, were formed in 2014 in order to participate in public auctions for oil exploration and production licenses in Russia’s Komi region, 1,200 north east of Moscow.
Urals said the deal would be paid in cash and the new working capital facility from Sberbank.
Chairman Andrew Shrager, said: “These acquisitions fit into our strategy of acquiring licenses for exploration selectively at times of low oil prices and undertaking initial exploration, but waiting until conditions improve before further developing such assets.
“They will add to the company’s potential pipeline through the ability to develop a further total area of over 947sq km in the Komi region, an area where the Urals Energy team have considerable expertise. These are the first steps in rebuilding the asset base of Urals Energy.”
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