Urals Energy Public Company Limited has spudded its first exploratory well on the licence held by RK-Oil. The final target depth for this well is approximately 1,100 metres, with one shallow horizon as a target at approximately 450 metres. The company expects to reach the final target depth in approximately one month. At present RK-Oil's reserves of approximately 25 million barrels are classified as "D1" in the Russian Official Classification, equivalent to "P3" or "Possible". These reserves figures have not been reviewed in accordance with the AIM Guidance Note for Mining, Oil and Gas Companies. The company's objective is to establish proven and probable reserves as a first step in the design of a full Development Plan for the RK-Oil licence area. As noted in Urals Energy's announcement of March 30, 2017, the company is engaging Blackwatch Petroleum Services to prepare a Competent Person's Report on its portfolio of licences. This competent Person's Report will be prepared in accordance with an appropriate Standard and it is expected that it will be completed in June 2017. RK-Oil's exploration and production license is located 12 kilometres from a railroad terminal, which can provide access to the Transneft pipeline (located 80 kilometres from the licence area) for export purposes, or access to the nearest refinery for local sales (located 150 kilometres from the licence area).