The Company's founding investors had extensive experience in operating Russian and international oil business. Prior to the formation of Urals Energy they assembled a portfolio of Russian oil assets that were producing approximately 30,000 BOPD when sold to LUKOIL in 2003 at a multiple of their initial investment.

Following that sale, the founding investors chose to remain in the business together and formed Urals Energy. Urals Energy was incorporated in Cyprus in November 2003 as a limited liability company and capitalized with a cash investment of $80 million by such investors, much of which remains invested in the Company today ensuring that the remaining founding investors’ interests are aligned with the public shareholders.

On August 9, 2005, the Company’s shares were admitted to trading on the London Stock Exchange’s AIM market.  Morgan Stanley was the sole manager for the initial public offering, raising $131 million.