Gazprom Neft Reckons Up Results of Geological Exploration Program for the First Half of 2010

Further to the exploration drilling results, expected growth of Gazprom Neft's C1 recoverable resources reached 12 mln. tons, up 10 per cent as compared to the same period of 2009, which exceeds half of the yearly plan.

For direct prospecting and exploration of oil and gas deposits in 2010, 18 exploration wells are scheduled for drilling and 5 wells at the Vyngapurovskoye field are planned to be deepened to Lower Jurassic deposits. Expected penetration rate at the yearend will make about 60 thousand meters.

As of the beginning of July, there are 8 wells drilled, of which 4 wells are completed and tested. The penetration index equals to 39.7 thousand meters.

At the Priobskoye field, three exploration wells were completed and tested, having yielded commercial pure oil inflow from the layers of the Neocomian deposits. Another exploration well was drilled and tested at the Zimneye field, which, at the test stage, gave a commercial pure oil inflow as well.

Four prospecting and appraisal wells, namely, Zapadno-Edelskaya located at the Severno-Noyabrskiy license area, Valyntoyskaya well at the same license area and two wells at the Yety-Purovskoye field have been completed and are currently under testing. Eight exploration wells are currently being drilled, while one well undergoes deepening.

Gazprom Neft Deputy CEO for Exploration and Production Boris Zilbermints commented on the progress of geological exploration program:

"By now, seismic exploration works of 2009-2010 field season have been completed. The yearly plan for 2D seismic exploration has been fulfilled in full. As for 3D seismic exploration works, 10 per cent of the on-coming 2010-2011 season's scope of works have been completed due to well-coordinated work of the seismic crews and existence of long-term 3D seismic exploration agreements".

Reference

Gazprom Neft 2009 Geological Exploration Activities

Intensification and efficiency upgrading of geological exploration for extension of the resource base makes one of the Company's key strategic targets. In 2009, prospecting and exploration drilling success ratio made 90.9 per cent with the efficiency of 561 tons of hydrocarbons per 1 linear meter of penetration. At the license areas of Gazprom Neft Group, 11 prospecting and appraisal wells were competed and tested, 10 of which yielded commercial hydrocarbon inflows.

Further to the completed prospecting and exploration drilling and supplementary exploration, the Nizhnevyngapurovskoye oil and gas condensate field was discovered; besides, 3 new oil deposits with aggregate recoverable oil reserves exceeding 4 mln. tons were discovered at the existing fields.

Generally, oil reserves growth throughout the Company reached 105.6 mln. tons in 2009. The key addition was gained due to supplementary exploration of producing fields (65.9 mln. tons) and reappraisal of reserves by revising geological field models and oil recovery ratios, mainly, at the Priobskoye and Sutorminskoye fields (39.7 mln. tons).