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Commercial Production at Slavineft's Kuyumbinskoye Field in Krasnoyarsk Region Will Start in 2017

Commercial Production at Slavineft's Kuyumbinskoye Field in Krasnoyarsk Region Will Start in 2017

10 October 2013

OAO NGK Slavneft The Kuyumbinskoye oil and gas field situated inthe Krasnoyarsk Region, whose license isowned byOOO Slavneft-Krasnoyarskneftegaz will beput tocommercial production in2017.

Atthe first stage ofoperation in2017, the total of295 ths tons ofoil will beproduced, according tothe plan. Itisexpected that the annual oil production volumes will gradually increase toreach asmuch as10.8 mln tons in2029as the new deposits ofthe Kuyumbinskiy and other license areas ofSlavneft-Krasnoyarskneftegaz are put toproduction.

From 2010, active operational infrastructure setup and preparation ofhydrocarbon reserves for production have been performed atthe Kuyumbinskoye field. Over the recent period, the tank farm with the capacity 30ths tons has been built and the pilot program has been successfully performed atthe oilfield: 7production wells were drilled (4wells with horizontal tailing-in, 2low-angle wells and 1directional well). The wells are operated with free flow and the oil rate of50-80 tpd with minimum underbalance.2more horizontal wells will beput toproduction before the end ofyear, and from 2014 to2015, 16wells will beconstructed including 2wells bilateral horizontal wells.

SN-KNG performs exploration activities at5license areas ofthe Evenki municipal area ofthe Krasnoyarsk Region, including: the Abrakupchinsky, Kordinsky, Podporozhny, Kuyumbinsky and Tersko-Kamovsky license areas. The territory ofSN-KNG’s operations covers the total of18thousand square kilometers. The Company’s key discovered fields are located atthe Kuyumbinskiy and Tersko-Kamovskiy license areas located atYurubcheno-Tokhomskaya oil and gas accumulation zone.

Atthe moment, OOO Slavneft-Krasnoyarskneftegaz fully performs its license obligations onthe search, exploration and production ofhydrocarbons atits subsoil areas. The Company’s Exploration Program isaimed toachieve all the target indicators ofthe license agreements asrelated to2Dand 2Dseismic surveys, exploration and prospecting drilling atthe developed territories and geologic and geophysical data processing. Moreover, the Kuyumbinskoye field development investment project preapproved bySlavneft’s Shareholders provides for additional exploration activities atthis subsoil area in2014-2016 above the existing license obligations.

From the moment ofits foundation in1998 until 2012, OOO Slavneft-Krasnoyarskneftegaz has drilled 45exploration and prospecting wells atthe license areas ofthe Krasnoyarsk Region. The drilling meterage exceeded 118.7 ths meters. 2Dseismic surveys performed over the same period amounted to8,253km and 3Dseismic— 1,532sq.km. Vertical seismic profiling was performed at26wells. Due tocomprehensive exploration activities, over 15years, the Company managed toachieve C1recoverable reserves increment inamount ofover 150 mln tand C2reserves inamount of223.4 mlnt.

OOO Slavneft-Krasnoyarskneftegaz isone ofthe industry leaders interms ofhydrocarbon reserves increment inEastern Siberia. AsofJanuary1, 2013, С1+С2 remaining recoverable reserves onthe books ofOOO Slavneft-Krasnoyarskneftegaz amounted to504.7 mln tons (including С1— 152.9 mln tons, С2— 351.9 mln tons).

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