drilling

JSC «Rusgeology»

Khersonskaya st. 43, bld. 3, Moscow, RF 117246E-mail: info@rusgeology.ruT: +7 (495) 988-58-07, +7 (495) 988-58-09F: +7 (499 ) 271-97-60

www.rosgeo.com

Drilling works volume indicators for 2014:NAME OF THE WORKS UNITS 2014

DRILLING

number of projects units 6

Drilling progress lin m > 4,000

CASED HOLE TESTING

number of projects units 15

Cased hole testing units 10

OTHER number of projects units 54

At present, the following works are under way:

DRILLING PROJECTS

ON THE GYDAN PENINSULA

Gydanskaya 130 (TARGET DEPTH - 6,500 M)

IN THE SAKHA (YAKUTIA) REPUBLIC

Ust-Mayskaya 366 (3,700 M)

Nizhne-Chonskaya 252 (2,200 M)

TESTS IN THE IRKUTSK REGION

Chaykinskaya 367(2,100 M)

Rosgeologia companies specialising in drilling operations:

JSC SIC Nedra Yaroslavl

JSC Ukhtaneftegazgeologia Ukhta

Companies of Rosgeologia performing engineering and drilling works:

JSC Irkutskgeofi zika Irkutsk

JSC Volgageologia Nizhny Novgorod

JSC Gorno-Altaisk Expedition Gorno-Altaisk

JSC Krasnoyarskgeolsyomka Krasnoyarsk

JSC Zapsibgeolsyomka Elan

JSC Kamchatgeologia Petropavlovsk-Kamchatsky

JSC Yuzhgeologia Rostov-on-Don

JSC Chitageologorazvedka Chita

JSC Geocentr-Moscow Moscow

JSC Dalgeofi zika Khabarovsk

JSC Kompania Votemiro Orenburg

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Rosgeologia has the following fl eet of drilling rigs:

NAME, MODEL MANUFACTURER Q-TY

DRILLING RIGS 11

F-400 DXU Romania 1

F-320 ЕС Romania 1

BU-5000/320 DGU OJSC Uralmash-zavod 1

BU-3200/200 DGU OJSC Uralmash-zavod 1

BU-2500/160 DGU VZBT, LTD 1

Uralmash-3D-86 OJSC Uralmash-zavod 2

Uralmash-3D-76 OJSC Uralmash-zavod 3

Uralmash-4E-76 OJSC Uralmash-zavod 1

In addition, Rosgeologia possesses: Modern equipment and equipment for geophysical studies of wells.

Laboratory complex-es and methods al-lowing performance of mineralogical and petrographic, bioparametric, petrophysical, geochemical and hydrogeochemical research.

Information re-sources, including a geological fund, a patent information fund and a technical library.

A core library, a museum of super-deep drilling, and a modern technol-ogy for processing and systematising core materials for parametric and super-deep wells.

A modern logistics base.

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well design. Development of design and estimate documentation;

drilling of parametric and super-deep wells;

prospecting and exploration drilling for oil and gas;

drilling for solid mineral resources;

core sample collection;

open hole formation and production string tests;

geological and engineering surveying of wells;

geophysical surveying of wells;

examination of core and fl uids;

integrated processing of the research materials;

data compilation and analysis;

drilling and servicing of artesian wells for drinking and technical water supply;

drilling as part of engineering and geological surveys for construction purposes, including in permafrost conditions;

servicing and restoration, monitoring and abandonment of hazardous wells;

drilling project management and supervision.

Prospecting and exploration drilling for oil and gasRosgeologia has experience in oil exploration throughout the Russian Federation.

Oil exploration led to the discovery of dozens of oil and gas fi elds. 12 oil fi elds were discovered in the Kaliningrad Region, 22 in the Ulyanovsk Region and neighboring regions. Oil and gas fi elds were discovered in the Komi Republic, the Nenets and Yamal-Nenets Autonomous Districts..

ROSGEOLOGIA PERFORMS THE FULL CYCLE OF WORKS ON PARAMETRIC, PROSPECTING AND EXPLORATION DRILLING FOR OIL AND GAS IN THE RUSSIAN FEDERATION AND ABROAD, AS WELL AS SUPERVISING SUCH WORKS.

Well drilling for different purposesRosgeologia companies perform engineering, construction and exploration, and abandonment of any types of well:

Rosgeologia R&D and manufacturing subdivisions, such as SIC Nedra, Tula NIGP and others, produce their own diamond and carbide tools for drilling and drilling equipment, develop original technologies of well drilling and exploration, drilling fl uids and information systems for drilling operations.

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regional study of deep structures of potential oil-and-gas accumulation zones, development of standard geological and geophysical sections;

refi nement of the data on section stratigraphy, stratifi cation of seismic horizons;

detection of potential oil-and-gas accumulation zones and assessment of the exploration prospects;

improving the effi ciency of geological interpretation of deep geophysical survey data on the state network base lines;

obtaining of parametric information about the properties of the geological environment, the nature of geophysical boundaries and fi elds in order to increase make geological and geophysical surveys more effective;

refi nement of the data on the lithology of regional oil and gas strata, examination of rock reservoir properties;

quantifi cation of forecast oil and gas resources (lithologic - stratigraphic units, evaluated within the bounds of large regional structures).

to obtain fundamental knowledge about the deep structure and evolution of the continental crust and the Earth as a whole;

to study the processes of ore and oil-and-gas generation, to develop new forecasting and exploration criteria and evaluate the industrial potential of the deep horizons of the Earth’s crust;

to develop a technology for deep and super-deep drilling, to create instruments for developing deep horizons;

to search for and develop new and innovative ways to use the Earth’s interior.

Super-deep and parametric drillingParametric drilling tasks

Super-deep parametric drilling. Unique projects

Super-deep wells are drilled to fulfi l the following tasks, among others:

Rosgeologia fl agship drilling company JSC SIC Nedra has, since the 1980s, been the leader in drilling of super-deep wells within the framework of the relevant All-Union Scientifi c and Technical Programme.JSC SIC Nedra conducted drilling and surveying of a number of deep and super-deep wells on the East Siberian and West Siberian platforms, the Baltic and Ukrainian crystalline shields, the Urals and Caucasus fold regions, the Caspian Depression and the Timan-Pechora sedimentary basin.

Kola Superdeep Borehole SG-3 WORLD RECORD DRILLING DEPTH:

12,262 mWEST SIBERIAN OIL AND GAS PROVINCE:

Tyumen Superdeep Borehole SG-6 7,502 m En Yakhin Superdeep Borehole SG-7 8,250 m

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Well testingRosgeologia companies have accumulated years of experience of well testing under various mining-and-geological conditions, including testing of super-deep parametric wells.

Well testing technologies were developed for under abnormally high and abnormally low reservoir pressures and are being successfully applied.

The testing process is registered by modern digital depth gauges with pressure limits of up to 100 MPa and temperature limits of up to180 C°.

The tests results are processed using special software and proven techniques.

Geophysical surveying of wells

Rosgeologia companies have vast experience of well logging under diffi cult mining-and-geological conditions.Rosgeologia performs the full set of geophysical operations in wells, including coring, data processing and interpretation, together with other methods (advanced mud logging, drill stem testing, core examination).

Integrated exploration of rocks and fl uids of deep and super deep parametric wells:

laboratory integrated lithological and stratigraphic, geochemical, petrophysical and hydrogeochemical research and creation of databases;

pyrolysis studies by the Rock-Eval 6 method;

compilation of generalised sections;

assessment of the petroleum potential of deep horizons of drilling areas.

Parametric drilling on the Arctic islands

International Baikal Drilling Project

As a result of the drilling by JSC SIC Nedra on the Arctic islands, the commercial oil and gas potential of the Barents and Kara Seas shelf was proven for the fi rst time; two hydrocarbon deposits were discovered there and direct signs of subsurface oil and gas potential of the Svalbard Archipelago were detected as well. The oil fl ow rate, obtained from Peschanoozerskaya No. 1 well (Kolguev Island) was 200 t/day.

To implement the project, special equipment and unique technology of drilling sediments were developed.13 wells of different depths were drilled at 5 sites on Lake Baikal with a total drilling volume of about 2,500 metres and more than 90% of core recovery.The project was implemented in 1993–1999 within the scope of the international programme for studying global climate change and the environment.

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Recording and storage of rock material from wellsSIC Nedra has developed its own system for storing and processing core. The entire cycle of works with unique core from deep and super-deep parametric wells is performed in a systematic way that ensures the safety of and remote regulated access to primary geological materials in natural and physical carriers and related information resources.

The system provides online support for information interaction between all departments involved in well construction. A unifi ed information space is being formed: a support centre that provides maintenance for the database of the results of drilling, testing, well logging and laboratory analytical investigations of rock material and fl uids.The network infrastructure is formed by using satellite links. The Company develops and implements original information and communications technologies based on modern software and hardware solutions.

Information support for drilling worksFor providing information support for drilling works, Rosgeologia uses the specialised AIS Support system, which can signifi cantly increase the effi ciency of geological and technical, as well as methodological and technological support for works.

Rosgeologia monitors the well stock for oil and gas, including inspection and abandonment of environmentally hazardous wells from the unallocated subsoil fund of the Russian Federation. Since 2007, Rosgeologia companies have abandoned more than 130 environmentally hazardous wells and inspected about 1,500.

Identifi cation, investigation and abandonment of environmentally hazardous oil and gas wells in the Russian Federation

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Rosgeologia companies have more than half a century’s experience in well drilling in different rocks under the harshest climatic and natural conditions in Russia and abroad.Rosgeologia performs the full cycle of drilling works for all types of mineral resources, as well as supervising such works. The Holding’s companies perform development works on production of drilling tools and equipment and develop original technologies for drilling under extreme conditions.The Company has unique competences in drilling and integrated exploration of deep

and super-deep wells and assesses the prospects for deep oil and gas potential of Russia’s major oil and gas regions.

Rosgeologia performs the full cycle of works on engineering, construction and exploration of any type of well

ROSGEOLOGIA’S SHARE OF THE PARAMETRIC DRILLING MARKET IN RUSSIA IS MORE THAN

75%1