Late 2003, OJSC “Surgutneftegas” received a license to perform prospecting works at three sites in Sakha-Yakutia, i.e. Kedrovy, Peleduysky and Khoronokhsky, and a license to develop the central block of the Talakan oil field. Having executed relevant documents, the Company set to work.

Last year saw 378 km of seismic profiles completed at Peleduysky site, prospecting projects prepared for all three prospecting sites, two exploratory wells drilled with one more in progress. Prospecting drilling is to total 4,100 m by the end of the year.

According to specialists, prospecting results show oil & gas occurrence in the region.

By December 1, 2004, there have been 194.4 thousand tons of oil produced and 4 horizontal wells drilled at the Talakan oil field with development drilling amounted to 6.6 thousand meters. Operating well stock is to reach 33 wells by the end of the year.

The Company performed geophysical well control and a whole range of hydrodynamic well surveying works. We have constructed a motor road which stretched for 100 km from Vitim to the Talakan oil field.

There have been 700 railroad cars with goods including POL (petroleum, oil and lubricants), drilling rigs, house trailers, dining trailers, diesel power stations, construction equipment and vehicles delivered to Vitim settlement where equipment and transport are to be based.

All necessary living conditions including hot meals have been provided for shift teams.

Total capital investment in Sakha-Yakutia amounted to RUR 1.700 bn.

In 2004-2005 we plan to perform 2,800 km and 200 km of 2D and of 3D profiles respectively and drill 4 prospecting wells.

In 2005, we plan to produce 250,000 tons of oil, drill 4 horizontal wells and raise operating well stock to 37 wells.

Press Service of OJSC “Surgutneftegas”