Eurasia Drilling Company: 2016 Outlook- Aiming for $1.7bn in Revenues

As a result of requests from investors and shareholders, Eurasia Drilling Company Limited (the “Company”) announces the Company’s view on the group’s outlook for 2016. The Company expects 2016 revenue to be approximately $1.7-1.8 billion (assuming 64 Rubles to the US$), EBITDA to be approximately $390-420 million, and Capex to be approximately $250 million. The Company does not expect to pay any dividends for the year ended 31 December 2015.

This outlook is based on our expected customer mix and their level of activity, which continues to be significantly lower than the peak metres drilled in 2013. Consistent with our expectations, we are assuming effectively flat pricing but high inflation for our Ruble based land activity, impairments in our Iraq business, and a substantial reduction in our marine business in the Caspian Sea. We have assumed a continuing prolonged period of low oil price, and the extension of existing US and EU financial and energy sector sanctions through 2016. We also expect that the Company performance will be negatively affected by the impact of the proposed oil tax regime changes as the energy sector remains a high profile core industry.