Ruspetro: Yearly Figures – Revenues up 5% – Looking to Restart Development Drilling

Ruspetro plc, is an independent oil and gas development and production company, with assets in the Western Siberia region of the Russian Federation, announces today its results for the full year ended 31 December 2013 and an update on its operations to date.

Financial Highlights

·     Revenues of US$79.8m (+5% Y-o-Y) on the back of stabilised production

·     Full year EBITDA of US$13.0m vs. a negative EBITDA of US$6.2m in 2012(1)

·     Well Head Revenue per barrel significantly enhanced by the introduction of Mineral Extraction Tax (“MET”) relief for hard-to-recover reserves effective from September

·     Successfully extended the maturity of its Sberbank facility to 2018; as of year-end, total debt was US$ 403m, including shareholder loans

·     Cash of US$ 15.8m, improved by a one-year prepayment facility with Glencore Energy UK Ltd for US$30 million with the obligation to export 15,000 metric (approximately 1,200 bopd) tonnes of crude oil per quarter.

Operational Highlights

·     Average 2013 production up 3% from 2012 at 4,797 bopd

·     Successful waterflood implementation mitigated natural decline in base production

·     Proved reserves of 225 mmboe (-4% Y-o-Y)

·     Probable reserves of 1,662 mmboe (+4% Y-o-Y)

·     Proved developed reserves of 29 mmboe (+81% Y-o-Y)

·     Preparations progressing for a drilling campaign based on multi-stage fractured horizontal production wells

Corporate Highlights

·     Four new members have joined our Board in 2013, adding to a strengthened, international Board with a wealth of technical experience in the region and industry

·     Signed a technical partnership with Schlumberger in order to advance and execute a revised development plan

·     The Board continues to evaluate a range of funding alternatives and potential strategic transactions

John Conlin, Chief Executive Officer, commented:

“2013 has been a necessary year of reassessment for Ruspetro. During this period we have successfully restructured our debt, raised non-dilutive financing, strengthened our leadership and technical teams, and are therefore in a position to restart development drilling. Building on our technical partnership with Schlumberger, and the positive effect of the Federal MET relief on our production economics, we are confident that Ruspetro is well positioned for the future.”