Tatneft: Operational Update – Production Marginally Up, Large Reduction on yoy Drilling

Crude Oil: Production The amount of 2,228,079 tons of crude oil or 100.4 percent versus August 2013 was produced at JSC TATNEFT, while the production since the beginning of the year amounted to 17,441,513 tons, which was 71,968 tons more than in 2013 (100.4%).

New Drilling

The new drilling penetration for 8 months of 2014 amounted to 327.8 thousand meters (382 thousand meters in 2013) with the drilling performed for JSC TATNEFT in the amount of 267.2 thousand meters (301.2 thousand meters in 2013), including drilling to bituminous deposits in the amount of 12.5 thousand meters, production drilling accounting for 243.2 thousand meters and exploratory drilling accounting for 11.5 thousand meters.

9.9 thousand meters (23.8 thousand meters in 2013) were penetrated for OOO “Tatneft-Samara”, including production drilling in the amount of 4.0 thousand meters and exploratory drilling amounting to 5.9 thousand meters.

204 wells (251 wells in 2013) were constructed and delivered to customers with 162 wells delivered to JSC TATNEFT (187 wells in 2013), including 14 bituminous wells, 142 wells of production drilling and 6 wells of exploratory drilling.

2 production wells were constructed and delivered to OOO “Tatneft-Samara”.

Active Well

Stock Drilling The penetration of sidetracks and horizontal wellbores drilling for JSC TATNEFT amounted to 38.3 thousand meters (38.2 thousand meters in 2013) during eight months of 2014, including 13.1 thousand meters (18.8 thousand meters in 2013) for JSC TATNEFT.

68 wells were delivered to customers (75 wells in 2013) with 40 wells (51 wells in 2013) delivered to JSC TATNEFT.

The average number of drilling crews performing conventional well drilling operations since the beginning of 2014 amounted to 35, while 13 drilling crews were engaged in drilling lateral and lateral horizontal wellbores. One drilling crew performs drilling to the bituminous deposits of Ashalchinskoye oil field for NGDU “Nurlatneft”.

The penetration per crew engaged in new drilling amounted to 9,035 meters during eight months of 2014. 47.1 thousand meters were penetrated outside the Republic of Tatarstan, including 25.2 thousand meters for penetration of sidetracks and horizontal holes.

Repair of Wells

During eight months of 2014 the crews of remedial servicing, workover and oil recovery enhancement performed remedial servicing in 5,357 wells (755 wells in August) and workover in 1,715 wells (289 wells in August), including production string sealing performed in 211 wells, shutting-off individual layers and recompletion in other intervals in 85 wells, transfer of wells into different categories and wells completion for injection in 133 wells, liquidation of downhole complications and cleaning of production casing and bottomhole in 143 wells and installation of isolating packers and dual completion systems in 81 wells.

85 wells were repaired outside the Republic of Tatarstan with 77 wells for OOO “Tatneft-Samara” and 8 wells for OOO “Tatneft-Severny”.

Formation hydrofracking operations were performed in 449 wells (86 wells in August). Five small diameter horizontal wells were drilled and completed for NGDU “Almetyevneft”. Works on oil recovery enhancement were performed in 1,769 wells (266 wells in August), including chemical methods applied in 881 wells (129 wells in August). Bottomhole area treatment operations with application of JSC TATNEFT’s technologies were performed in 2,280 wells.