TATNEFT announces the Results of Operations in May and from the Beginning of 2010

Oil Production

OAO TATNEFT produced 2,193,766 tons of crude oil with the above-the-plan production of 36,596 tons (101.7%). Production volume for the period of 5 months amounted to 10,693,151 tons of crude oil accounting for 27,856 tons surplus compared to the amount of 2009 (100.3%). Above-the-plan production amounted to185,569 tons (101.8%).
10,443,894 tons of oil was delivered with the above-the-plan delivery amounting to 174,634 tons.

New Drilling

The penetration during a five months period of 2010 amounted to 281.5 thousand meters versus 252.1 thousand meters during the similar period of 2009:
239.2 thousand meters were drilled for OAO TATNEFT (227.7 thousand meters in 2009), including 233.4 thousand meters of production drilling and 5.8 thousand meters of exploratory drilling;
7.4 thousand meters were drilled for OAO TATNEFT subsidiaries and affiliated companies (13.6 thousand meters in 2009), including 4.1 thousand meters of production drilling and 3.3 thousand meters of exploratory drilling;
34.9 thousand meters (10.8 thousand meters in 2009) were penetrated for joint ventures and independent oil companies, including 32 thousand meters of production drilling and 2.9 thousand meters of exploratory drilling.
181 wells (142 wells in 2009) were constructed and handed over to customers and out of this amount 129 wells (122 wells in 2009) were delivered to OAO TATNEFT with 126 production wells and three exploratory wells; four production wells were drilled for OAO TATNEFT subsidiaries and affiliated companies (3 wells in 2009); 48 wells (17 wells in 2009) were penetrated for joint ventures and independent oil companies, including 45 production wells and three exploratory wells.

Drilling in the Old Well Stock

Penetration of sidetracking and horizontal wellbores for five months of 2010 amounted to 13.5 thousand meters (12.3 thousand meters in 2009) including: 9.4 thousand meters penetrated for OAO TATNEFT (6.9 thousand meters in 2009); 4.1 thousand meters were drilled for joint ventures and independent oil companies (5.4 thousand meters in 2009).
32 wells were delivered to the customers (34 wells in 2009): 21 wells were delivered to OAO TATNEFT (24 wells in 2009); and 11 wells were delivered to joint ventures and independent oil companies (10 wells in 2009).
In 2010, 40 drilling crews performed drilling of new wells. 8 drilling crews were engaged in sidetrack penetration and drilling horizontal wellbores.
Penetration per one drilling crew for 2010 amounted to 7,133 meters, while in 2009 the penetration per crew amounted to 5,911 meters.
8.8 thousand meters were penetrated outside the Republic of Tatarstan. 28.6 thousand meters were penetrated in horizontal wells and multi-branched downhole splitters.

Well Workover

630 well remedial operations were performed in May 2010 and 3,505 remedial operations were performed during the period of five months, i.e. 179 wells less than in 2009 (3,684 wells during 5 months of 2009).
22 well repair operations were performed in OOO Tatneft-Samara, including 11 well remedial operations and 11 workover operations.
The workover operations were performed at 1,088 wells during a five months period of 2010 (835 wells during 5 months of 2009) with 228 jobs performed in May, including: production string sealing in 170 wells; shutting-off individual layers and recompletion in other intervals in 133 wells; transfer of the wells into different categories and wells completion for injection in 66 wells; failure liquidation and cleaning of the electrical cable and bottom hole areas in 136 wells.
347 wells were worked over with application of coil tubing (78 wells in May), including 78 wells worked over through the annulus.
Formation hydrofracking operations were performed in 102 wells (26 wells in May). The cumulative incremental recovery amounted to 3,302 thousand tons.
10 slim holes were drilled and completed for OAO TATNEFT from the beginning of the year. 2 crews perform drilling at present with one of them drilling at NGDU Aznakaevskneft while another one performs drilling operations at NGDU Almetyevneft.
Works on oil recovery enhancement were performed at 895 wells (196 wells in May), including chemical treatment methods applied at 512 wells (119 wells in May).
The incremental oil production resulting from application of the enhanced oil recovery methods amounted to 2 million 174 thousand tons with the chemical methods accounting for the production of 1 million 48 thousand tons.
Operations for preparation and delivery of acid compositions were carried out at 1,069 wells during five months of 2010 and the production of chemical products amounted to 15 thousand 233 tons of chemical products for the amount of 321 million rubles.