TATNEFT: Figures Demonstrating Results of Operations in January and from the Beginning of the Year

The amount of 21,035 tons of crude oil (103.5%) was produced from the fields of TATNEFT Group of Companies in the territory of the Russian Federation.

Traditional Drilling

The total penetration of new drilling in January 2011 amounted to 42.2 thousand meters (57.7 thousand meters in 2010):
- 35 thousand meters for OAO TATNEFT (47.6 tm in 2010), including 35 thousand meters of production drilling;
- 2.5 thousand meters were drilled for OAO TATNEFT's subsidiaries and affiliated companies (3.7 thousand meters in 2010), including 2.3 thousand meters of production drilling and 0.2 thousand meters of exploratory drilling;
- 4.7 thousand meters (6.4 thousand meters in 2010) were drilled for joint ventures and independent oil companies, including 4.1 thousand meters of production drilling and 0.6 thousand meters of exploratory drilling.

Totally 28 wells (32 wells in 2010) were constructed and handed over to customers:
- 12 wells (11wells in 2010) were drilled for OAO TATNEFT with 12 production wells;
- 2 wells (0 wells in 2010) were drilled for OAO TATNEFT's subsidiaries and affiliated companies with 1 production well and 1 exploratory well;
- 14 wells (21 wells in 2010) were drilled for joint ventures and independent oil companies, including 13 production wells and 1exploratory well.

Drilling in the old well stock

Penetration of sidetracking and horizontal wellbores amounted to 3.7 thousand meters in January of 2011 (1.9 thousand meters in 2010):
- 2.9 thousand meters were penetrated for OAO TATNEFT (1.5 thousand meters in 2010);
- 0.8 thousand meters were drilled for joint ventures and independent oil companies (0.4 thousand meters in 2010).
1 well was delivered to the customers (4 wells in 2010):
- 0 well was delivered to OAO TATNEFT (2 wells in 2010)
- 1 well was delivered to joint ventures and independent oil companies (2 wells in 2010)
36 drilling crews performed traditional well drilling operations in January 2011. 9 drilling crews were engaged in sidetrack penetration and drilling horizontal wellbores. Penetration per one crew in new drilling amounted to 1,195 meters in 2011, while in 2010 the penetration per crew amounted to 1,283 meters.
2.3 thousand meters were penetrated outside the Republic of Tatarstan.
4.9 thousand meters were penetrated in horizontal wells and multi-branched downhole splitters.

Well Repairs

634 well remedial operations were performed in January 2011 (619 wells in January 2010). The number of remedial operations performed at the production wells reduced by 1.7% (from 527 to 518), while the number of remedial operations performed at the injection wells increased by 60% (from 58 to 93).
2 well remedial operations were performed outside the Republic of Tatarstan in OOO Tatneft-Samara and in OOO Tatneft-Severny respectively (4 well remedial operations were performed in OOO Tatneft-Samara in January 2010).
The workover operations were performed at 156 wells in January 2011 (182 wells in January 2010), including: production string sealing in 32 wells; shutting-off individual layers and recompletion in other intervals in 15 wells; transfer of wells into different categories and the wells completion for injection in 5 wells; failure liquidation and cleaning of the electrical cable and bottom hole areas in 15 wells and physical liquidation and re-liquidation in 3 wells.
46 wells were worked over with application of coil tubing (49 wells in January 2010), including 9 wells worked over through the annulus (8 wells in January 2010).
Formation hydrofracking operations were performed in 16 wells (10 wells in January 2010). The cumulative incremental oil recovery amounted to 3 million 729 thousand tons.
1 slim hole was drilled and completed for OAO TATNEFT in January 2011. At present drilling of one slim hole is on the way for each of NGDUs: Almetyevneft, Prikamneft and Leninogorskneft.
Works on oil recovery enhancement were performed at 135 wells (140 wells in January 2010), including chemical treatment methods applied at 91 wells. The incremental oil production resulting from application of the enhanced oil recovery methods amounted to 400 thousand tons, with the chemical methods accounting for the production of 190 thousand tons.
Bottom hole zone treatment operations with application of OAO TATNEFT's technologies were performed at 184 wells in January 2011 (146 wells in January 2010).