OREANDA-NEWS. June 19, 2007.  Oil production. The Oil Companies of the Republic of Tatarstan produced 2,764,149 tons of crude oil in May accounting for 103.2% versus the month of May in 2006. The amount of 13,345,700 tons of crude oil was produced during the period of five months or 102.76% versus the same period of the last year.

OAO TATNEFT produced 2,236,135 tons of crude oil in May accounting for 102.3% versus May of the previous year. The amount of 52,479 tons of crude oil (102.4%) was produced above the plan. The best results were achieved by NGDUs (Oil and Gas Production Boards) Elkhovneft   (104.5%), Almetyevneft (103.2%), Yamashneft, Leninogorskneft (103%). The amount of 2,229,944 tons was delivered with the above-the-plan delivery amounting to 86,644 tons.

The Oil and Gas Production Boards of OAO TATNEFT produced 10,805,864 tons of crude oil from the beginning of the year demonstrating growth in the amount of 206,087 tons versus the similar period of the previous year (101.9%). The above-the-plan production amounted to 207,614 tons of crude oil (101.96%). The best results were achieved by NGDUs (Oil and Gas Production Boards) Elkhovneft (104.5%), Yamashneft (103.0%), Leninogorskneft and Almetyevneft (102.3%).

The amount of 10,759,328 tons of crude oil was delivered by the first quality group with the above-the-plan delivery amounting to 444,028 tons.

Tatneft-Burenie (Drilling) Company executed the plan of drilling meterage for the first five months of 2007 by 107.1% with 341.5 thousand meters penetrated, including 225.8 thousand meters for OAO TATNEFT (109.2%), 115 thousand meters for Joint Ventures and small independent oil companies and 700 m - drilling for bitumen.

211 wells were constructed and handed over to customers including 124 wells (108.8% to the plan) for OAO TATNEFT, 86 wells for Joint Ventures and independent oil producing companies and drilling to the bitumen - 1 well

Well drilling operations with application of traditional drilling techniques were performed by 48 drilling crews. Two crews performed drilling into the producing layers in the balanced pressure mode and in the mode of underbalanced drilling (UBD). Three drilling crews performed drilling operations outside the Republic of Tatarstan with two of them operating in Samara District and one crew operating in Orenburg district.

The volume of horizontal wellbore drilling and sidetracking performed by Tatneft-Burenie (Drilling) Company amounted to 5,117 meters with 16 wells handed over to the customers for operation.

Penetration per one drilling crew amounted to 6,459 meters during the period of 5 months.

Workovers and EOR (Enhanced Oil Recovery) Methods

787 well remedial works were performed during the month of May while 3, 934 well remedial works were performed from the beginning of the year. Shortages in crude oil production due to the well remedial works and subsurface equipment repairs amounted to 90.8 thousand tons accounting for 10% reduction versus the similar period in 2006.

1,044wells were worked over during the period of five months of the current year (192 wells in May) including the production string sealing at 157 wells, shutting-off individual layers and recompletion in the other intervals in 200 wells, transfer of the wells into different categories and wells completion for injection in 81 wells, failure remedy and cleaning of the production casing and the bottomhole in 60 wells, physical abandonment and re-abandonment in 30 wells.

227 wells were worked over with application of coil tubing (34 wells in May) with 50 wells worked over through the annulus (10 wells in May).
 
Formation hydrofracking operations were performed at 42 wells (10 wells in May). The cumulative incremental crude oil production volume amounted to 1 million 439 thousand tons of crude oil.

Works on oil recovery enhancement were performed at 896 wells (183 wells in May) including chemical treatment methods applied at 572 wells (121 wells in May). The additional crude oil production through application of oil recovery enhancement methods amounted to 2 million 099 thousand tons (109% to the plan) with chemical methods accounting for production of crude oil in the amount of 993 thousand tons (47% of the total incremental crude oil production volume through application of oil recovery enhancement methods).

Neftechimservice Company produced 12 thousand 522 tons of chemicals for the amount of 239 million rubles.

Radial drilling projects were implemented at 16 wells by OOO RV-Plast Company including 12 wells for OAO TATNEFT (10 wells for NGDU Nurlatneft, 2 wells for NGDU Elkhovneft) and 4 wells for outside companies (3 wells for ZAO TatRITEK, 1 well for OAO Udmurtneft). The cumulative incremental crude oil production volume through application of radial drilling amounted to 120 thousand 479 tons.