OREANDA-NEWS. September 13, 2010.

Crude Oil Production
OJSC TATNEFT produced 2,200,271 tons of crude oil in August with the above-the-plan production amounting to 42,952 tons of crude oil (102%) and 17,215,803 tons of crude oil from the beginning of the year amounting to 18,336 thousand tons surplus compared to the amount of 2009 (100.1%). The above-the-plan production amounted to 305,904 (101.8%), reported the press-centre of TATNEFT.

Crude oil production for TATNEFT Group of Companies amounted to 17,380,949 tons of crude oil during the period of eight months with the above the plan production amounting to 306,587 tons.

Drilling
New Drilling
The penetration during 8 months of 2010 amounted to 438.6 thousand meters (398 thousand meters in 2009):

- 364.3 thousand meters were drilled for OJSC TATNEFT (334 thousand meters in 2009), including 350.0 thousand meters of production drilling and 14.3 thousand meters of exploratory drilling;

- 14.9 thousand meters were drilled for OJSC TATNEFT's subsidiaries and affiliated companies (27 thousand meters in 2009), including 6.7 тыс thousand meters of production drilling and 8.2 thousand meters of exploratory drilling;

- 59.4 thousand meters (37 thousand meters in 2009) were penetrated for joint ventures and independent oil companies, including 51.7 thousand meters of production drilling and 7.7 thousand meters of exploratory drilling.

Totally 295 wells (246 wells in 2009) were constructed and handed over to customers and out of this amount:

- 216 wells (203 wells in 2009) were delivered to OJSC TATNEFT with 209 production wells and 7 exploratory wells;

- 10 wells (13 wells in 2009) were drilled for OJSC TATNEFT's subsidiaries and affiliated companies with 7 production wells and 3 exploratory well;

- 69 wells (30 wells in 2009) were penetrated for joint ventures and independent oil companies, including 64 production wells and 5 exploratory wells.

Drilling in the Old Well Stock
Penetration of sidetracking and horizontal wellbores for eight months of 2010 amounted to 23.3 thousand meters (20.3 thousand meters in 2009):

- 14.7 thousand meters were penetrated for OJSC TATNEFT (12.5 thousand in 2009)

- 8.6 thousand meters were drilled for joint ventures and independent oil companies (7.8 thousand meters in 2009).

Totally 60 wells were delivered to the customers (58 wells in 2009):

- 42 wells were delivered to OJSC TATNEFT (41 wells in 2009);

- 18 wells were delivered to joint ventures and independent oil companies (17 wells in 2009)

In 2010, 38 drilling crews performed drilling of new wells. 9 drilling crews were engaged in sidetrack penetration and drilling horizontal wellbores. Penetration per one drilling crew engaged in new drilling amounted to 11,538 meters, while in 2009 the penetration per crew amounted to 9,603 meters.

17.9 thousand meters were penetrated outside the Republic of Tatarstan. 46.5 thousand meters were penetrated in horizontal wells and multi-branched downhole splitters.

Well Repair Operations
769 well remedial operations were performed in August and 5,741 remedial operations were performed during the period of eight months, i.e. 672 wells or 10.5% less than in 2009 (6,413 wells during 8 months of 2009).

37 well repair operations were performed in Tatneft-Samara from the beginning of the year, including 16 well remedial operations and 21 workover operations (23 repair operations during the period of eight months).

The workover operations were performed at 1,767 wells during eight months of 2010 (227 operations in August and 1,375 operations during the period of eight months in 2009), including: production string sealing in 279 wells; shutting-off individual layers and recompletion in other intervals in 204 wells; transfer of wells into different categories and wells completion for injection in 107 wells; failure liquidation and cleaning of the electrical cable and bottom hole areas in 221 wells, physical abandoning and re-abandoning in 24 wells.

569 wells were worked over with application of coil tubing (75 wells in August and 360 wells during the period of 8 months of 2009), including 127 wells worked over through the annulus.

Formation hydrofracking operations were performed in 171 wells (24 wells in August and 87 wells during the period of 8 months in 2009). The cumulative incremental oil recovery amounted to 3,460 thousand tons.

18 small diameter holes were drilled and competed for TATNEFT from the beginning of the year. At present there are 2 crews engaged in drilling the holes with one of them performing drilling operations for NGDU Aznakaevskneft while another one performs drilling for NGDU Prikamneft.

Works on oil recovery enhancement were performed at 1,595 wells (236 wells in August and 1,184 wells during the period of 8 months) , including chemical treatment methods applied at 930 wells (139 wells in August and 678 wells during eight months of 2009).

The incremental oil production resulting from application of the enhanced oil recovery methods amounted to 3 million 522 thousand tons (3,419 thousand tons during 8 months of 2010) with chemical methods accounting for production of 1 million 698 thousand tons (1,631 thousand tons for the period of 8 months of 2009).