“Intercom Holding” Group of Companies is investing in oil-and gas projects on development of subsurface license areas, which belong to Holding’s subsidiaries: OOO “FPK Neftgazinvestcapital”, OOO “Saratov-Nedra”, OOO “Komioil”.

In relation to raw hydrocarbons reserves and recovery Holding plans to:

• Increase oil and gas recovery:

Volume of output will make 3,5 millions of barrels, minimum - by the end of 2005;

- 35 millions of barrels annually, minimum - by the end of 2007.

• Increase Holding’s production basis.

Total oil stock of deposits will make:

1,5 billions of barrels up to 2007;

15 billions of barrels up to 2010.

“Intercom Holding” Group of Companies cooperate (and open for new cooperation), as investor and subsurface user, with authorities of republics, territories, regions and with Russian Ministry of Natural Resources (MNR) territorial administrations. Such cooperation takes place in a form of tenders and auctions for geological study and development of deposits in the following regions:

1) Komi Republic

2) Nenets Autonomous Region

3) Arkhangelsk region

4) Tyumen Region

5) Khanty-Mansiysk Autonomous Region

6) Tomsk Region

7) Perm Region

8) Saratov Region

9) Dagestan

10) Volgograd Region

11) Astrakhan Region

12) Orenburg Region

License areas and fields of ‘Intercom Holding” Group of Companies.

Brief description:

1. Dagestan Republic

OOO “Financial and Industrial Company (FIC) “Neftegasinvest capital” concluded agreement in March 2003, for a period of 10 years, for oil wells reconstruction and repair (on the basis of license № 00-ЭН-001064 (ДН), issued on 25 April 2003) with the first-rate hydrocarbon production enterprise operating in Dagestan - OAO “NK “Rosneft-Dagneft”. 5 wells have been set in operation. We plans to increase the number of wells under operation to 50 by the end of 2004. Several wells of the North Dagestan oilfields (Tianetskoye, Centralnoe, Solonchakovoe, Ozernoe), which had been temporarily shut-in for 10 years were repaired. At the beginning of 2004 their output amounted to more than 100 000 barrels of high-quality oil, which was exported.

In addition to the repair work OOO “FIC “Neftgasinvest capital” plans to drill several exploratory holes at offshore and shore zones of Dagestan jointly with OAO “NK “Rosneft-Dagneft” structures.

2. Saratov Region

The incorporation of OOO “Saratov Nedra” into “Intercom Holding” Group of Companies in September 2003 started realization of oil-and-gas projects in Saratov region.

The structural subdivision of “Intercom Holding” Group of Companies - OOO “Saratov Nedra” has license of geological study at Yeruslanskiy area for exploration and evaluation of hydrocarbons deposits. The license area, which amounts to 1300 square km, is located in Krasnokhutskiy and Piterskiy districts of Saratov Administrative region. Tectonically the area is situated in the internal zone of the Caspian Side depression northwest part. The Presalt and Subsalt oil-and-gas bearing complexes (at a depth of 800-6200 meters) show the prospects of Yeruslanskiy area. The hydrocarbons resources of the area are estimated at 2 311 180 000 barrels of equivalent fuel. According to the results of a tender for contractors, OOO “Saratov-Nedra” selected OAO “Saratovneftegoephysica” to carry out detailed seismic prospecting operations of CMP-2D method in a volume of 470 linear km. On the 1^st of June 2004 there were completed seismic prospecting operations of 470 linear km, Presalt structures were delineated, seismic data for 1100 km were processed. By the end of the current year we plan to drill new wells (about 10 in number) within the territory of the area. Approximate resources of oil within delineated Presalt structures amount to several dozens of millions of tons.

On discovery of deposits it is supposed to place priority substantial investments into explorations, trial and commercial operation to increase the volumes of production of oil, gas, gas condensate, products of refining and processing and their realization on domestic and foreign markets.

3. Komi Republic

“Intercom Holding” Group of Companies considers Tymano-Pechorskaya province of Komi Republic and Nenets Autonomous region as a priority line of oil-and-gas projects development.

OOO “Komioil” with a legal address in Syktyvkar was founded within the framework of the Holding for realization of the projects at Komi Republic. “Komioil” Ltd. has got subsurface user right licenses of 3 areas: Yuzno-Zverinetskiy, Zverinetskiy-I and Zverinetskiy-II. The license areas are situated at the territory of Pechoro-Kolvinskaya oil-and-gas bearing region. At the moment of the issue of licenses the areas resources were estimated at 185 040 000 barrels of oil. The territory of Usinskiy administrative region of Komi Republic is the location of Yuzno-Zverinetskiy, Zverinetskiy I, II areas. The Usinsk city is situated at a distance of 35 km from the east border of the area and the railway line links it to the North Railroad. Usinsk-Yaroslavl oil pipe line and gas pipe line to the city Pechora have been built close to railway line. The water transport way is Pechora-River.

Within Yuzhno-Zverinetskaya area there were drilled two wells: Lekjuskaya and Yuzno-Zverinetskaya, which discovered indications of oil within the section and presense of Upper-Devonian reefs..

In 2004-2005 winter season we proceed to well tests for Upper-Devonian reef structures (at a depth of 4300-4400 meters) within Yuzhno-Zverinetskiy area, and plan to discover Zverinetskoye and Lekjuskoye oil fields with reserves of up to 30 millions of tons. Within the section we expect gas-condensate pools at Terrigenous-Devonian and Silurian sediments at a depth of up to 5000 meters. At the territory of license blocks (total area – 3000 square km) within all of the promising oil-and-gas-bearing complexes (depth from 2000 to 5000 meters) we expect to discover 10-15 pools with recoverable reserves of more than 50 millions of tons.

“Intercom Holding” Group of Companies shows high interest in acquisition of oil fields at Nenets Autonomous Region and Khanty-Mansiysk Autonomous Region. Those are the oil fields with total recoverable reserves of oil of more than 5 billions of barrels. For acquisition and development of aforesaid fields “Intercom Holding” Group of Companies needs from minimum USD 200 000 000 (for acquisition) to USD 5 000 000 000 (for total development).

“Intercom Holding” Group of Companies plans the volume of capital investments of more than USD 3 000 000 000 for 5 years and plans to reach the crude oil production level of up to 70 000 000 of barrels annually.