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PRODUCTION / DAGESTAN

NeftGasInvest Capital Company the subsidiary of INTERCOM HOLDING Group of Companies puts in operation temporarily shut-in wells, carries out necessary operations to stimulate an output at North Dagestan oil deposits, including the first-rate Ozernoye deposit. At the same time the Company starts exploration and production drilling operations at oil and gas fields of Submontane Dagestan Makhachkala Tarky, Dmitrovskoye, Izberbash, Khamkhal Bulak.

The Company intends to participate in tenders to purchase licenses of perspective areas for geological study for hydrocarbons deposits exploration and estimation.

Dagestan Republic

Financial and Industrial Company (FIC) Neftegasinvest capital Ltd. concluded the oil and gas wells reconstruction and repair treaty in March 2003 with the first-rate hydrocarbon production enterprise JSC NK Rosneft-Dagneft operating in Dagestan.

This agreement is fulfilled by specialized FIC Neftegasinvest capital Ltd. subdivision, which has license ( 00--001064 ()) for the following forms of work:

1. Drilling, liquidation and temporary closing down of hydrocarbon production wells, liquidation and temporary closing down of other hydrocarbon production installations.

2. Exploitation of oil and gas wells including the engineering service, stimulation of the reservoir recovery, open oil and gas springs liquidation.

3. Exploitation of oil, gas and condensate collecting systems, conditioning these raw materials to commodity standards.

4.Exploitation of formation pressure sustain and layer impact systems.

5. Well testing works, development of oil and gas extracting wells, carrying out geophysical and geodynamic investigations.

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 7000 tons of high-quality oil, which was exported.

Wells repair work at the fields Sukhokumskoye, Yuzno-Sukhokumskoye, Levanevskoye, Mayskoye and Rhifovoye is in the closest prospects, and itll enlarge the well stock up to 30 wells with annual output of about 200000 tons.

In addition to the repair work FIC Neftgasinvest capital Ltd. plans to drill several exploratory holes jointly with JSC Dagneft structures.


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JSC "INTERCOM HOLDING"
Russia, 109012, Moscow, ul. Nikolskaya, 17 b.1
Phone: (+7 095) 933-7502 E-mail:
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