Premier Energy has announced its planned activities in Russia for 2009. Premier Energy Corp. is a U.S. based international oil and gas company with current operations in Russia through its majority-owned subsidiary, Karbon CJSC. Karbon holds exploration and production license and operates the North-Kopanskoye Oilfield in the Volga-Urals Basin, close to Orenburg and Kazakhstan border.

The Volga-Urals Basin, the second most prolific petroleum province in Russia, has been substantially explored and depleted by large Russian oil companies since 1960s. The Basin has a well established oil infrastructure and producing tradition, including existing pipelines and refineries, available oilfield equipment and services, and skilled labor. Smaller regional developers have been looking there lately for bypassed oil and gas fields with significant potential to make up for the disappearing production.

The North-Kopanskoye is such a field. Over the past two years, Karbon has obtained Rosnedra's approval for the field Development Basis as well as environmental acceptance including SibNIINP's developed norms for technological wastes and Rosteknadzor's approval of the emission rates of air pollutants. Karbon has already drilled and completed one development well, put on production in 2007.

Premier Energy and Karbon have a well-functioning organization with Russian and Western experience, expertise and technology, including in-country knowledge with direct access to key specialists and operational organizations.

In line with the current plans to increase production rate and further develop the North-Kopanskoye Oilfield, Karbon has negotiated the following work agreements for 2009, subject to timely funding of the planned activities:

• Russian companies Almaz Service and ServiceNefteGaz to start the work-over by mid-May on four existing wells to enhance oil production rates.
• Russian companies Orenburg Drilling Company (OBK) and Orenburg Oil & Gas Exploration Drilling Company (ONBK) to mobilize by mid-May to drill and complete three new development wells.
• American geophysical company Paradigm Ltd to start a 3D seismic survey by the end of May to refine geologic information, increase reserves and designate further drill sites.

Karbon owns a 2-km export pipeline tied to the GazpromNeft trunk-line that will enable pipeline transport of the entire North-Kopanskoye oil production.