PGNiG Spuds Another Well in Egypt

At the end of December 2006, an exploration company of the PGNiG Group - Poszukiwania Nafty i Gazu NAFTA Sp. z o.o. based in Pila – started drilling another well in Egypt.

The company is carrying out a drilling program in Egypt under a long-term contract concluded in 2006 with the Egyptian company Vegas Oil and Gas S.A.

Currently, the drilling efforts concern the Al-Borq-1X well located in the North-West of the country, approximately 350 kilometers from Cairo. Previously, within 90 days, the company drilled the Al-Karam-2X well up to the depth 4,700 meters. At the moment, the well is undergoing production tests.

Bt the end of January 2007, Nafta will start drilling work for an U.S. investor exploring for hydrocarbons in Egypt – Apache West Kanayes Corporation Ldc.

Apart from Egypt, in 2007, PNiG NAFTA Sp. z o.o. of Pi³a will continue the current drilling program in India (for Jubilant Oil and Gas Pvt. Limited and Hindustan Oil Exploration Company Ltd) and in Hungary (for MOL).

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