Indusmin to Re-work Krasnopolanske #1 Well in Crimea

Indusmin Energy has entered into contracts to rework Krasnopolanske Field Well #1 in Crimea, Ukraine as part of the work program for developing the Kerch project.

The works will start April 12th and will be completed by the end of May according to the agreements with the service companies. This is the third well that the company is completing. In January, 2002 the company successfully re-worked well #5 (providing an open outflow of 53 thousand cubic meters per day) and most recently re-worked well #11 (providing an open outflow of 46 thousand cubic meters per day) in the same gas field.

The company has also opened a private tender for engineering the project of a Gas Treatment Plant (GTP), with a further tie-in to the main pipeline that runs less than 8km from the Krasnopolanske field. The GTP will have an initial capacity for processing up to 100,000 cubic meters per day as stable outflow, and will be upgraded as new wells are commissioned into production. The tender closes April 15, 2004, and the GTP project is scheduled to be completed during August.

"After succeeding with wells #5 and #11, the company is in position of developing an operational GTP to actually start selling gas through the main pipeline that runs nearby our properties. The company is finalizing details with Krymgas for a long term Gas Sales Contract, as we will be using their infrastructure. Well #1 is the last rework to be done in Krasnopolanske field, and it will be followed by a deeper new well in order to improve the outflow," stated Carlos Munoz, President & C.E.O.