Drilling Set to Start on First Lagansky Block

Gazprom and Lundin Petroleum AB will begin drilling of the Morskaya #1 well of the Lagansky Block in the second quarter due to the winter period start up in the northern Caspian.

The parties plan to drill at least one more well in 2008.

The Lagansky Block is located in the northern part of the Caspian Sea offshore area. The Morskaya, Laganskaya and Petrovskaya perspective zones are located in the territory of the block. The Rakushechnoye, Severo Rakushechnoye, Filansky and Korchagin fields are located near the Lagansky block. The potential reserves of the block exceed 800 MMboe.

In July 2007, Gazprom and Lundin Petroleum AB signed a call option to purchase a 50% stake plus one share of the company, which owns the license for the Lagansky block development.