OGEC Cracow Expands into Kazakhstan, Latvia and Africa

Oil & Gas Exploration Company Cracow Ltd., a member of PGNiG SA Capital Group, has signed new contracts in Asia, Africa and Europe. OGEC Cracow will drill for oil and gas on these three continents and thereby will perform its strategy to strengthen its position and trade mark on international markets. The Company's target is the utilization in the best possible way its qualified and experience personnel and its drilling equipment.

In the beginning of May, OGEC Cracow has signed the contract with the Kazach company, Kazakhmys Petroleum belonging to the international holding, Kazakhmys PLC, listed on the London Stock Exchange. The contract signed between OGEC Cracow and Kazakhmys Petroleum covers exploration using the N 1625 drilling rig. It is one of the heaviest rigs available in this market and the largest in Europe, which can drill wells up to 10 thousand meters. During the last six months OGEC Cracow used this rig to carry out drilling works for EmbaJugNieft company. For the new client the works will be performed in the region located south of the city of Aktobe on Akzar concession (north-west Kazakhstan). The rig will drill wells up to 5,600 meters as required by the operator. The rig will be operated by 100-person team consisting of both Polish and Kazakh employees. The above mentioned contract has been signed for one year with a possibility of extension. Additionally, the talks have been carried out on a possibility for the same operator to use more drilling rigs from OGEC Cracow.

OGEC Cracow has also successfully completed drilling works in Africa according to the contract signed with international operator Sasol Temane Limitada. In order to strengthen its position on international oil markets, OGEC Cracow has already commenced new drilling works. This time the contractor is the Norwegian company, DNO International ASA. The contract, signed for one year with a possibility of extension, will be carried out by an international team.

OGEC Cracow has expanded into Latvia, Europe's newest market. Alina Limited Liability Company, with its headquarters in Riga, has contracted OGEC Cracow to carry out drilling works in Latvia using the A 50 rig. The contract includes typical reconstruction works on oil and gas wells aiming at intensification of hydrocarbons extraction from already existing wells. The A 50 has been already dispatched from Poland to Latvia.