Gobustan Awards Azerbaijan Rig Tender

A&B Geoscience Corporation's affiliate Gobustan Operating Company awarded tenders for a 2500m drilling rig and an advanced technology service rig. Eight companies were invited to participate in the tender and the tender was awarded to the China based drilling company, Great Wall Drilling. It is anticipated that the new rigs will be on site and operational by mid July of this year.

The new drilling rig will supplement the existing rig, enabling the company to undertake a two rig program to facilitate timely completion of the drilling requirements of the Minimum Obligatory Work Program. The company's first development well in Azerbaijan, Dashgil 91, is close to completion and the rig will then move on to drill the second development well, Dashgil 92.

The new service rig will supplement the existing service rig for deep and more complicated completion and workover activities. The new service rig is also equipped to drill shallow wells (less than 1000m) and will be used for re-entering and side tracking existing infield wells. The service rig now in place is currently working over Dashgil well 71 which is the last well required to complete the Minimum Obligatory Work Program.

Gobustan Operating Company is the operating subsidiary for the development and production of the South West Gobustan fields covered under the Production Sharing Agreement with the SOCAR, in which Commonwealth Gobustan Limited (CGL) has an 80% interest, with the remaining 20% held by SOCAR Oil Affiliate. ABG owns 37.17% of CGL and the balance is held by China National Petroleum Company (CNPC) group companies.