Indusmin Energy to Drill Second Ukraine Well Soon

Indusmin Energy has entered into a contract to rework well #11 at Krasnopolanske field in the Crimea, Ukraine as part of the work program for developing the Kerch project.

The work will start September 1st and will be completed by October 20th. This is the second well that the company is working on, previous rework on the well #5 in the same field produced and open outflow of 53 thousand cubic meters per day back in January 2002. Another two reworks will follow the well #11 within the present year. The company has also entered into a Gas sales contract with Crymproectstroy, Ltd., a Crimean company, to sell up to sixty thousand cubic meters per day at the wellhead; Crymproectstroy, Ltd. is finishing the installation of a set of powers generators in the same area for gas from well #5 and well #11.

"Everybody in the company as well as our partners are very excited about moving the project another step forward; this second rework is the consolidation of the Kerch project as a valuable enterprise and the gas sales contract is generating revenues starting next month." Carlos Munoz, President & CEO.