PetroKamchatka Spuds Second Russian Well

PetroKamchatka started drilling the Chernorechenskaya 1P well on April 15, 2010. This well, located on the Tigil Exploration Block in Kamchatka, Russia, is expected to be drilled to a total depth of 3,300 meters.

PetroKamchatka is continuing to evaluate the technical information obtained at the Oyarskaya 1P well, which was suspended in January 2010. Preliminary biostratigraphic studies indicate that the primary target sands were not reached in the original wellbore. The preliminary interpretation of the vertical seismic profile indicates a possible deeper basement reflector at a depth within the drilling capacity of our rig. Additional geological formation evaluation studies are underway and these studies, plus the results of the Chernorechenskaya well, will provide key input to any future decision to potentially re-enter the well and drill to the deep target at Oyarskaya.