C.A.T. oil Continues to Push Its Growth and Diversification Strategy
Strategic objective to leverage efficient sidetrack drilling platform
and diversify into high-end conventional drilling services
First conventional drilling tender awarded by Russneft
Two new sidetrack drilling rigs already in operations
March 24, 2011 ? C.A.T. oil AG (O2C, ISIN: AT0000A00Y78), one of the
leading providers of oil and gas field services in Russia and Kazakhstan
continues to push its growth and diversification strategy. The 2011-12
investment program of EUR 150 million aims at expanding into the strong
growing conventional drilling business and at strengthening the existing
sidetrack drilling and fracturing businesses.
In this context the two new sidetrack drilling rigs, which had been
delivered in January, have successfully been deployed in late February.
They have accomplished their first wells in a timely manner and have
been operational with high utilization levels at Rosneft′s Yugansk
production area in West Siberia. Compared to the end of 2010, the
addition of these two rigs constitutes a 13% increase in the company′s
sidetrack drilling capacities and increases C.A.T. oil overall sidetrack
drilling capacities to a total of 17 rigs.
In addition, C.A.T. oil was awarded its first tender for conventional
drilling which will become the third core business in the second half of
2011. The tender is worth EUR 2.25 million and was received from C.A.T.
oil′s customer Russneft.
Manfred Kastner, CEO of C.A.T. oil, said: 'We are very pleased that we
have received our first conventional drilling tender by Russneft at this
early stage. The award confirms our quality track record and represents
a good starting point to expand into the strongly growing new business
segment.' Mr. Kastner continued: 'We are encouraged in our primary
strategic objective to leverage our efficient sidetrack drilling
platform laying the foundations for further growth and diversification
of our business. With respect of the implementation of our capacity
expansions, we are well on track.?
As part of the expansion into conventional drilling operations, C.A.T.
oil has ordered nine new 1,100 HP North American conventional drilling
rigs, which will be delivered to Russia during the course of the second
half of 2011. C.A.T. oil expects that at least four out of the nine
ordered new conventional drilling rigs will be put into operations
before the end of the year.
'The award of our first conventional drilling tender enables the
immediate utilization of the first new rig upon its delivery to the
Russneft sites in July. We are confident to significantly capitalize on
our strong market position and customer relationships which will enable
us to receive additional orders during the year,? Manfred Kastner said.
C.A.T. oil will publish its results for Fiscal Year 2010 on April 28,
2011.
C.A.T. oil Investor Relations
ir@catoilag.com
or
Financial
Dynamics
Carolin Amann
D +49 (0)69 920 37-0
