EANS-News: Agreement with Gazprom Neft ensures full utilization of new capacities until end of 2016
24.06.2014 – 08:30
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Subtitle: Framework agreement guarantees full utilization of four new drilling rigs and one new fracturing fleet until end of 2016 Roll-out of 2014-16 investment program fully on track CEO Manfred Kastner: The agreement provides planning security and improves our mid-term revenue visibility. Industry trends remain encouraging and we continue to experience a supportive operating environment laying the basis for a successful 2014. Company Information C.A.T. oil AG (O2C, ISIN: AT0000A00Y78),one of the leading providers of oil and gas field services in Russia and Kazakhstan, signed a framework agreement with Gazprom Neft on drilling and hydraulic fracturing services on 17 June 2014. The agreement guarantees full utilization of four new drilling rigs and one new fracturing fleet until end of 2016 and foresees conclusion of respective service agreements between the operating subsidiaries of Gazprom Neft and C.A.T. oil. The new drilling and fracturing capacities will be successively deployed in the field from September to December 2014 and are part of C.A.T. oil's growth strategy. In November 2013, C.A.T. oil announced its 2014-16 investment program of EUR 390 million aiming at expansion of its operating capacities by around 33% for fracturing, 55% for sidetracking and 170% for drilling by the end of 2016 compared to the end of 2013. For 2014, C.A.T. oil has ordered six drilling rigs, four sidetracking rigs and one fracturing fleet. Execution of the program and manufacturing of the ordered new capacities are fully on schedule. Manfred Kastner, CEO of C.A.T. oil, commented: "We appreciate the framework agreement signed with Gazprom Neft, one of our longest-standing customers. The agreement provides planning security and improves our mid-term revenue visibility. At the same time it demonstrates the industry's accelerating demand for technologically advanced services and the interest to secure capacities over a longer period of time. Industry trends remain encouraging and we continue to experience a supportive operating environment laying the basis for a successful 2014." www.catoilag.com Press contact: FTI Consulting Thomas M. Krammer Phone: +49 (0)69 92037-183 Email: thomas.krammer@fticonsulting.com Steffi Fahjen Phone: +49 (0)69 92037-115 Email: steffi.fahjen@fticonsulting.com About C.A.T. oil AG: C.A.T. oil AG is one of the leading independent oil and gas field service contractors in Russia and Kazakhstan and is listed on the Frankfurt Stock Exchange (SDAX). C.A.T. oil provides a range of high quality services, which enable oil and gas producers to extend lifecycle of their fields or bring yet unexploited oil and gas reserves to production. Since its foundation in 1991 in Celle, Germany, C.A.T. oil has built up a leading hydraulic fracturing service, a very effective method of well stimulation by cracking rock formations with pressurized fluids, in Russia and Kazakhstan. Following its IPO in 2006, the Company developed a second core service of sidetrack drilling in 2006-08 and has established a strong presence in Russia's sidetrack drilling market. Sidetrack drilling is a term used to describe drilling of a new wellbore from the upper section of an existing well. In 2011-12, the Company launched the next phase of its growth and diversification strategy and set up high class drilling operations as a third core service offering. High class drilling is the classical technology of drilling vertical, inclined and horizontal wells for extraction of oil and gas. In total, the Company has already invested more than EUR 450 million in growth and diversification since its IPO in 2006. Following the successful set up of high class drilling in 2011-12, C.A.T. oil introduced its new segment reporting in 2013 clustering its activities in "Well Services" (fracturing, cementing and completion operations) and "Drilling, Sidetracking and IPM (Integrated Project Management)". C.A.T. oil's customer base includes the leading Russian and Kazakh oil and gas producers such as Rosneft, Lukoil, Gazprom Neft, Tomskneft VNK, Slavneft, Russneft and KazMunaiGaz. The Company has long-standing relationships with these customers and has been a reliable service provider since its market entrance in the early nineties. C.A.T. oil has its headquarters in Vienna. The Company's Q1 2014 weighted average headcount stood at 2,837 people, most of which are based in Russia and Kazakhstan. Further inquiry note: Thomas Krammer Tel: +49(0)69-92037-183 Email: thomas.krammer@fticonsulting.com end of announcement euro adhoc -------------------------------------------------------------------------------- company: C.A.T. oil AG Kärntner Ring 11-13 A-1010 Wien phone: +43(0) 1 535 23 20 - 0 FAX: +43(0) 1 535 23 20 - 20 mail: ir@catoilag.com WWW: http://www.catoilag.com sector: Oil & Gas - Upstream activities ISIN: AT0000A00Y78 indexes: SDAX, Classic All Share, Prime All Share stockmarkets: regulated dealing/prime standard: Frankfurt language: English