EANS-News: Early and significant success in C.A.T. oil's 2014 tendering campaign
21.01.2014 – 10:02
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Subtitle: Tender worth EUR 281 million for the 2014-16 three-year sidetrack drilling contract awarded by Lukoil Additional tenders worth EUR 22 million awarded by Tomskneft-VNK and Slavneft-Megionneftegaz for 2014 The awarded orders reflect successful marketing of more than 70% of the Companys sidetracking capacity for 2014 CEO Manfred Kastner: The major three-year contract once again confirms the strong demand for our high quality services. Negotiations on additional tenders are well underway and we will report further good news in the coming weeks of the tender season. Company Information Vienna, 21 January 2014 (euro adhoc) - C.A.T. oil AG (O2C, ISIN: AT0000A00Y78),one of the leading providers of oil and gas field services in Russia and Kazakhstan, today announced an early and significant success in its 2014 tendering campaign. For a three-year period starting in 2014 the Company has been awarded a tender worth EUR 281 million (based on a rouble-to-euro exchange rate of 45) for a sidetrack drilling contract by its long-standing customer Lukoil. C.A.T. oil has thus successfully marketed 55% of its current sidetrack drilling operating capacities for 2014-16. In addition C.A.T. oil's subsidiary CATOBNEFT has succeeded in securing tenders for conclusion of further sidetrack drilling contracts worth EUR 22 million for 2014 by Tomskneft-VNK and Slavneft-Megionneftegaz. As the secured tenders reflect successful marketing of more than 70% of the Company's existing sidetracking capacities for the current year, C.A.T. oil is perfectly placed to accomplish its 2014 tendering campaign in the coming weeks. Manfred Kastner, CEO of C.A.T. oil, commented: "The tendering campaign is one of the most exciting events in the course of the year. It not only regularly provides us with a detailed insight into industry trends, market sentiment and mid-term production plans of our customers. The progress of the tendering campaign also reviews our standing in the market." Manfred Kastner continued: "As three-year contracts are less common in the Russian oilfield service market, the tender award by Lukoil underscores not only quality and efficiency of C.A.T. oil's services but also customers' growing appetite for multi-year contractual arrangements going forward. The major three- year contract once again confirms the strong demand for our high quality services. Negotiations on additional tenders are well underway and we will report further good news in the coming weeks of the tender season." The contracts' underlying sidetracking services will be accomplished primarily in the Kogalym, Megion and Tomsk regions in West Siberia. 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 400 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 Gazprom, Rosneft, Lukoil, TNK-BP 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 9M 2013 weighted average headcount stood at 2,673 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