EANS-News: Agreement with Gazprom Neft ensures full utilization of new
capacities until end of 2016
--------------------------------------------------------------------------------
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
