OREANDA-NEWS. April 10, 2008.Oil production. The crude oil production in the Republic of Tatarstan amounted to 2,762,276 tons accounting for 100,9% versus the month of March of 2007. The crude oil production amounted to 8,063,850 tons during the period of three months or 101,8% versus the same period of the last year, reported the press-centre of TATNEFT.

OAO TATNEFT produced 2,225,134 tons of crude oil in March accounting for 100.4% versus the month of March of the previous year with the above-the-plan production amounting to 26,809 tons (101,2%). The best results were achieved by NGDU's (Oil & Gas Production Boards) Elkhovneft (103,6%), Almetyevneft (101,5%), Aznakaevskneft (101,4%). The amount of 2, 171,544 tons of crude oil was delivered with the above-the-plan delivery amounting to 29,144 tons.

OAO TATNEFT produced 6,500,165 tons of crude oil during the period of three months with the amount of 86,133 tons of crude oil in excess of the amount produced during the similar period of the previous year (101,3%). The above-the-plan production amounted to 74,028 tons of crude oil (101,2%). The best results were achieved by NGDU's (Oil & Gas Production Boards) Elkhovneft (103,4%), Aznakaevskneft (101,4%), Almetyevneft (101,2%).

The amount of 6,344,726 tons of crude oil was delivered, while the above the plan production amounted to 83,526 tons.

Drilling
The plan of drilling meterage for the first quarter was executed by 100,8% with 176,9 thousand meters penetrated, including 122 thousand meters drilled for OAO TATNEFT including  110.8 thousand meters of production drilling and 11,2 thousand meters of exploratory drilling respectively;  54,9 thousand meters for joint ventures and Independent oil companies including  42,7 thousand meters of production drilling and 12,2 thousand meters of exploratory drilling respectively.

97 wells were constructed and handed over to customers; among them  64 wells were constructed for OAO Tatneft  including 59 production wells and  5 exploratory wells; 33 were constructed for joint ventures and Independent oil companies including  32 production wells and one exploratory well.

Well drilling operations with application of traditional drilling techniques were performed by 47 drilling crews. Additionally one crew performed drilling into the producing layers in the balanced pressure mode at three horizontal wells for NGDU Bavlyneft.

Penetration for multirateral and horizontal wells for OAO TATNEFT amounted to 22 thousand meters.

Of this total number of the drilling crews one drilling crew performed drilling of an exploratory well for Podzemburgaz Company under the program of the Republic of Tatarstan for construction of the underground gas storage facility. Drilling operations were performed by four crews outside Tatarstan in Samara District.

Penetration per one drilling crew amounted to 3,723 meters during the period of 3 months.

Workovers and EOR (Enhanced Oil Recovery)
2,373 well remedial works were performed during the period of January-March of 2008. 617 wells were worked over during the period of two months in 2008 including the production string sealing in 95wells; shutting-off individual layers and recompletion in the other intervals in 75 wells; transfer of the wells into different categories and wells completion for injection in 49 wells; well failure remedy and cleaning of the production casing and the bottom hole in 66 wells; physical well abandonment and re-abandonment in 7 wells.

151 wells were worked over with application of coil tubing with 39 wells worked over through the annulus.

Formation hydrofracking operations were performed at 32 wells. The incremental cumulative production amounted to 1,973 thousand tons.

Two crews of Tatneft-LeninogorskRemService Company drilled and completed four small diameter wells in the first quarter of 2008 with two wells drilled for NGDU Almetyevneft and for NGDU Prikamneft, respectively.

Works on oil recovery enhancement were performed at 460 wells during the reporting period including the chemical treatment methods applied at 296 wells. ООО Tatneft- ChimService fulfilled the assignment of the first quarter in all NGDUs. The incremental oil production resulting from application of the oil recovery enhancement methods amounted to 1 million 272 thousand tons with chemical methods accounting for production of 601 thousand tons.

OOO Tatneft-ChimService performed 583 services for preparation and delivery of acid based compositions.

OOO Tatneft-ChimService produced 8 thousand 274 tons of chemicals for the amount of 166 million rubles during the period of three months of 2008.