OREANDA-NEWS. March 16, 2010. According to the Fuel and Energy Ministry press service announcement in February 2010, the extraction of crude oil and gas condensate fell by 10% compared with February 2009, to 282,300 tons. Thus, Ukrnafta <UNAF UK HOLD> reduced its crude oil and gas condensate extraction by 11.2% to 200,600 tons.

Millennium Capital: this news is strongly negative for the Company and is in line with our forecasts (you may find it in our Trade Idea "Got no money for progress". This reduction in the extraction has been due to lack of UNAF investments into new fields’ exploration in 2009 against the backdrop of political instability, the internal corporate conflict, and an expensive utilization of depleted fields.