OREANDA-NEWS. Eurasia Drilling Company Limited ("EDC" or the "Company" - LSE: EDCL), announced its consolidated financial results for the year ended December 31, 2012, prepared in accordance with US GAAP.

The audited Consolidated Financial Statements for the twelve months ended December 31, 2012, including restated amounts for the years ended December 31, 2011 and 2010, and EDC's Management Report on its 2012 results, can be found at the following link: http://www.eurasiadrilling.com/financial_information.html

2012 FINANCIAL HIGHLIGHTS:

· Top line revenue up 17% to USD 3,237 million (2011 adjusted: USD 2,767 million);

· EBITDA increased 31% to USD 790 million (2011 adjusted: USD 603 million);

· EBITDA margin amounted to 24.4% (2011 adjusted: 21.8%);

· Net Income increased 35% to USD 382 million (2011 adjusted: USD 283 million);

· Diluted earnings per share up 34% to USD 2.59 (2011 adjusted: USD 1.93);

· Capital expenditures were USD 620 million (2011 adjusted: USD 400 million);

· Net debt as of December 31, 2012 was USD 395 million (December 31, 2011 adjusted: USD 243 million).

W. Richard Anderson, EDC’s Chief Financial Officer, commented:

”We are pleased to have delivered another record year of performance which was a result of exceptional execution. We achieved record Revenue, Net Income and EBITDA in 2012 on the back of strong demand for our services and our proven reputation as a reliable service provider. These results reflect our success in organic development, deployment of new equipment from our targeted CAPEX program and successful integration of strategic acquisitions targets. Our focus on maintaining tight cost controls in spite of an evolving mix of services, led to significant improvement in our EBITDA margin.”

2012 OPERATIONAL HIGHLIGHTS:

· Drilled 6.051 million metres onshore in 2012; 27% greater than 2011 (4.777 million metres) and a new record for the Company;

· Horizontal metres drilled in 2012 were down by about 2% to 862 thousand metres;

· Exploration drilling volumes were up 26% during 2012 compared to 2011;

· The share of our largest customer, LUKOIL, was 57% of our total metres drilled during 2012, as compared to 55% during the corresponding period of 2011; however, LUKOIL drilling volumes increased by 30% for the same period;

· The share of Rosneft, our second largest customer, was 24% of our total metres drilled during 2012 as compared to 19% during 2011;

· Our market share increased to approximately 29% based on metres drilled onshore in Russia during 2012, up from 25% in 2011;

· During 2012 our ASTRA jack-up rig was employed in Russian and Kazakh waters of the Caspian Sea;

· Our SATURN jack-up rig continued its operations for PETRONAS Carigali (Turkmenistan) Sdn Bhd (PETRONAS) in Turkmen waters of the Caspian Sea; during 2012 four geological sidetracks were performed and two wells were drilled;

· We drilled and completed six wells on LUKOIL's Yuri Korchagin field platform in the Caspian Sea including five extended-reach horizontal development wells;

· Modules of our 3rd jack-up rig, the new-build NEPTUNE, were shipped to the Caspian Sea from Lamprell's shipyard in the UAE during 2012.

2012 STRATEGIC HIGHLIGHTS:

· In September 2012 EDC signed a multi-year contract extension with PETRONAS for drilling offshore in Turkmenistan, effective from January 9, 2013;

· In April 2012 we contracted Lamprell to build our 4th jack-up drilling rig, the MERCURY, for our operations in the Caspian Sea; and

· In July 2012 we acquired two onshore drilling rigs in Iraq and later in the year added two more rigs, which are contracted to international customers.

Dr. Alexander Djaparidze, EDC’s Chief Executive Officer, added:

“Outstanding performance in all our business segments enabled us to achieve another year of record financial and operational results in 2012. We continued to invest in technology and our people which allows us to provide continuously better services to our customers. In 2012 we achieved our highest rig fleet utilization rate ever and our crew’s operating efficiency was the best in our history. In 2012 we completed several strategic initiatives to strengthen our onshore and offshore businesses. We enter 2013 with a solid backlog and strong financial resources that will allow us to capitalize on the opportunities that the industry we operate in offers.”