MALKA schönes Fundament

Spudding of well in Yuzhno-Nazinskaya (N-232)

14:40 17.02.12

We have today spudded our well N-232 in Nizhnepaninsky license area. An important part of the drilling preparations has been to get all the necessary approvals in place. I would like to take the opportunity to thank our personnel who have done a very good job with this, which has enabled us to keep our schedule.  The planned depth of the well is 2800 m. For this, the Uralmash 3D- 76 drilling unit will be used. This machine allows for drilling wells up to 5000 m deep.  Our targets are Cretaceous, Jurassic, Weathering mantle and Palaeozoic deposits. We plan to do extensive testing during and after drilling and the estimated drilling time is 60-70 days, excluding testing. Spudding of our other two wells (one in Nizhnepaninsky and one in Muromsky-2) will begin shortly.

For further information, please contact:

Maks Grinfeld, CEO, phone: +46 8 5000 7810

Sven-Erik Zachrisson, Chairman, phone: +46 8 41 05 45 96

Certified Adviser First North:   Mangold Fondkommission AB

Reasonable caution notice:

The statement and assumptions made in the company's information regarding Petrogrand AB's ("Petrogrand") current plans, prognoses, strategies, concepts and other statements that are not historical facts are estimations or "forward looking statements" concerning Petrogrand's future activities. Such future estimations comprise but are not limited to statements that include words such as "may occur", "concerning", "plans", "expects", "estimates", "believes", "evaluates", "prognosticates" or similar expressions. Such expressions reflect the management of Petrogrand's expectations and assumptions made on the basis of information available at that time.