Moscow, November 17, 2009

Eurasia Drilling company limited withdraws from equity placing

Email Page

NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM, THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA, OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

FOR IMMEDIATE RELEASE NOVEMBER 17, 2009

Eurasia Drilling company limited withdraws from equity placing

Eurasia Drilling Company Limited ("EDC" or the "Company" - LSE: EDCL) today announces that it has withdrawn from the placing (the "Placing") announced on 16 November of existing global depositary receipts ("GDRs") held by EDC Incentive Plan Limited ("EIPL").

The Company's Chief Financial Officer, W. Richard Anderson, indicated:
"Despite the fact that there was more than adequate demand for the GDRs on offer, the Company decided not to proceed with the transaction because we felt the offered price did not reflect the underlying value of the Company's business and did not properly give credit to the contemplated special dividend. The Company has no further plans to dispose of its treasury shares at this time. We expect our business will continue to grow and provide excellent returns to our shareholders."

Those of the Company's minority shareholders who had retained a right to participate in the Placing (the "Selling Shareholders") have also determined not to take up that right.

As a result, the Board no longer intends to pay the one-time Special Interim Dividend originally proposed in recognition of the gain on the GDRs repurchased by EIPL as part of EDC's Share Repurchase Program.

Following their withdrawal from the Placing, EDC, EIPL, the Selling Shareholders and one of the Company's largest shareholders, Mr Alexander Djaparidze, will no longer be subject to the lock-up restrictions previously proposed in connection with the Placing.

***

EDC is the largest provider of onshore drilling services in Russia, as measured by the number of meters drilled, providing onshore integrated well construction services and workover services. In addition, the Company provides offshore drilling services in the Caspian Sea. The Company offers its onshore integrated well construction services and workover services to local and international oil and gas companies primarily in Russia and its offshore drilling services to Russian and international oil and gas companies in the Russian, Kazakh and Turkmen sectors of the Caspian Sea. The Company is traded on the London Stock Exchange under the symbol "EDCL".

***

For further information, please contact:

Kim L. Kruschwitz, VP Investor Relations
+44 (0) 207 717 9707
investors.relations@eurasiadrilling.com

November 17, 2009

Forward-Looking Statements:

Some of the statements in this announcement are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of EDC or its directors with respect to various matters. When used in this document, the words 'expects,' 'believes,' 'anticipates,' 'plans,' 'may,' 'will,' 'should' and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcomes to differ materially from those suggested by any such statements.

Except as required by applicable law or regulation, the forward-looking statements in this announcement are made as of the date hereof, and EDC expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement or incorporated by reference into this announcement to reflect any change in EDC's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Neither the content of EDC's website nor any website accessible by hyperlinks on EDC's website is incorporated in, or forms part of, this announcement.

Next: 30 November 2009: Management Share Dealing Notification