Moscow, December 30, 2009

EDC Announces acquisition of workover assets from LUKoil

Email Page

Eurasia Drilling Company Limited ("EDC" or the "Company" - LSE: EDCL) announced today that it has finalized an agreement to acquire 100% interest in OOO "Kogalym Well Workover Division" (KWWD) and OOO "Urai Well Workover Division" (UWWD) from OOO "LUKoil -Western Siberia", a subsidiary of Open Joint Stock Company "Oil Company LUKoil" (LUKoil).

KWWD and UWWD together employ over 2,500 staff to perform well workover , well reconditioning and well servicing operations, primarily for the TPP "Kogalymneftegaz" and TPP "Urayneftegaz" divisions of LUKoil -Western Siberia. Combined production assets include 150 workover rigs and 107 active crews supported from 7 operational facilities.

In addition to the sale and purchase agreement, LUKoil and EDC have signed a five-year Workover Framework Agreement covering pricing and work volumes pertaining to KWWD and UWWD activities.

Dr. Alexander Djaparidze, EDC's Chief Executive Officer, commented,
"One of the main strategic goals of the Company is to become a market leader in each of our core business lines. With the 87 workover rigs we previously owned our fleet will now be 237 rigs, transforming EDC into a major player in the growing Russian workover market. The new Workover Framework Agreement will provide assurance to LUKoil it will receive the quantity and quality of workover services it needs for the next five years in the areas of operations while giving EDC the confidence it needs to invest, prudently, in its new workover assets."

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

Some of the views expressed in this document may constitute "forward looking statements" that involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

30 December 2009

Next: 11 January 2010: EDC Announces New LUKoil Framework Agreement