Moscow, January 21, 2010

EDC's 2010 Outlook

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Eurasia Drilling Company Limited ("EDC" or the "Company" - LSE: EDCL) today released its activity Outlook for calendar year 2010.

Onshore Drilling Services:

  • The Company's current drilling volume forecast is just over 3.9 million meters for 2010, which represents a substantial increase over the 2009 total of 3,752,612 meters.
  • Client mix in 2010 is expected to be comparable to 2009. Despite some decrease in Western Siberian activity, Lukoil volumes are expected to increase slightly in 2010 v. 2009, representing approximately 62% of EDC's total drilling volume (in 2009 Lukoil accounted for 63% of total EDC drilling volume). Drilling volumes with the Company's other major clients, Gazpromneft and Rosneft, are also expected to increase in aggregate, accounting for in excess of 35% of total EDC drilling volume.
  • EDC continues to pursue opportunities with new and existing clients for additional 2010 work volumes. For the full year, total drilling volume is expected to be at least 5% above 2009 levels.
  • Pricing in ruble terms for the year should be up slightly from 2009.

Offshore Drilling Services:

  • The ASTRA jack-up drilling rig, which operates in the Russian, Kazakh and Turkmen sectors of the Caspian Sea, is currently committed for a full 12 month program in 2010, versus 9 months of activity in 2009 (the rig was idle in Q1-09). Jack-up day rates have been robust in the Caspian market, increasing in both 2009 and 2010.
  • The Company's Caspian Sea activity has recently expanded into platform drilling. Operations on Lukoil's Yu. Korchagin field ice-resistant platform, where EDC is the General Contractor for drilling services, commenced in November, 2009, and are expected to continue throughout the year.
  • Based on anticipation of a full year of operations on these two projects, the organic growth in revenues for the Company's offshore drilling operations should be substantial in 2010.

Recent Acquisitions:

  • On December 21, 2009, EDC acquired OOO Tekhgeoservice (TGS), a Russian provider of wellsite directional drilling and telemetry services. TGS operations have been organized into a new directional drilling service line within the Company's wholly owned subsidiary, OOO NTS (other NTS service lines include provision of well cementing services and drilling fluids engineering). NTS is expected to generate incremental margin for the Company as formerly subcontracted services are brought in-house. In addition, EDC will benefit from a modest amount of revenue billed to third parties.
  • On December 30, 2009, EDC announced the acquisition of OOO "Kogalym Well Workover Division" (KWWD) and OOO "Urai Well Workover Division" (UWWD) from OOO "LUKoil -Western Siberia". KWWD and UWWD will add materially to the Company's revenue in 2010. The Company will be implementing a program to improve the efficiency of these operations, the results of which should begin to improve their financial performance by year-end.
  • The Company continues to actively review other acquisition opportunities to improve its margins and diversify its revenue base.

Dr. Alexander Djaparidze, EDC's Chief Executive Officer, commented,

"We expect 2010 to be a year of growth for EDC on all fronts. We believe our revenues will increase in each of our business segments and that our financial performance will likewise be strong due to our focus on operational efficiency and cost control. Management is bidding on a number of exciting projects both domestically and in foreign jurisdictions which we hope to announce in the coming months as they are finalized."

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

January 21, 2010

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.

Next: 26 January 2010: EDC Announces Management Additions