Moscow, April 15, 2010

Eurasia Drilling company successfully completes equity placing and announces size of special interim dividend

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Eurasia Drilling Company Limited ("EDC" or the "Company" - LSE: EDCL) today announces that its wholly owned subsidiary, EDC Incentive Plan Limited ("EIPL"), has successfully completed a placing of 11,972,178 global depositary receipts ("GDRs") with one GDR representing one ordinary share (the "Placing") at a price of USD 19.00 per GDR.

In connection with the Placing, EDC announces that it will pay a one-time special interim dividend ("Special Interim Dividend") of USD 179 million, or USD 1.22 per GDR, which is equivalent to the gain realized by EDC during its recently completed Share Repurchase Program. The record date for the Special Interim Dividend will be April 30, 2010 and the payment date will be May 19, 2010.

Additional proceeds from the Placing, once the Special Interim Dividend and the costs related to the Placing have been paid, will be used by EDC for general corporate purposes, including potential acquisitions in Russia and CIS, which meet the Company's investment criteria.

Goldman Sachs International and Troika Dialog acted as Joint Global Coordinators and Joint Bookrunners in connection with the Placing.

Alexander Djaparidze, CEO and main shareholder of EDC, commented:
"We are pleased to have successfully completed this placement which has enabled us to crystallise a significant gain realized on the GDRs we bought back at distressed levels during the crisis. This has created tangible value for our shareholders which they will receive through the special dividend. The completion of the placement, which has increased our public float by c.50%, should also provide for a significant increase in the trading liquidity of our GDRs"


EDC is the largest independent 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

April 15, 2010

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.

This announcement is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended, or any US state securities laws. EDC has not registered and does not intend to register any portion of the Placing in the United States, and EDC does not intend to make any public offering of securities in the United States.

This announcement and the Placing mentioned herein if made subsequently are only addressed to and directed at persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC) ("Qualified Investors"). In addition, in the United Kingdom this announcement is being distributed only to, and is directed only at, qualified investors who are (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order") or (ii) high net worth entities and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons").

This announcement must not be acted on or relied on (i) in the United Kingdom, by persons who are not relevant persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, by persons who are not Qualified Investors. Any investment activity to which this document relates is available only to (i) in the United Kingdom, relevant persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, Qualified Investors, and will be engaged in only with such persons. Other persons should not act or rely on this document or any of its contents.

Neither this announcement nor any copy of it may be taken or transmitted, directly or indirectly, into the United States, Australia, Canada or Japan or to a resident, national or citizen of the United States, Australia, Canada or Japan. This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefor. The Placing and the distribution of this announcement and other information in connection with the Placing in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

Neither the GDRs nor shares in EDC have been nor will they be registered under the applicable securities laws of Australia, Canada or Japan and, subject to certain exceptions, neither the GDRs nor shares in EDC may be offered or sold within Australia, Canada or Japan or to, or for the account or benefit of, citizens or residents of Australia, Canada or Japan except under circumstances which will result in the full compliance with the applicable laws and regulations promulgated by the relevant regulatory authorities in effect at the relevant time.

This document or information contained herein does not constitute an advertisement or offering of any securities in the Russian Federation within the meaning of Russian securities laws. The securities referred to herein have not been and will not be registered in Russia or admitted to public placement and/or public circulation in Russia. The securities referred to herein are not intended for "offering", "placement" or "circulation" in Russia (each as defined in Russian securities laws).

Goldman Sachs International and Troika Dialog are acting exclusively for EDC and no one else in connection with the Placing. They will not regard any other person (whether or not a recipient of this announcement) as their respective clients and will not be responsible to anyone other than EDC for providing the protections afforded to their respective clients nor for giving advice in relation to the Placing and, the contents of this announcement or any transaction or arrangement referred to herein.

Next: 15 April 2010: Eurasia Drilling company launches equity placing and announces a special interim dividend