C.A.T. oil AG expands into geotechnical services

- Diversification of service portfolio, expansion into reservoir
engineering and seismic services - Strong organic growth and high
leverage with core business expected

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Vienna (euro adhoc) - July 03, 2007 - C.A.T. oil AG (O2C, ISIN:
AT0000A00Y78), one of the leading providers of oil and gasfield
services in Russia and Kazakhstan, today announced the formation of a
new subsidiary, CAToil-Geodata. C.A.T. oil AG hires a technical and
management team of 90 people from the Russian independent private
service company Geodata Consulting to diversify into new products and
to provide its customers with integrated reservoir engineering
solutions and exploration services.

Geodata Consulting was established in 1997 to provide high quality
geotechnical services to Russian and international oil and gas
companies and promptly became a visible player in the Russian
geoservice market. Its highly skilled technical team possesses strong
expertise in reservoir engineering, complex geologic and reservoir
modeling as well as seismic data processing, interpretation and
reservoir characterization. Geodata´s core specialty also includes
appraisal of oil and gas reserves and preparation of field
develop-ment plans for approval by Russian authorities.

Geodata specialists´ successful 10-year track record covers more than
120 consultancy projects in Russia and abroad. These include reserves
appraisal and development plans for high profile Russian projects
such as Kovykta, Sugmut, Kharyaga, Varyogan, Vanyogan and other
fields, with total reserves in excess of 4.5 bn bbl-oil and 100
tcf-gas, and more than 20 reservoir characterization and reservoir
modeling projects in Mexico, Argentina, Nigeria and India. Geodata
Consulting´s personnel has also developed proficiency in field
seismic data acquisition since 2003, when the company launched a
3-year 750 sq. km 3D onshore seismic project for Oil India in Assam.
Furthermore, it accomplished a number of successful 3D and 2D seismic
projects in India, Columbia and Russia, including West and East
Siberia.

Despite successful 10 years on the Russian geoservice market, the
move of Geodata Consulting´s management, which controlled the
company, has been triggered by small companies' limited access to
capital and growth opportunities, as well as the intensified sector
competition in the wake of the Russian oilfield service industry
consolidation. Employment with C.A.T. oil AG, a public oilfield
service company, fuels the confidence of Geodata Consulting´s
management and technical teams in sustainable realization of their
strong expertise and business potential amid challenging market
environment.

The business plan for the Group´s new company CAToil-Geodata
envisages the mobilization of 5 to 6 new 3D/2D seismic crews for the
2007/08 winter season in Russia and abroad with a view of expanding
the total number of seismic crews to 12 during the 2009/10 winter
season. CAToil-Geodata´s total capital expenditure and working
capital requirements for the years 2007 to 2010 stand at EUR 27.5
million to attain strong organic growth across seismic and reservoir
engineering businesses.

"We are excited about this unique opportunity to hire Geodata´s
highly visible geotechnical team and leverage its strong reservoir
engineering and seismic expertise with our client relations and
financial strength and welcome our new colleagues to the Group.
C.A.T. oil AG is fully committed to meeting customers´ growing needs
for integrated services through a product diversification and
exposure to early stages of oil and gas fields´ life cycle such as
explora-tion, appraisal and development planning. Separately, our
core fracturing and fast growing sidetrack drilling operations should
hugely benefit from the new team´s qualifications, which will be
shared by our core subsidiaries CATOBNEFT and CATKoneft for a
thorough selection of candidate wells," said Leonid Mirzoyan, the
Company´s Chief Corporate Finance Officer.

www.catoilag.com

Press contact:
A&B Financial Dynamics

Dr. Lutz Golsch Claudia Werth
phone: +49 (0)69 92037-110 phone: +49 (0)69 92037-114
Email: l.golsch@abfd.de Email: c.werth@abfd.de

About C.A.T. oil AG:

Austria-based C.A.T. oil AG (O2C, ISIN: AT0000A00Y78) is one of the
leading provid-ers of oil- and gasfield services in Russia and
Kazakhstan. C.A.T. oil´s core business is hydraulic fracturing, a
process which helps to open up oil- and gas-bearing rock formations
in order to increase or even enable oil and gas production. The
C.A.T. oil crews use state-of-the-art methods and technologies to
generate high pressure in the oil or gas reservoirs concerned. This
pressure causes cracks to appear in the rock through which oil or gas
can be produced in larger quantities from the production well, and
hence efficiently boosts extraction, particularly in the case of
deposits that are difficult to develop or low-output wells. In
addition, hydraulic fracturing can be used to revitalize wells that
have previously been idle. The Company has its headquarters Vienna
and employed 2,657 people at the end of the first quarter 2007, most
of whom are based in Russia and Kazakhstan. Customers include leading
oil and gas producers such as Gazprom, KazMunaiGaz, LUKOIL, Rosneft,
and TNK-BP. C.A.T. oil has been listed in the Prime Standard of the
Frankfurt Stock Exchange since May 4, 2006, and has been a member of
the SDax since September 18, 2006.

end of announcement euro adhoc 03.07.2007 18:19:44
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ots Originaltext: C.A.T. oil AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Claudia Werth
Telefon: +49 (0)69 920 37-199
E-Mail: c.werth@abfd.de

Branche: Oil & Gas - Upstream activities
ISIN: AT0000A00Y78
WKN: A0IKWU
Index: Classic All Share, Prime All Share, SDAX
Börsen: Börse Frankfurt / official dealing