EANS-Adhoc: C.A.T. oil AG / C.A.T. oil approves the 2011-12 investment program of EUR 150 million for further growth and diversification

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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New Products/Investment program

08.11.2010

Vienna, 8 November 2010 - C.A.T. oil AG (O2C, ISIN: AT0000A00Y78), an
independent oil and gas field service provider in Russia and
Kazakhstan, today announced that the Company´s Supervisory Board has
approved a major investment program which aims at further growth and
diversification of the Company´s business. C.A.T. oil´s 2011-12
capital expenditure program will total EUR 150 million and consist of
two parts: The major portion of the investment will be used to build
up a third core business of high-class onshore drilling services and
a smaller portion of the investment will be diverted to reinforce the
Company´s existing businesses of sidetrack drilling and hydraulic
fracturing. Given the long lead time to supply of the new operating
capacity, the investments are expected to make material contribution
to the Company´s earnings from 2012 onwards.

The bulk of investments in new onshore drilling business will be used
to purchase nine state-of-the-art North American mobile drilling rigs
in H2 2011. Approximately one third of the new drilling capacity will
be put into operations in H2 2011 and the rest at the beginning of
2012. In addition, the investment program foresees the expansion of
the sidetrack drilling capacity by two rigs to bring the Company´s
total number of sidetrack drilling rigs to 17 in Q1 2011 from 15 rigs
at the moment.

C.A.T. oil plans to capitalize upon its existing sidetracking
capabilities and infrastructure as well as its proven track record of
organic growth and diversification to penetrate safely a premium
segment of the Russian high growth drilling market.

The Company will maintain its conservative financial policy and a
strong equity base. The investments will be primarily financed from
the Company´s operating cash flow as well as long-term debt. For this
reason, the Company has upgraded its committed but unutilized credit
line with EUROBANK EFG to EUR 100 million from EUR 50 million and
extended it until October 2015.

C.A.T. oil AG
Kaerntner Ring 11-13
A-1010 Vienna
Austria

Ticker symbol: O2C
ISIN: AT0000A00Y78
Common Code: 025162498
Listing: Official Market / Prime Standard, Frankfurt Stock Exchange
www.catoilag.com

End of Adhoc Release

Additional information:

Manfred Kastner, CEO of C.A.T. oil, commented: "Over the past four
years we have successfully diversified into the high-margin sidetrack
drilling business which has become our number one growth driver. The
expansion into high-end onshore drilling represents another strategic
step along our successful path of profitability and growth. With an
estimated growth rate in excess of 10% per annum, the Russian onshore
drilling market offers us attractive opportunities. Based on the
improved market conditions we feel that the time is right to take
additional steps to prudently diversify our business. We will thus
leverage our profound experience and our existing workforce to set up
conventional drilling as a third service offering of our Group. This
will allow us to realise additional growth as we are able to offer
attractive additional services to new clients and to cross-sell these
to existing accounts."

Following the implementation of the investment program, C.A.T. oil
will be a service provider which will offer both, brownfield services
on existing wells, as well as greenfield services on completely
unexploited oil sources. The addition of high-class drilling services
to the service portfolio will contribute to further diversify and
round the Company´s revenue and earnings mix.

C.A.T. oil´s Supervisory Board has also approved the Company´s
dividend policy. The dividend policy foresees the distribution of at
least 20% of the Company´s consolidated net profit in a form of cash
dividend to shareholders over the long-term earnings cycle. The
dividend payout is dependent upon the Company´s earnings and cash
flow constraints, investment and financing requirements and the
environment in the oil field services market. It is intended that the
policy leaves the Company the necessary flexibility to maintain
sufficient liquidity and an adequate capital structure. The full
dividend policy will be available on the Company´s website.

www.catoilag.com

Press contact:
Financial Dynamics GmbH

Carolin Amann Lucie Maucher
Tel.: +49 (0)69 92037-132 Tel.: +49 (0)69 92037-183
Email: carolin.amann@fd.com Email: lucie.maucher@fd.com

About C.A.T. oil AG:

C.A.T. oil AG is one of the leading providers of oil and gas field
services in Russia and Kazakhstan and is listed on the Frankfurt
Stock Exchange (SDAX). C.A.T. oil offers a wide spectrum of services
to increase the lifecycle of an oil field or to make unexploited oil
fields accessible. The Company´s growth is driven by the following
factors: Existing oil fields need to be stimulated due to shrinking
oil and gas resources in order to optimize capacities.
Simultaneously, idle wells are reactivated or made accessible through
new methods in order to deploy wells to their maximum. Additionally
C.A.T. oil will establish conventional drilling as third core service
which allows activating completely unexploited oil and gas sources.

Since its foundation in 1991 in Celle, Germany, C.A.T. oil has built
up a leading hydraulic fracturing services business in Russia and
Kazakhstan. Following its IPO in 2006 the Company has invested more
than EUR 200 million in additional services and capacities: Sidetrack
drilling has become the Company´s second core business. In November
2010, the Company introduced a comprehensive investment program with
a volume of EUR 150 million which will mainly be used to set up
conventional drilling as part of the Company´s service portfolio.
Furthermore, C.A.T. oil offers coiled tubing, formation evaluation
services, well work-over, cementing and seismic services. Due to the
recent expansion investments C.A.T. oil´s fleets and rigs are
state-of-the-art and therefore allow for time-efficient and effective
deployment. C.A.T. oil´s customer base includes the leading Russian
and Kazakh oil and gas producers amongst them Gazprom, KazMunaiGaz,
LUKOIL, Rosneft and TNK-BP. C.A.T. oil has a long-standing
relationship with these customers and has been a reliable service
provider since its market entrance in the early nineties.

The Company has its headquarters in Vienna and employed an average of
2,455 people on 30 June 2010, most of whom are based in Russia and
Kazakhstan.

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

Further inquiry note:

Lucie Maucher

Tel.: +49 (69) 920 37-183

E-Mail: lucie.maucher@fd.com

Branche: Oil & Gas - Upstream activities
ISIN: AT0000A00Y78
WKN: A0JKWU
Index: SDAX, Classic All Share, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard