EANS-News: C.A.T. oil AG continues to push its growth and diversification strategy

• Strategic objective to leverage efficient sidetrack drilling
platform and diversify into high-end conventional drilling services

• First conventional drilling tender awarded by Russneft
• Two new
sidetrack drilling rigs already in operations

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Company Information

Subtitle: • Strategic objective to leverage efficient sidetrack
drilling platform and diversify into high-end conventional drilling
services • First conventional drilling tender awarded by Russneft •
Two new sidetrack drilling rigs already in operations

Vienna, 24.03.2011 (euro adhoc) - C.A.T. oil AG (O2C, ISIN:
AT0000A00Y78), one of the leading providers of oil and gas field
services in Russia and Kazakhstan continues to push its growth and
diversification strategy. The 2011-12 investment program of EUR 150
million aims at expanding into the strong growing conventional
drilling business and at strengthening the existing sidetrack
drilling and fracturing businesses.

In this context the two new sidetrack drilling rigs, which had been
delivered in January, have successfully been deployed in late
February. They have accomplished their first wells in a timely manner
and have been operational with high utilization levels at Rosneft´s
Yugansk production area in West Siberia. Compared to the end of 2010,
the addition of these two rigs constitutes a 13% increase in the
company´s sidetrack drilling capacities and increases C.A.T. oil
overall sidetrack drilling capacities to a total of 17 rigs.

In addition, C.A.T. oil was awarded its first tender for conventional
drilling which will become the third core business in the second half
of 2011. The tender is worth EUR 2.25 million and was received from
C.A.T. oil´s customer Russneft.

Manfred Kastner, CEO of C.A.T. oil, said: "We are very pleased that
we have received our first conventional drilling tender by Russneft
at this early stage. The award confirms our quality track record and
represents a good starting point to expand into the strongly growing
new business segment." Mr. Kastner continued: "We are encouraged in
our primary strategic objective to leverage our efficient sidetrack
drilling platform laying the foundations for further growth and
diversification of our business. With respect of the implementation
of our capacity expansions, we are well on track."

As part of the expansion into conventional drilling operations,
C.A.T. oil has ordered nine new 1,100 HP North American conventional
drilling rigs, which will be delivered to Russia during the course of
the second half of 2011. C.A.T. oil expects that at least four out of
the nine ordered new conventional drilling rigs will be put into
operations before the end of the year.

"The award of our first conventional drilling tender enables the
immediate utilization of the first new rig upon its delivery to the
Russneft sites in July. We are confident to significantly capitalize
on our strong market position and customer relationships which will
enable us to receive additional orders during the year," Manfred
Kastner said.

C.A.T. oil will publish its results for Fiscal Year 2010 on April 28,
2011.

www.catoilag.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 to activate 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 2,427
people on 30 September 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:

FD
Carolin Amann
phone: +49(0) 69-92037132

Thomas Krammer
phone: +49 (0)69 92037-183

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