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CONTACTS CONTACTS Address and telephone Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address Address : : Zasyadko ave, Donetsk, Ukraine Zasyadko ave, Donetsk, Ukraine 83054 83054 Telephone Telephone : +38 (062) 201-63-89 : +38 (062) 201-63-89 Fax Fax : +38 (062) 306-30-50 : +38 (062) 306-30-50 E-mail: E-mail: [email protected] Web site : Web site : www.zasyadko www.zasyadko. net net Contacts Contacts : : Borys Bokiy – Deputy Director General Borys Bokiy – Deputy Director General Tel. Tel. : +38 (062) 201-63-37, 306-32-26 : +38 (062) 201-63-37, 306-32-26 Mobile Mobile : +38 (050)368-61-98 : +38 (050)368-61-98 Fax Fax : +38 (062) 3 : +38 (062) 3 45 45- 18 18- 43 43 E-mail: E-mail: [email protected] , , [email protected] Dmytro Gunia Dmytro Gunia Deputy Director of the Mine Deputy Director of the Mine Tel. Tel. : +38 : +38 ( 095 095) 530 530- 74 74- 40, +38 40, +38 ( 067 067) 628 628- 10 10- 75 75 Fax Fax : +38 : +38 ( 062 062) 201 201- 63 63- 97 97 E-mail: [email protected] E-mail: [email protected]

CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

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Page 1: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

CONTACTSCONTACTSAddress and telephoneAddress and telephone

Public Joint Stock Company “Shakhta imeni O.F. Zasyadka”Public Joint Stock Company “Shakhta imeni O.F. Zasyadka”

AddressAddress: : Zasyadko ave, Donetsk, Ukraine Zasyadko ave, Donetsk, Ukraine 8305483054

TelephoneTelephone: +38 (062) 201-63-89: +38 (062) 201-63-89

FaxFax: +38 (062) 306-30-50: +38 (062) 306-30-50

E-mail: E-mail: [email protected]

Web site : Web site : www.zasyadkowww.zasyadko..netnet

ContactsContacts: :

Borys Bokiy – Deputy Director General Borys Bokiy – Deputy Director General Tel.Tel.: +38 (062) 201-63-37, 306-32-26: +38 (062) 201-63-37, 306-32-26MobileMobile: +38 (050)368-61-98: +38 (050)368-61-98FaxFax: +38 (062) 3: +38 (062) 34545--1818--4343E-mail: E-mail: [email protected], , [email protected]

Dmytro GuniaDmytro Gunia – – Deputy Director of the Mine Deputy Director of the Mine Tel.Tel.: +38 : +38 ((095095)) 530 530--7474--40, +38 40, +38 ((067067)) 628 628--1010--7575FaxFax: +38 : +38 ((062062)) 201 201--6363--9797E-mail: [email protected]: [email protected]

Page 2: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

Total number of employees at the mine is 5991 people

Total number of employees at the service is 182 people

Page 3: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)
Page 4: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

General Information on Coal Mine ZasyadkoGeneral Information on Coal Mine Zasyadko1.1. Brought into serviceBrought into service December 1958December 1958

2.2. Productive capacity Productive capacity 1500 1500 thousand tonsthousand tons

3.3. Surface vertical shafts opened at the mine field Surface vertical shafts opened at the mine field 9 9

4.4. Shafts put down in Shafts put down in 2001-20052001-2005 33

5.5. Shaft DepthShaft Depth 540-1280 540-1280 mm

6.6. Coal commercial reserves as ofCoal commercial reserves as of 01.01.13 01.01.13 11445,5,5 5 mln tonsmln tons

7.7. Methane reserves as of Methane reserves as of 01.01.1301.01.13 18,18,55 billion mbillion m33

8.8. Coal seams tapped Coal seams tapped 44

   M3M3 1,2-1,6 1,2-1,6 mm

   L4L4 0,7-1,1 0,7-1,1 mm

   L1L1 1,5-1,8 1,5-1,8 mm

   k8k8 0,8-1,0 0,8-1,0 mm

99 Coal seams on production Coal seams on production 22

   M3M3 1,2-1,8 1,2-1,8 mm

   L4L4 0,6-1,2 0,6-1,2 mm

10.10. Coal seams prone to sudden outbursts of coal and gas Coal seams prone to sudden outbursts of coal and gas mm33, l, l44, l, l11, k, k88

11.11. Seams prone to spontaneous-combustionSeams prone to spontaneous-combustion mm33, l, l11

12.12. Absolute gas content Absolute gas content 200 200 mm33//minmin

13.13. Relative gas contentRelative gas content 50 50 mm33//tt

14.14. Mining depth Mining depth 1350-1400 1350-1400 mm

15.15. Mine inflowMine inflow 480 480 mm33//hourhour

16.16. Mine roadway length Mine roadway length 110 110 kmkm

17.17. Air amount fed to the mineAir amount fed to the mine 4848thousandthousand mm33//minmin

Page 5: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

SS “Geological Survey and Surface Degassing Service”SS “Geological Survey and Surface Degassing Service”Map of UkraineMap of Ukraine

Page 6: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

SSSS “Geological Survey and Surface “Geological Survey and Surface Degassing Service”Degassing Service”

ObjectiveObjective

To create a new high profitable international oil and gas producing company aimed at To create a new high profitable international oil and gas producing company aimed at the international marketthe international market..

TasksTasks

1.1. To assure realization of geological exploration works using advanced exploration techniques. To assure realization of geological exploration works using advanced exploration techniques.

2.2. To assure effective drilling and well completionTo assure effective drilling and well completion..

3.3. To assure qualitative field development (rich in conventional and unconventional hydrocarbon To assure qualitative field development (rich in conventional and unconventional hydrocarbon reserves).reserves).

4.4. To assure work performance in accordance with international labor protection, accident To assure work performance in accordance with international labor protection, accident prevention and environmental protection requirements based on principles of international prevention and environmental protection requirements based on principles of international management. management.

5.5.To assure safe and successful field exploitation.To assure safe and successful field exploitation.

6.6. To acquire updated programs and on their base to assure formation of geophysical and To acquire updated programs and on their base to assure formation of geophysical and geological database. geological database.

7.7. To provide company’s personnel with advanced equipment and materialsTo provide company’s personnel with advanced equipment and materials..

Page 7: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

1.1. Hire qualified engineering personnel from UkraineHire qualified engineering personnel from Ukraine..

2.2. Hire foreign specialists to perform certain functions and train Hire foreign specialists to perform certain functions and train

Ukrainian specialists. Ukrainian specialists.

3.3. Provide training of personnel in Ukraine and abroad. For instance, Provide training of personnel in Ukraine and abroad. For instance,

training of engineers in directional drilling (Canada) and hydraulic training of engineers in directional drilling (Canada) and hydraulic

fracture performance. fracture performance.

4.4. Guarantee employees the above average salary in Ukraine. Guarantee employees the above average salary in Ukraine.

Human Resources PolicyHuman Resources Policy

Page 8: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

GeologyGeology: : Unconventional ResourcesUnconventional ResourcesGob Degasification Gob Degasification

Drilled Drilled – 58 wells – 58 wells

Being DrilledBeing Drilled – 2 wells – 2 wells

In UseIn Use - 6 wells - 6 wells

Well Drilling Time Well Drilling Time – 8 months – 8 months

Well Capacity Well Capacity – approx 1-3 mln m– approx 1-3 mln m33/year/year

Need to be drilledNeed to be drilled – 76 wells – 76 wells

Surface Pipeline Ø325 mSurface Pipeline Ø325 m – 16 thous m – 16 thous m

Pipeline need to be laidPipeline need to be laid – 4 thous. m – 4 thous. m

Page 9: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

Drilling Rig ZIF 1200-МА

Page 10: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

BY 15МDrilling Rig

Water Drillingfor process purposes

Page 11: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

Concentration of methane recovered and being usedConcentration of methane recovered and being used

Name Concentration of Captured Methane

Efficiency of zone degassing,

% of gross share

Degassing from the surface: а) preliminary b) gob

90-98%50 – 98%

5-30%5-10%

Current degassing by means of underground wells

25-60% 30-50%

UndergroundGob Degassing

8-30% 30-45%

Efficiency of Complex Degassing is Efficiency of Complex Degassing is 80-94%.80-94%.

Page 12: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

•• Heat Utilization: depending on seasonal loadsHeat Utilization: depending on seasonal loadsHeat ConsumptionHeat Consumption::•• Summer Season: adsorption facilities for reduction of temperature of Summer Season: adsorption facilities for reduction of temperature of the air to be fed into minethe air to be fed into mine..•• Winter Season: heating of the air Winter Season: heating of the air to be fed into mine, and heat to be fed into mine, and heat supply to sites of the minesupply to sites of the mine..

Utilization of Methane for Heat GenerationUtilization of Methane for Heat Generation

Page 13: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

Utilization of Methane for Electrical Power Utilization of Methane for Electrical Power GenerationGeneration

GE Jenbacher Gas Reciprocating Units are most efficient when utilizing mine gas-air GE Jenbacher Gas Reciprocating Units are most efficient when utilizing mine gas-air mixture mixture becausebecause::--They do not require compressors to feed gas with excessive inlet pressure -100 mbarThey do not require compressors to feed gas with excessive inlet pressure -100 mbar;;- СН- СН44 concentration is concentration is > 25%;> 25%;

-- They are properly sized and easy to transport compared with the same type of engines They are properly sized and easy to transport compared with the same type of engines by other manufacturersby other manufacturers;;-- High Performance High Performance > 80%. > 80%.-- Rated Power Capacity - Rated Power Capacity - 1 1 setset- 36, 2 М- 36, 2 МWW, 2, 2nd set nd set - 37, 4 - 37, 4 ММW.W.--Total Power Capacity Total Power Capacity -73,6 М-73,6 МWW

Page 14: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

Gas recovered from the surface Gas recovered from the surface wells is utilized as fuel for motor wells is utilized as fuel for motor vehicles without extra treatment. vehicles without extra treatment.

Utilization of Methane for Utilization of Methane for Fuelling Motor VehiclesFuelling Motor Vehicles

Page 15: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

Methane Utilization Project in Figures, March 1st, Methane Utilization Project in Figures, March 1st, 20120133

  Fuel Gas Ignition GasTotal Methane Consumption,

CHP

Methane Consumption

, AGFCP

Methane Consumption, Project Total

Generated Electrical

Power, CHP, Total

Generated CHP

(excluding CHP own demand)

Heat Generated

Heat Supplied

Offset, tCO2e

Year m3 m3 MVchp m3,СН4

m3,СН4 m3,СН4

MWhGENchp

MWh Гкал Гкал

ВЕу-РЕу tCO2e

2004       2 220 091 2 220 091         34 328

2005       2 194 690 2 194 690         33 936

2006 23 484 275 1 136 860 24 621 135 1 591 156 26 212 291 94 313 90 555 8 120 8 120 428 311

2007 55 575 405 2 083 767 57 659 172 2 004 468 59 663 640 200 586 193 922 33 337 33 337 963 940

2008 36 830 301 1 416 927 38 247 229 2 060 612 40 307 841 131 893 127 012 59 112 28 139 650 851

2009 36 569 373 1 487 604 38 056 977 1 793 378 39 850 355 132 620 127 899 56 508 36 016 647 111

2010 48 638 843 2 072 738 50 711 582 1 859 204 52570787 175 931 169 650 74 581 43 307 852 158

2011 34197335 1360833 35558168 1437605 36995773 122046 117514 53709 28236 620534

2012 18 458 066.31 654 536.79 19 112 603.10 1 205 173.05 20 317 776.15 65 666.77 62 812.294 31 836.09 17 300.72 340 402.52

2013 till March 1

2 158 431.89 66 307.14 2 224 739.03 142 729.89 2 367 468.92 7 814.88 7 481.87 3 584.50 2 443.69 39 960.38

TOTAL253 753 599.77 10 213 266.18 263 966 865.95 16 366 377.89 280 333 243.84 923 057.10 889 364.48 317 203.81 194 456.22 4 571 572.29

Page 16: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

Drilling program on deep wells for preliminary methane drainage was developed based on geological structural Drilling program on deep wells for preliminary methane drainage was developed based on geological structural

imaging and a complex of geophysical studies.imaging and a complex of geophysical studies. Development and execution of the project are realized by the superior home and foreign specialists (Geo-technical Development and execution of the project are realized by the superior home and foreign specialists (Geo-technical

Mechanics Institute of National Academy of Science of UkraineMechanics Institute of National Academy of Science of Ukraine, , SGESGE « «UkrgeophysicsUkrgeophysics», », CJSCCJSC « «UkrpromgeophysicsUkrpromgeophysics», », CJSCCJSC « «Research Research

and Development Bureau and Development Bureau БИ», «БИ», «HalliburtonHalliburton»» and and « «SchlumbergerSchlumberger»)»)..

The project provides for the drilling of 5 wells 3000 – 3500 m deep. The project provides for the drilling of 5 wells 3000 – 3500 m deep.

Drilling objective – vertical exploration of deep layers, of the possibilities of gas intake into active mine roadways from deep Drilling objective – vertical exploration of deep layers, of the possibilities of gas intake into active mine roadways from deep

depths, of gas migration paths, of the possibility of preliminary methane drainagedepths, of gas migration paths, of the possibility of preliminary methane drainage. .

ZG-1 well was drilled to the depth of ZG-1 well was drilled to the depth of 3463 3463 m and cased with Øm and cased with Ø 178 178 mm casingmm casing. . In course of drilling 14 drill stem tests were In course of drilling 14 drill stem tests were

carried out, and more than 400 m of core was picked and tested in laboratories.carried out, and more than 400 m of core was picked and tested in laboratories.

There were selected 12 gas-bearing horizons at the depth from 1There were selected 12 gas-bearing horizons at the depth from 1800 800 m to m to 3460 3460 mm. . Currently the well is being developed. Currently the well is being developed.

ZG -2 was drilled to the depth of 2900 m, directional well completion followed by the hydraulic fracture is planned. ZG -2 was drilled to the depth of 2900 m, directional well completion followed by the hydraulic fracture is planned.

Page 17: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

Unconvetional gas at Zasyadko Coal mine is extracted by means ofUnconvetional gas at Zasyadko Coal mine is extracted by means of::• Drilling vertical wellsDrilling vertical wells – vertical frac - – vertical frac - in process of fracturing in process of fracturing • Drilling of horizontal wells – plans for future Drilling of horizontal wells – plans for future • Using of Using of Packer Plus Packer Plus multistage system of well completion – for fracturing in horizontal multistage system of well completion – for fracturing in horizontal

wells –plans for futurewells –plans for future• Supervising of wells drilling offshore of the Black Sea and in Poltava Region using Drill Tek Supervising of wells drilling offshore of the Black Sea and in Poltava Region using Drill Tek

equipmentequipment

Unconventional reservoirs development PJSC «Shakhta im. O.F.Zasyadka»

Page 18: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

1.1. NOV Drilling Rigs NOV Drilling Rigs с/с/w Well w Well Controll EquipmentControll Equipment

К-160 К-160 –– 2 2 units units

К-22К-2255 –– 2 2 unitsunits

2. 2. Geophysical Team Geophysical Team

а) а) Mud logging Mud logging –– 22 unitsunits

bb) ) LoggingLogging

3. 3. Cementing teamCementing team

ACSACS-700 -700 Cementing unit Cementing unit –– 11 pcpc

4. 4. Directional Drilling Team Directional Drilling Team – – 5 5 peoplepeople

3 3 sets of equipment sets of equipment (7 (7 pcspcs))

Drill motorsDrill motors –– 14 14 pcspcs

5. 5. Machinery and repair plant Machinery and repair plant equipped with NOV tool equipped with NOV tool for drill motors and jars for drill motors and jars

maintenancemaintenance

6. 6. Geological team Geological team

Conventional Resources Conventional Resources

Page 19: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

DRILLING RIG MODELDRILLING RIG MODEL K-160K-160 K-225K-225

Rated depthRated depth ( (mm)) 3 8003 800 4 4 500500

Maximum hook loadMaximum hook load,, kN kN ((thousand lbsthousand lbs)) 160160 225225

Number of LinesNumber of Lines 88 99

Drill line sizeDrill line size, , inchinch 2828 2828

DrawworksDrawworks TypeType К-К-775050 DD DD К-К-775050 DD DD

Main BrakeMain Brake DrumDrum

Additional BrakeAdditional Brake Hydraulic Hydraulic

Crown block CapacityCrown block Capacity metricmetric ( (tonton)) 158,8158,8 250250

Rotary TableRotary Table

Rotary table DiameterRotary table Diametermmmm 690690 690690

GearGear 55 55

MastMast TypeType Telescope Telescope TelescopeTelescope

Drill PumpDrill Pump

QuantityQuantity x x TypeType 1 х 8-Р-80; 1 х1 х 8-Р-80; 1 х F-1000 F-1000 22 x F-1000 x F-1000

Drive TypeDrive Type DieselDiesel

Engine Capacity 354 354 hphp 354 354 hphp

Page 20: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)
Page 21: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)
Page 22: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

22

The main advantage of “OilWell VARCO” The main advantage of “OilWell VARCO” К-160 К-160 andand К-225 К-225 Mobile Mobile Drilling Rigs is significant reduction in mounting, transportation and Drilling Rigs is significant reduction in mounting, transportation and dismounting time of the drilling equipment. dismounting time of the drilling equipment.

Availability of up-to-date equipment, tractor-mounted and specialty Availability of up-to-date equipment, tractor-mounted and specialty vehicles, maintenance area, experienced and high-qualified personnelvehicles, maintenance area, experienced and high-qualified personnel allows to reduce time for rig up and rig down, as well as to carry out allows to reduce time for rig up and rig down, as well as to carry out various flow processes without subcontracting. various flow processes without subcontracting.

Page 23: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

23

While drilling services on monitoring of geological and geophysical While drilling services on monitoring of geological and geophysical operations can be rendered by means of operations can be rendered by means of АТМ-121АТМ-121 geotechnical survey geotechnical survey station (2 pcs) Russia, St. Petersburg.station (2 pcs) Russia, St. Petersburg.

Page 24: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

GeologyGeology: : Conventional ResourcesConventional Resources 1.1. Volodarskaya FieldVolodarskaya Field

Special license for the right to use subsurface mineral resources #4069 dated Special license for the right to use subsurface mineral resources #4069 dated 21.12.2011 for the term of 20 years.21.12.2011 for the term of 20 years.

Brief Description Completed Works

1. Location: Dergachevskiy and Bogodukhovskiy districts of Kharkiv region.

2. Field area: 31,76 km2. 3. Initial assessment of resources: 2,6

billion m3 of gas. 4. Prospective horizons depth: 1000-

3500 m. 5. Neighbouring fields: Nedelnoye and

Skvortsovskoye.

1. Exploratory Drilling Program was developed, 9 wells are planned to be drilled.

2. Well #1 was drilled to the depth of 2870 m.

3. Well flow rate makes up approx. 85,4 M м3/day Р-189 ATM.

4. Initial estimated reserves - 0,9 billion category С2 as reported by VSP.

5. The 2nd well is being drilled l-210 m. 6. Seismic and electric exploration is

being performed.

Page 25: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

2. Zakutnyaya Field

Special license for the right to use subsurface mineral resources #4070 dated Special license for the right to use subsurface mineral resources #4070 dated 21.12.2011 for the term of 20 years.21.12.2011 for the term of 20 years.

Brief Description Completed Works

1. Location: Stanichno-Luganskiy district of Kharkiv region.

2. Field area: 65,4 km2. 3. Initial assessment of resources:

0,4 billion m3 of gas. 4. Perspective horizons depth: up to

3500 m. 5. Neighbouring fields: Migrinskoye,

Lvovskoye, Olhovskoye and Krutovskoye (Russian Rederation).

1. Seismic data over 53.4 km was acquired. Seismic lines of previous years, that is 76 km, were re-interpreted.

2. Exploratory Drilling Program was developed, 9 wells are planned to be drilled.

3. The first exploratory well drilled-in, gas emission was obtained.

4. Well testing is being performed.

Page 26: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

3.3.Severolobachevskaya FieldSeverolobachevskaya Field

Special license for the right to use subsurface mineral resources #4074 dated Special license for the right to use subsurface mineral resources #4074 dated 21.12.2011 for the term of 20 years.21.12.2011 for the term of 20 years.

Brief Description Completed Works

1. Location: Slavyano-serbskiy and Stanichno-Luganskiy districts of Lugansk region.

2. Field area: 79,9 km2. 3. Initial assessment of resources: 1,0

billion m3 of gas. 4. Perspective horizons depth: up to

3500 m. 5. Neighbouring fields:

Veselogorovskoye, Vergunskoye, Zapadnovergunskoye,Lobachevskoye, Rossypnyanskoye, Tryohyzbenskoye.

1. Seismic data over 66.5 km was acquired. Seismic lines of previous years, that is 207 km, were re-interpreted.

2. 6 perspective intervals were selected in the course of seismic data acquisition.

3. It is planned to start drilling the well on 01.05.2013 - 2500 m.

Page 27: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

4.4. Zapadnoderkulskaya FieldZapadnoderkulskaya Field

Special license for the right to use subsurface mineral resources #4071 dated Special license for the right to use subsurface mineral resources #4071 dated 21.12.2011 for the term of 20 years.21.12.2011 for the term of 20 years.

Brief Description Completed Works

1. Location: Stanichno-Luganskiy, Novoajdarskiy and Belovodskiy districts of Lugansk region.

2. Field area: 252,79 km2. 3. Initial assessment of resources: 0,5

billion m3 of gas. 4. Perspective horizons depth: up to

2600 m. 5. Neighbouring - fields:

Lubashevskoye, Migrinskoye, Olhovskoye.

1. Seismic data over 153 km was acquired. Seismic lines of previous years, that is 71 km, were re-interpreted.

2. 10 perspective intervals were selected in the course of seismic data acquisition.

3. Reservoir delineation and refining works are in process

Page 28: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

5.5. Yampolskaya Field Yampolskaya Field

Special license for the right to use subsurface mineral resources #4077 dated Special license for the right to use subsurface mineral resources #4077 dated 21.12.2011 for the term of 20 years.21.12.2011 for the term of 20 years.

Brief Description Completed Works

1. Location: Kremenetskiy district of Lugansk region.

2. Field area: 70,64 km2. 3. Initial assessment of resources:

0,35 billion m3 of gas. 4. Perspective horizons depth: 800-

4000 m. 5. Neighbouring - fields:

Yuzhnomakeevskaye, Krasnopopovskoye PGH, Drobyshevskoye.

1. Seismic data over 48 km was acquired. Seismic lines of previous years, that is 204 km, were re-interpreted.

2. 2 perspective intervals were selected and prepared for drilling in the course of seismic data acquisition.

3. Seismic passport for the field was developed.

4. Seismic data is being re-interpreted.

Page 29: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

6.6. Veselenovskaya FieldVeselenovskaya Field

Brief Description Completed Works

1. Location: Stanichno-Luganskiy district of Lugansk region.

2. Field area: 63,3 km2. 3. Initial assessment of resources: 0,3

billion m3 of gas. 4. Perspective horizons depth: 500-3200 m. 5. Neighbouring fields: Olhovskoye,

Kondrashevskoye (Ukraine), Markovskoye and Pajronovskoye (Russian Federation).

1. Seismic data over 51,5 km was acquired.

Special license for the right to use subsurface mineral resources #4307 Special license for the right to use subsurface mineral resources #4307 dated 28.01.2013 for the term of 20 years.dated 28.01.2013 for the term of 20 years.

Page 30: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

7.7. Bajdovskaya FieldBajdovskaya Field

Special license for the right to use subsurface mineral resources #4306 dated Special license for the right to use subsurface mineral resources #4306 dated 28.01.2013 for the term of 20 years.28.01.2013 for the term of 20 years.

Brief Description Completed Works

1. Location: Starobelskiy and Novoajdarskiy districts of Lugansk region.

2. Field area: 451,0 km2. 3. Initial assessment of resources:

0,75 billion m3 of gas. 4. Perspective horizons depth: 1000-

2500 m. 5. Neighbouring fields: neighbouring

fields are under geological survey.

1. It is planned to start geophysical fieldwork in April -May 2013 – 43km.

Page 31: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

8.8. Novoalexandrovskaya FieldNovoalexandrovskaya Field

Special license for the right to use subsurface mineral resources #4308 dated Special license for the right to use subsurface mineral resources #4308 dated 28.01.2013 for the term of 20 years.28.01.2013 for the term of 20 years.

Brief Description Completed Works

1. Location: Stanichno-Luganskiy, Starobelskiy and Novoajdarskiy districts of Lugansk region.

2. Field area: 476,1 km2. 3. Initial assessment of resources:

0,8 billion m3 of gas. 4. Perspective horizons depth: 1200-

2400 m. 5. Neighbouring fields: neighbouring

fields are under geological survey.

1. It is planned to start geophysical fieldwork in May 2013 – 54km.

Page 32: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

9.9. Starobelskaya FieldStarobelskaya Field

Special license for the right to use subsurface mineral resources #4309 dated Special license for the right to use subsurface mineral resources #4309 dated 28.01.2013 for the term of 20 years.28.01.2013 for the term of 20 years.

Brief Description Completed Works

1. Location: Stanichno-Luganskiy, Starobelskiy and Novoajdarskiy districts of Lugansk region.

2. Field area: 448,7 km2. 3. Initial assessment of resources:

0,76 billion m3 of gas. 4. Perspective horizons depth: 1200-

2400 m. 5. Neighbouring fields: neighbouring

fields are under geological survey.

1. It is planned to start geophysical fieldwork in May 2013 – 42km.

Page 33: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

GeologyGeology Resources/well condition Resources/well condition: : summarysummary

Initial Assessment of ResourcesInitial Assessment of Resources

Area: km2 (billion m3 of gas)

1. Conventional resources 1941 8

2. Unconventional resources 95 19 (depth up to 1600 m)

3. Tight gas (6.5) 10 (Halliburton evaluation

Depth 1600 – 3500 m)

TOTAL 2036 37

Page 34: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

1.1. Enterprise owns 10 licenses on geological surveyEnterprise owns 10 licenses on geological survey ( (conventional and unconventional conventional and unconventional resourcesresources)) ;;

2. Enterprise owns the area of 2. Enterprise owns the area of 19411941 km km22 ((licenses on geological surveylicenses on geological survey),), 8 billion m 8 billion m3 3 of of resources and resources and 29 29 billion mbillion m3 3 of unconventional hydrocarbons of unconventional hydrocarbons ((coalbed methane and gas of coalbed methane and gas of low-permeability reservoirslow-permeability reservoirs););

3. All licensed fields are situated in Eastern part of Ukraine – the most resourceful gas 3. All licensed fields are situated in Eastern part of Ukraine – the most resourceful gas provinceprovince;;

4. All licensed fields are close to pipeline infrastructure no further than 10 km4. All licensed fields are close to pipeline infrastructure no further than 10 km;;5. Enterprise is apt to drill and recover al the resources it possesses: both conventional and 5. Enterprise is apt to drill and recover al the resources it possesses: both conventional and unconventionalunconventional; ;

6. Enterprise is able to perform drilling, well completion and well services without exterior 6. Enterprise is able to perform drilling, well completion and well services without exterior helphelp;;

7. Enterprise management wields political power and thus can exert influence to receive 7. Enterprise management wields political power and thus can exert influence to receive political supportpolitical support;;

8. Enterprise is ready to make Geological Survey and Surface Degassing Service a separate 8. Enterprise is ready to make Geological Survey and Surface Degassing Service a separate enterprise and become a co-founder of future joint company;enterprise and become a co-founder of future joint company;

9.9.Enterprise management is ready to organize and restructure Service after present-day Enterprise management is ready to organize and restructure Service after present-day western structure that combines local and western approaches to management;western structure that combines local and western approaches to management;

10. 10. Enterprise management is willing to attract investors for mutual field development;Enterprise management is willing to attract investors for mutual field development;11. 11. Enterprise is ready to make joint initial public offering and come into the international Enterprise is ready to make joint initial public offering and come into the international market;market;

ConclusionConclusion

Page 35: CONTACTS Address and telephone Public Joint Stock Company “Shakhta imeni O.F. Zasyadka” Address: Zasyadko ave, Donetsk, Ukraine 83054 Telephone: +38 (062)

Work Program for Work Program for 20132013 Title

Cost, thous. Comments

Hrn. Dol.

I Completing Units and Spare parts for Drilling Rigs К 225 and К 160, including: 119625.00 14953.13

Drilling tool (including Drill Collar) 20000.00 2500.00

Top drive for К225 7760.00 970.00

BOP system 12400.00 1550.00

Tubing, m 3600.00 450.00

II Cementing equipment 9041.00 1130.13

III Geophysical equipment 26029.23 3253.65

IV. Geologic exploration at 9 site licenses of PJSC Shakhta imeni A.F. Zasyadko 30000.00 3750.00

V. Drilling of geologic exploration wells 515000.00 64375.00

a) Volodarskaya field, wells #2,3,4 122400.00 64375.00

b) Zakutnyaya field, wells #2,3 76400.00 9550.00

c) Severolobachevskaya Field, wells # 1,2 76400.00 9550.00

d) Zapadnoderkulskaya Field, wells #1,2 76400.00 9550.00

д) Yampolskaya Field 51000.00 6375.00

е) Veselenovskaya Field 46600.00 5825.00

VI. Construction of gas treatment areas 65800.00 8225.00

а) Volodarskaya area 29600.00 3700.00

б) Zakutnyaya field 36200.00 4525.00

VII. Drilling rig 350 t 116800.00 14600.00

TOTAL without VAT 882295.23 110286.90

with VAT 1058754.28 132344.28