Petrogrand AB: Application submitted to Tomsknedra shows additionally increase in C3 resources in the Nizhnepaninsky license block

Petrogrand  is pleased to  report that the  final report have  been submitted to
Tomsknedra  on increased C3-resources. The  final report C3-resources amounts to
54,8 million  tons  (411  mmbbl).  The  volume  is  distributed over four areas:
Yuzhno-Nazinskaya  24,8 million  tons),  Nizhnepaninskaya  (5,3  million  tons),
Ambarskaya  (16  million  tons)  and  Paninskaya  (8,7 million tons). During the
winter 2012 two exploration wells will be drilled in the license area.

We  have in addition to this submitted an updated C3-resouce number on Muromsky-
2. The  report includes two  of four areas  that the former licensee identified.
These  two areas include  20,5 million tons (154  mmbbl) that is somewhat higher
than  the earlier reported  numbers on these  two areas. It  is distributed over
Muromskaya  (2,1 million tons) and Ragozinskaya  (18,4 million tons). During the
winter  of 2012 one  exploration well  will be  drilled at  the area. We plan to
shoot new seismic on part of the license area during next year.


[HUG#1567240]