Selena Oil & Gas Holding AB has received technical conditions for connection to GAZPROM pipeline

Selena Oil and Gas Holding AB (SOGH) has received technical conditions from
GAZPROM for connecting of its largest Visokovskoye gas field to GAZPROM
pipelines. This is a result of a process started in 2010 when SOGH applied to
GAZPROM to obtain technical conditions for connection to GAZPROM gas pipelines.


According to the received technical conditions the connection may be made to
either Yamburg–Povolzhe or SRTO-URAL gas pipelines, subject to SOGH fulfilling
the technical requirements for preparing its gas to GAZPROM standards. SOGH has
time up until the end of 2014 to comply with those issued technical conditions.

Furthermore, GAZPROM’s local structures have already defined the point of
connection to the pipelines for SOGH and the location of gas treatment plant,
which SOGH intends to construct. As the pipelines pass directly through the
Visokovskoye field owned by SOGH, the connection points were assigned on the
field, 1 km from the planned location of the gas treatment plant, meaning
minimum capital expenditure into pipeline building.

In order to comply with the technical conditions issued by GAZPROM, the next
step for SOGH is to engineer and construct a gas treatment plant enabling it to
deliver gas at a required quality to GAZPROM pipeline. Currently SOGH is in
negotiations with several engineering companies and gas treatment plant
producers to find the optimal technical and economic solution. After the
provider is chosen, the documentation and engineering is expected to be
completed by the end of Q4 2012. The construction is planned to begin in Q1
2013 and the facility and the production of gas is expected to come online in
2014 subject to required project financing. According to DeGolyer & MacNaughton
the peak annual sales gas production from the Visokovskoye field may reach 164
million cubic meters per year. Furthermore, additional 45 million cubic meters
of sales gas annually may be produced from Komarikhinskoye field, also owned by
SOGH and located 45 km from the assigned GAZPROM connection point.

“The gas project is a significant part of Selena Oil & Gas Holding long-term
strategy. The technical conditions from GAZPROM is a significant milestone in
the project success. We anticipate the start of production of gas in 2014 and
that apart from other initiatives will add significant scale to the operations
of SOGH”, says Indrek Rahumaa, Chairman of the Board of Selena Oil & Gas
Holding AB.

 

For further information, please contact:

Indrek Rahumaa, Chairman of the Board, phone +372 509 2080 or +7 (916) 180 31
62, email: indrek.rahumaa@selenaoil.com

Selena Oil & Gas Holding AB (publ) (former Emitor Holding AB) is engaged in the
production and transportation of oil and gas in the Volga-Ural region in the
Russian Federation, including Perm and Udmurtia. The company is listed on
NASDAQ OMX First North Premier in Stockholm under the ticker SOGH. Mangold
Fondkommission is the company´s Certified Adviser and liquidity provider,
telephone +46 8-503 015 50.