Allianceneftegaz owns seven exploration and production licenses representing three separate Blocks: 70, 85 and 86.

The exploration efforts of Allianceneftegaz have concentrated on the more prospective part of the acreage, Blocks 70, 85 and 86 which cover over 5900 sq km and are located directly between producing Rosneft and Gazprom Neft oil fields.

Block 70

Fields: The Maiskoye oil field located within Block 70 was the first discovery for Imperial in the Tomsk oblast. The discovery, made in 2005, tested commercial oil from Vasyugan and Tyumen reservoirs at a depth of 2,600 to 3,000 m. The second exploration success made by Imperial within Block 70 in 2007 was Glukhovskoye, from Paleozoic carbonates. Testing was successful. The third exploration success made by Imperial in 2007 was the North Chertalinskoye field.

New Discovery: In December 2007 the new exploration well on South Maiskoye successfully tested commercial oil flow from the Tyumen reservoir. In addition, this well discovered Vasyugan oil bearing sands, confirming the existence of both Vasyugan and Tyumen reservoirs extending from the productive Maiskoye field a few kilometers to the NE. This new field is located in the South-Eastern corner of Block 70.

Block 85

Fields: South Festivalnoye and Tamratskoye oil fields are located within Block 85. The fields were discovered by Soviet exploration activity between 1986 and 1987. The principal pay zones of South Festivalnoye are Lower-Middle Jurassic Tyumen reservoirs at a depth of 2,700 to 2,900 m and Upper Jurassic Vasyugan sandstones at a depth of 2,800 to 2,840 m of Tamratskoye field. Both South Festivalnoye and Tamratskoye wells have been successfully drilled in 2007 with oil identified. Tamratskoye was successfully tested. South Festivalnoye testing will continue in 2008.

Prospects: The East Festivalnaya and Nyulginskaya prospects are located in Block 85. The East Festivalnaya prospect is geologically very similar to the South Festivalnoye oil field. The expected pay zones are Lower Cretaceous Achimov sandstones at a depth of 2,650 to 2,680 m, Upper Jurassic Vasyugan sandstones at a depth of 2,800 to 2,850 m and Tyumen sandstones (Yu-4 – Yu-11) at a depth of 3,100 to 3,200 m. Nyulginskaya prospect was successfully drilled in 2007 with oil identified and is awaiting testing in 2008.

Block 86

Fields: The Chagvinskoye and Vodorazdelnoye oil fields are located in Block 86. Imperial drilled an exploration well in 2006 in the Chagvinskoye field and confirmed Vasyugan reservoir pay zones at a depth of 2,650 to 2,670 m. The Vodorazdelnoye field was discovered in 1976 from Tyumen reservoirs at a depth of 2,760 to 2,780 m. Vodorazdelnoye – 3 which was spudded in April 2007 has now been completed. The well has successfully tested commercial hydrocarbons in the Tyumen reservoir from a depth of 2,767.9 metres with a total thickness of 28.3 metres net pay. The well has been tested as to the Yu-7 reservoir which successfully identified this section as commercially produceable gas condensate. Chagvinskoye was also successfully drilled in 2007, identifying oil and is awaiting testing in 2008.

Prospects: Elley-Igaiskaya, Khilkinskaya, North Urmanskaya and Lvovskaya prospects are located within Block 86. During Soviet exploration activity 15 wells were drilled in this Block. Overbalanced drilling and poor well completion resulted in severe formation damage and negative test results. Traces of oil in recovered core samples and log interpretation data supports significant potential for the Vasyugan and Tyumen reservoirs.

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