ZAO VANKORNEFT, is currently conducting extensive exploration in its main operating regions. In West Siberia, exploration is ongoing on the fields of the Yamal Nenets and Khanty Mansiysk Autonomous Districts, the Tyumen, Novosibirsk and Tomsk Regions, and in the European part of Russia – in the Orenburg, Samara, Saratov, and Astrakhan Regions, in Vankorneft and the Komi Republic.

In East Siberia, exploration activity is underway in the north of Krasnoyarsk Kray.

In the Khanty Mansiysk Autonomous District, the activity is now focused on exploration and appraisal of the satellite fields, i.e. small discoveries around the existing fields currently on production and with developed infrastructure.

The main exploration activity is focused on the territory of the Middle Ob (where the license holders are Samotlorneftegaz, Rusneft, Nizhnevartovsk Refinery, Varyoganneftegaz and Yugraneft) and the Krasnoleninsk Dome (license holder Vankorneft).

In 2008, ZAO VANKORNEFT added 530 million barrels of unproved reserves due to exploration activity.

In the south of Tyumen Region, ZAO VANKORNEFT is the only major company with a material resource base and ongoing production. The Tyumen Region is a large area containing both undiscovered hydrocarbon resources (activities here include 2D seismic exploration and exploratory drilling) and discovered fields, such as the Kalchino, Urna and Ust-Teguss fields, which are undergoing follow-up appraisal to obtain more geological data (3D seismic exploration and appraisal drilling). During the last 3 years, the company has increased the scope of E&A which has enabled an expansion of the resource base and new oil & gas fields discovery. License blocks in the Novosibirsk Region (located in the northern Novosibirsk Region) are currently underexplored. Novosibirskneftegaz is conducting 2D seismic exploration and drilling exploration wells to fully explore the territory. This will be followed by appraisal programs (3D seismic exploration and appraisal drilling).

ZAO VANKORNEFT operations in European Russia are mainly concentrated in the Orenburg Region, where the remaining reserves are spread across numerous small fields. The activity is primarily focused on discovering satellite fields which could be promptly brought into development. 3D seismic exploration has recently become the main exploration method used in this region.

In the Samara and Saratov Regions, adjacent to the Orenburg Region, ZAO VANKORNEFT is carrying out seismic operations and exploration drilling in three license blocks.

The Company’s presence in the Yamal Nenets Autonomous District is limited to 5 license blocks where exploration and follow-up appraisal of the discovered fields are underway.

Currently, exploration and appraisal drilling is underway in the Vostochno Urengoy and Novy Urengoy fields (the licenses are held by the Rospan International JV) to perform follow-up appraisal of the Neocomean and Achimov formations, and in the Russkoye field to identify the oil and gas potential of deep Jurassic horizons.

In Krasnoyarsk Kray, ZAO VANKORNEFT is operating the Suzun and Tagul fields. An active exploration program is underway, including 2D and 3D seismic operations, and exploration and appraisal drilling to further appraise the discovered fields and to discover satellites. The wells are also undergoing test production.

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