Gazprom discovered a new field in the Kirinsky block explored within the Sakhalin III project.

A natural gas inflow was reported during the prospecting activities in the exploratory well No.1 drilled to the depth of 2,795 meters.

Between 2010 and 2013 it is projected to perform a follow-up exploration and estimation of the field reserves.

Background:

Gazprom performs geological exploration within the Sakhalin III project as stipulated by the state-run Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries. The Program was approved by the Russian Federation Industry and Energy Ministry in September 2007. Gazprom was appointed by the Russian Government as the Program execution coordinator.

Gazprom holds subsurface use licenses for the Kirinsky, Vostochno-Odoptinsky, Ayashsky blocks and the Kirinskoye field (located within the Kirinsky block) explored as part of the Sakhalin III project.

Sakhalin III gas reserves and resources are estimated at some 1.4 trillion cubic meters.

Sakhalin III gas will be fed into the Sakhalin – Khabarovsk – Vladivostok gas transmission system.