EANS-News: C.A.T. oil AG / 2014-16 investment program of EUR 390 million

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Subtitle: - Capacity increase of EUR 300 million in addition to EUR
90 million for maintenance

- Significant expansion of operating capacity for all core services:
fracturing by 33%, sidetracking by 55% and drilling by 170% by YE2016
from YE2013

- CEO Manfred Kastner: “Building upon the momentum that C.A.T. oil
and the broader industry have enjoyed we will invest a further EUR
300 million to support our sustainable profitable growth in the
upcoming three years.”

Strategic management decisions/Investment program

Wien (euro adhoc) - 19 November 2013 - C.A.T. oil AG (O2C, ISIN:
AT0000A00Y78), one of the leading providers of oil and gas field
services in Russia and Kazakhstan, will invest EUR 390 million from
2014 to 2016, EUR 300 million dedicated to bring on stream new
operating capacity and EUR 90 million for maintenance. The approved
investment program suggests that by the end of 2016 operating
capacities shall increase by 33% for fracturing, 55% for sidetracking
and 170% for drilling compared to the end of 2013. Through this
investment the Company shall not only materially enhance its
operating activities and business scale but also develop a more
balanced service portfolio.

The total investment shall be split between the Company's operating
and re-portable segments as follows: approximately 20% of the total
capex will be allocated to Well Services and around 80% to Drilling,
Sidetracking and IPM. The 2014-16 investment program aims at
expanding significantly the Company's business to meet the growing
intensity and complexity of customers' up-stream operating
activities.

A favorable product mix development combined with the Company's
efficient cost management should further improve profitability over
the period. The Company will remain focused on its primary offering
of fracturing, sidetracking and drilling services, though might
undertake further expansion of its complementary services such as
well completions should Russian producers expedite the development of
tight oil resources in 2014-2016.

Manfred Kastner, C.A.T. oil CEO, commented: "Building upon the
momentum that C.A.T. oil and the broader industry have enjoyed we
will invest a further EUR 300 million to support our sustainable
profitable growth in the upcoming three years. We will do so in a
very flexible way tailored to the needs and short- to mid-term
production plans of our customers. We have already proven our
competence in rolling out expansion programs efficiently,
economically and in a timely manner several times as witnessed by our
successful diversification into sidetracking services in 2006-08 and
drilling operations in 2011-12. Although we remain primarily adhered
to our organic growth strategy, we continue screening selective M&A
opportunities, which emerge from time to time in the Russian oilfield
services market."

The 2014-16 investment program constitutes the next phase of C.A.T.
oil's ambitious expansion strategy and follows the previous two
investment cycles: In 2006-08 the Company invested more than EUR 100
million in sidetrack drilling thus successfully diversifying the
Company's service portfolio. With equal consistency and determination
the Company undertook the 2011-12 investment program of EUR 150
million primarily aimed at expanding into high class drilling. The
Company's total investments in growth, diversification and
maintenance of operating capacities amount to EUR 400 million since
its IPO in 2006. Building on the experience gained in the past and
positive market prospects for the Russian oil and gas industry,
C.A.T. oil is more than confident in setting once again the right
priorities for the future success and prosperity of the Company, its
shareholders and employees.

The Company will finance its 2014-16 investment program through a
combination of operating cash and long-term debt. Upon C.A.T. oil
AG's request, the Company's majority shareholder CAT. Holding
(Cyprus) Limited has ex-pressed its consent to enlarge and extend
until November 2018 the existing committed credit line of EUR 100
million on an arm's length basis thus demonstrating its full
commitment going forward. Despite significant investments in the next
three years, C.A.T. oil foresees modest leverage, staying below its
internal guidelines for the Debt-to-EBITDA ratio of less than 2.0
times.

www.catoilag.com

Press contact:

FTI Consulting
Thomas M. Krammer
Phone: +49 (0)69 92037-183
Email: thomas.krammer@fticonsulting.com

Steffi Fahjen
Phone: +49 (0)69 92037-115
Email: steffi.fahjen@fticonsulting.com

About C.A.T. oil AG:

C.A.T. oil AG is one of the leading independent oil and gas field
service contractors in Russia and Kazakhstan and is listed on the
Frankfurt Stock Exchange (SDAX). C.A.T. oil provides a range of high
quality services, which enable oil and gas producers to extend
lifecycle of their fields or bring yet unexploited oil and gas
reserves to production. Since its foundation in 1991 in Celle,
Germany, C.A.T. oil has built up a leading hydraulic fracturing
service, a very effective method of well stimulation by cracking rock
formations with pressurized fluids, in Russia and Kazakhstan.
Following its IPO in 2006, the Company developed a second core
service of sidetrack drilling in 2006-08 and has established a strong
presence in Russia's sidetrack drilling market. Sidetrack drilling is
a term used to describe drilling of a new wellbore from the upper
section of an existing well. In 2011-12, the Company launched the
next phase of its growth and diversification strategy and set up high
class drilling operations as a third core service offering. High
class drilling is the classical technology of drilling vertical,
inclined and horizontal wells for extraction of oil and gas. In
total, the Company has already invested more than EUR 400 million in
growth and diversification since its IPO in 2006. Following the
successful set up of high class drilling in 2011-12, C.A.T. oil
introduced its new segment reporting in 2013 clustering its
activities in "Well Services" (fracturing, cementing and completion
operations) and "Drilling, Sidetracking and IPM (Integrated Project
Management)". C.A.T. oil's customer base includes the leading Russian
and Kazakh oil and gas producers such as Gazprom, Rosneft, Lukoil,
TNK-BP and KazMunaiGaz. The Company has long-standing relationships
with these customers and has been a reliable service provider since
its market entrance in the early nineties. C.A.T. oil has its
headquarters in Vienna. The Company's H1 2013 weighted average
headcount stood at 2,641 people, most of which are based in Russia
and Kazakhstan.

Disclaimer:

This document contains various forward-looking statements which
reflect the current views of C.A.T. oil's management with respect to
certain future events, performances and financial results. However,
future events, performances and financial results, being per se
uncertain and subject to various internal and external factors, may
differ materially from the expectations expressed explicitly or
implicitly in any such forward-looking statements.

Further inquiry note:
Thomas Krammer Tel: +49(0)69-92037-183 Email: thomas.krammer@fticonsulting.com
Steffi Fahjen Tel: +49(0)69-92037-115 Email: steffi.fahjen@fticonsulting.com

end of announcement euro adhoc
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company: C.A.T. oil AG
Kärntner Ring 11-13
A-A-1010 Wien
phone: +43(0) 1 535 23 20 - 0
FAX: +43(0) 1 535 23 20 - 20
mail: ir@catoilag.com
WWW: http://www.catoilag.com
sector: Oil & Gas - Upstream activities
ISIN: AT0000A00Y78
indexes: SDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt
language: English