C.A.T. oil AG agrees strategic partnership with Gazprom subsidiary OOO BURGAZ

- Implementation of a long-term program for gasfield services
- Objective: To optimize natural gas production
- Move gives major boost to C.A.T.oil’s position in the growing market for gas
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July 28, 2006 - Austria-based C.A.T. oil AG (O2C, ISIN:
AT0000A00Y78), one of the leading providers of oil- and gasfield
services in Russia and Kazakhstan, has entered a strategic
partnership with OOO Burgaz (OOO Drilling Company of OAO Gazprom), a
subsidiary of the Gazprom Group. Burgaz, the principal provider of
Field services to the Gazprom Group, is responsible for centralized
management of such services in Russia and the former Soviet
republics. The strategic cooperation between C.A.T.oil and Burgaz
will involve the implementation of a long-term program under which
C.A.T.oil will provide a wide range of services for optimizing
natural gas production. C.A.T.oil will draw on its full portfolio of
services, ranging from its core business of hydraulic fracturing to
supplementary services such as workover and squeeze cementing as well
as introduce new processes for Gazprom such as side tracking, coiled
tubing- and nitrogen treatments. The two companies have been working
together in the Novi Urengoi region in Western Siberia since 2005.
Gazprom operates major production facilities in this area. Last year,
C.A.T.oil performed successful fracturing jobs on one of these
natural gas deposits for the first time with the goal of increasing
their output. Due to the positive results, the two companies are now
moving to intensify their cooperation. Manfred Kastner, CEO of
C.A.T. oil AG, said: "We are delighted by Burgaz’s confidence in
C.A.T oil’s performance. By entering into this strategic partnership,
we are underpinning our excellent position in what is still a young
growth market. Last year, we succeeded in transferring our
longstanding experience in oilfield services to gas fields. In line
with the strategy outlined during our IPO, we are now moving to
expand our business with gas producers. We believe this area has
considerable potential for growth in the coming years and intend to
leverage it through this cooperation in particular." Burgaz is active
in all regions in which Gazprom produces natural gas. The company has
recently started to implement a new E&P program in the Gazprom fields
in Eastern Siberia and Far East. www.catoilag.com

About C.A.T. oil AG: Austria-based C.A.T. oil AG (O2C, ISIN:
AT0000A00Y78) is one of the leading providers of oil- and gasfield
services in Russia and Kazakhstan. C.A.T.oil’s core business is
hydraulic fracturing, a process which helps to open up oil- and
gas-bearing rock formations in order to increase or even enable oil
and gas production. The C.A.T.oil crews use state-of-the-art methods
and technologies to generate high pressure in the oil or gas
reservoirs concerned. This pressure causes cracks to appear in the
rock through which oil or gas can be produced in larger quantities
from the production well, and hence efficiently boosts extraction,
particularly in the case of deposits that are difficult to develop or
low-output wells. In addition, hydraulic fracturing can be used to
revitalize wells that have previously been idle. The company has its
headquarters in Baden near Vienna and employed 2,230 people at the
end of 2005, most of whom are based in Russia and Kazakhstan.
Customers include leading oil and gas producers such as Gazprom,
KazMunaiGaz, LUKOIL, Rosneft, and TNK-BP.

www.catoilag.com

end of announcement euro adhoc 28.07.2006 11:30:00
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ots Originaltext: C.A.T. oil AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Press contact:
A&B Financial Dynamics
Dr. Lutz Golsch Claudia Werth
phone.: +49 (0)69 92037-110 phone.: +49 (0)69 92037-114
e-mail: l.golsch@abfd.de e-mail: c.werth@abfd.de

Branche: Oil & Gas - Upstream activities
ISIN: AT0000A00Y78
WKN: A0IKWU
Börsen: Frankfurter Wertpapierbörse / official dealing