Integra brochure
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February 04, 2008

Integra Group launches directional drilling service


Moscow,  February 4, 2008. Integra Group the leading Russian oilfield services provider, announces today that it has broadened the range of its technology services with the launch of directional drilling service (DDS). The Company plans to further invest around US$20 million in the development of this new product line within the next two years. Directional drilling is a highly profitable business with expected EBITDA margin in the range of 40-45%.

Smith Siberian Services (an Integra subsidiary) has established a dedicated Directional Drilling Department which will be providing engineering and technological support to the drilling process, including measurement-while-drilling (MWD) and logging-while-drilling (LWD) operations.

Directional Drilling Technology is used for cluster and multidirectional drilling in complex geological conditions where the opening of a reservoir with conventional vertical drilling is not a viable option. This technology is also used for extinguishing of burning oil and gas wells.  Further development of directional drilling services is driven by the need for more effective drilling technologies at the fields with complex geology as hydrocarbon reserves with relatively benign geology become exhausted.

Commenting on the launch, Mark Sadykhov, Executive Vice-President for Oilfield Services at Integra, said:

“Directional Drilling Service is a very promising market which is expected to show a strong growth in demand. In line with our business strategy and Customers’ demands we are continuously expanding the range of high-tech services on offer. Launch of the directional drillings service completes our high-tech well construction product line. We believe that this service will further reinforce Integra’s competitive position in the Russian OFS market”.
Notes to editors:

Integra Group is a leading Russian independent provider of onshore oilfield services and is also a leading manufacturer in the Russian Federation of drilling rigs with heavy lifting capacity, cementing equipment and certain specialized equipment used in the exploration, development and production of oil and gas.

Integra Group operates in the drilling, workover, seismic and geophysics sectors and manufactures oilfield services equipment.  Integra has oilfield services operations in all major oil and gas producing regions in Russia and in many other CIS countries. The company’s customer base includes major Russian and international oil and gas companies operating in Russia and CIS.

Established in March 2004, Integra Group has, through 16 strategic acquisitions, become one of the leading companies in the oilfield services and equipment manufacturing sectors of the Russian market and employs approximately 20 000 people.

Since February 27, 2007 Integra Group has been traded on the London Stock Exchange (symbol: INTE).

For additional information please contact:

Integra Group

http://www.integra.ru

Andrei Machanskis, Head of Investor Relations

amachanskis@integra.ru

Tel. +7 495 933 0621

Alla Sapun, Press Secretary

asapun@integra.ru

Tel. +7 495 933 0621

Financial Dynamics

Jonathon Brill / Edward Westropp

 London

+44 20 7269 7170

Anna Shumaylova

Moscow

+7 495 795 0623
Forward looking statements: These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.