Integra brochure
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June 09, 2008

Integra Group acquires well workover company NKRS


Integra Group (LSE: INTE), a leading Russian oilfield service provider, announced today that it has acquired NKRS (ZAO Nizhnevartovskyi Kapitalnyi Remont Skvazhin), the largest well workover company in Khanty-Mansyisk Autonomous Okrug.

Integra acquired NKRS and its related subsidiaries for a 50/50 cash and share consideration of US$54 million, including the assumption of US $1.8 million of debt.

NKRS is a growing company which has 54 crews, operating a total of 32 workover rigs, 2 coil tubing units and 5 cementing units. The Company, based in Nizhnevartovsk, operates mainly in Western Siberia for clients that include: TNK-BP, Slavneft-Megionneftegaz, Vanyeganneft and others.  Based on unaudited data, NKRS’ revenue for the FY2007 amounted to US$50.3 million.
Commenting on the transaction, Mark Sadykhov, First Deputy CEO of Integra Group, said:

“NKRS has been in this market for more than six years and has created a good operational reputation, and provides exposure to strong customer base and order book. Together with the workover acquisition made last year, we believe we have created one of the largest providers of workover services in Western Siberia which is expected to provide good efficiency benefits and flexibility of operations”.
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 17 strategic acquisitions, become one of the leading companies in the oilfield services and equipment manufacturing sectors of the Russian market and employs approximately 22,000 people.

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

Integra Group 

Andrei Machanskis Head of Investor Relations Tel. +7 495 933 0621

amachanskis@integra.ru

Alla Sapun

Press Secretary

Tel. +7 495 933 0621

asapun@integra.ru

Financial Dynamics 

Jonathon Brill/Edward Westropp London Tel. +44 20 7269 7170

Edward.Westropp@fd.com