Edc presentation dr_ultimate_oil_services_and_e&p_conf

Eurasia Drilling Company Limited

Eurasia Drilling Company Limited

Dahlman Rose conference Excellence in Service -

Leadership in Growth

3rd December 2012

Eurasia Drilling Company Limited Eurasia Drilling Company Limited

Disclaimer

The materials contained herein (the “Materials”) have been prepared by Eurasia Drilling Company Limited (the “Company”) and its subsidiaries and associates (the “Group”)

solely for use at presentations in December 2012. By accepting the Materials or attending such presentation, you are agreeing to maintain absolute confidentiality regarding

the information disclosed in the Materials and further agree to the following limitations and notifications.

The information contained in the Materials does not purport to be comprehensive and has not been independently verified. The information set out herein is subject to

updating, completion, revision, verification and amendment and such information may change materially. The Company is under no obligation to update or keep current the

information contained in the Materials or in the presentation to which it relates and any opinions expressed in them are subject to change without notice. The Company and its

affiliates, advisors and representatives shall have no liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of the Materials.

The Materials are strictly confidential and do not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or

otherwise acquire, any securities of the Company or any member of the Group nor should they or any part of them form the basis of, or be relied on in connection with, any

contract to purchase or subscribe for any securities of the Company or any member of the Group or global depositary receipts representing the Company’s shares nor shall it

or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. This document is neither an advertisement nor a prospectus. The

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The Materials are directed only at (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, (the

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is not a relevant person should not act or rely on the Materials or any of their contents.

Neither the Company’s share nor global depositary receipts representing the same have been, nor will they be, registered under the U.S. Securities Act of 1933, as amended,

or under the applicable securities laws of Australia, Canada or Japan. Any such securities may not be offered or sold in the United States or to, or for the account or benefit of,

US persons except pursuant to an exemption from registration and, subject to certain exceptions, may not be offered or sold within Australia, Canada or Japan.

No representation or warranty, expressed or implied, is made by the Company and any of its affiliates as to the fairness, accuracy, reasonableness or completeness of the

information contained herein and no reliance should be placed on it. Neither the Company nor any other person accepts any liability for any loss howsoever arising, directly or

indirectly, from reliance on the Materials.

The Materials include forward-looking statements which are based on current expectations and projections about future events. These forward-looking statements are subject

to risks, uncertainties and assumptions about the Company and its subsidiaries and investments, including, among other things, the Group’s results of operations, the

development of its business, trends in the oil field services industry, and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the

events in the forward-looking statements may not occur. Neither the Company nor any other member of the Group undertakes to publish any revisions to any forward-looking

statements to reflect events that occur or circumstances that arise after the date of the Materials. In particular, we note that, unless indicated otherwise, the market and

competitive data in these Materials have been prepared by REnergy CO (“REnergy”) and Douglas-Westwood Limited (“Douglas-Westwood”), a global consulting and services

organisation focused on the energy and marine industries. REnergy and Douglas Westwood compiled the historical data presented in these Materials from a variety of

published and in-house sources, including interviews and discussions with market participants, market research, web-based research and competitor annual accounts.

REnergy compiled their projections for the market and competitive data beyond 2011 in part on the basis of such historical data and in part on the basis of their assumptions

and methodology. In light of the absence of publicly available information on a significant proportion of participants in the industry, many of whom are small and/or privately

owned operators, the data on market sizes and projected growth rates should be viewed with caution.

The Materials are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other

jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such

jurisdiction. The Materials are not for publication, release or distribution in Australia, Canada, Japan or the United States.

2


Leading Drilling Company

Largest onshore driller and only

independent Russian offshore

driller

EDCL Investment Highlights – Key Attributes

Leading Management

High operational expertise and

insightful strategic vision

Strong Results

Established track record of

profitable growth and cash flow

generation

Quality Rig Fleet

Flexible, efficient and relevant

equipment

Expanding Prospects

Exposure to high growth

domestic markets & increasing

international opportunities

3


The EDCL Story – Market Leader in a Leading Market

Phase I

2005 – Q3 2008

Growth and Efficiency

Phase II

Q4 2008 – 2009

Crisis Response

Phase III

2010 – 2012

Re-gearing for Growth

Phase IV

2013 – 2015 +

Delivering Growth

Market

Environment

• Rapid production

growth

• Soaring commodity

prices

• Hyrdofrac

effectiveness declining

• Oil price collapse

• Significant cuts in

upstream capex

• Weakening of Ruble

• Oil price recovery

• Boost in upstream

capex

• Govt. drive for stable

oil production

• Industry restructuring

• Drive to maintain

Russian oil production

• Increasing complexity

of drilling

• Ageing & incompatible

Russian rig fleet

Strategy • Grow volumes

• Grow market share

• Boost margins through

operating efficiency

• Sustain volumes

• Preserve margins

• Reduce capex to

maintain B/S strength

• Continue investment in

rig fleet

• Focus on core

strengths

• Develop offshore

capability

• Extend leadership

position

• On-going investment

in rigs & infrastructure

• Further enhancement

of productivity &

expertise

Achievements

• Metres drilled +138%

(2008 vs 2005)

• Revenues +211%

(2008 vs 2005)

• Margins 11.9% to

21.5% (2005 to 2008)

• Metres drilled in 2009

-6.7%

• Margins 21.5% to

23.1% (2008 - 2009)

• 2009 capex down 67%

• Share buy-back

• 2010 capex rose to

$284m from $107m in

2009

• Schlumberger alliance

• 2 jack-up rigs ordered

?

4


EDCL Investment Case – Consistent Profitable Growth

Leadership - market leading position in innovation and growth

Secure fundamentals – stable core market environment – less volatile than other major drilling

markets

Growth - multiple growth opportunities in both core markets and developing markets

Higher value for our customers – investment & partnerships enhancing the customer proposition

Efficiency – long experience of driving operational efficiencies with more benefits to accrue

Commitment to strong shareholder returns – leadership position and prudent financial

management will continue to deliver strong free cash flow; focus on shareholder returns

5

Source: Company data Source: Company data

40

80

120

160

200

240

280

1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12

$m Ave YoY growth of 38% in qtrly

EBITDA

0%

5%

10%

15%

20%

25%

30%

2005 2006 2007 2008 2009 2010 2011

EDC ROCE

WACC=

12.8%


Market Outlook – Structural Themes

1. Expanding prospects

• Russian economy highly dependent upon oil and gas industry (ca. 50% State revenues)

• Sustaining oil production requires more aggressive drilling – estimated 7-10% pa drilling growth

required

• Migration to more remote greenfield regions where operations, logistics and geology can be

more challenging

• Offshore opportunities in Caspian sea and other areas

Source: REnergyCO 2012 Source: REnergyCO 2012

-4

1

6

11

16

21

26

31

36

6

8

10

12Russian oil production v. development drilling

Crude Oil Production (lhs) Development Drilling (rhs)

m bpd m metres

-150

050

250

450

650

850

1050

1250

1450

1650

2012F 2013F 2014F 2015F 2016F 2017F

Incremental oil production by region

Other TyumenTomsk

East Siberia Timan Pechora

YamalNenets Volga-Urals

KhantyMansisk

000’s bpd

6



2. Ageing rig fleet ill-suited for increasing drilling complexity

7

The Russian drilling fleet

Average depth of Russian wells (metres)

Rig additions to Russian fleet

• Industry issues

‐ Many existing onshore rigs approaching end of 25

year useful life

‐ Fewer rigs capable of drilling deeper and more

complex wells

‐ Industry facing massive investment requirement in

next 5 years

EDC Total Russian Fleet

Average age 12 16

Average drilling depth 3,500 3,100

2,0

10

2,1

40

2,3

80

2,3

80

2,4

10

2,6

10

2,6

50

2,7

30

2,6

90

2,8

50

2,9

30

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: Douglas Westwood 2012

Source: Douglas Westwood 2012, Company estimates

Source: REnergyCO 2012

0

50

100

150

200

250

300

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012F

No.

of

rigs



3. Industry Structure

• Drilling industry less cyclical than western ‘spot’ markets

8

0

500

1,000

1,500

2,000

2,500

Jan-0

2

Apr-

02

Jul-02

Oct-

02

Jan-0

3

Apr-

03

Jul-03

Oct-

03

Jan-0

4

Apr-

04

Jul-04

Oct-

04

Jan-0

5

Apr-

05

Jul-05

Oct-

05

Jan-0

6

Apr-

06

Jul-06

Oct-

06

Jan-0

7

Apr-

07

Jul-07

Oct-

07

Jan-0

8

Apr-

08

Jul-08

Oct-

08

Jan-0

9

Apr-

09

Jul-09

Oct-

09

Jan-1

0

Apr-

10

Jul-10

Oct-

10

Jan-1

1

Apr-

11

Jul-11

Oct-

11

Jan-1

2

Apr-

12

Jul-12

Russia vs. North American drilling activity

North America Rig Count Russia Volumes (m/mo)

Source: Baker Hughes Inc./REnergyCO 2012

(km/mo)


Russia Rest of World

• L-T contract model ‐ Lower volatility of pricing and margins

• Spot market ‐ Higher pricing & demand volatility

• Turnkey ‐ Optimal for simple drilling solutions

• Dayrate ‐ Optimal for more complex solutions

• Static, basic and ageing rig fleet ‐ Low efficiency and low utilisation

• Versatile, mobile rigs ‐ Transition will increase utilisation

• Mostly small independent players,

c40% of market are in-house ‐ EDC can sustain leadership for longer

• All independent, for-profit ‐ More competitive market

• Full service ‐ Integrated project management model

• Discrete service providers ‐ Specialisation

“Surprisingly similar, but also very different”

Russian business model differs to RoW - playing to EDC’s strengths

9


2008/09 Case Study – Russian market and RoW

Russian drilling market characteristics result in less volatility

10

EDC Experience North America Experience

Volumes 2009 metres drilled decreased 7% 2009 average rig count decreased 42%

Pricing Essentially flat Day rates declined

Customers Oil companies in Russia broadly able to

maintain capex; sheltered from oil price fall by

decline in Rbl/US$ fx rate

Significant capex cuts; major impact on rig

counts

Costs EDC cut costs and preserved margins Margin collapsed

50

70

90

110

130

150

170

190

210

230

250

2007 2008 2009 2010 2011

EDC v. North American peers: active rigs

Active Rigs US Peers Active Rigs EDC

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2007 2008 2009 2010 2011

EDC v. North American peers: net income margin

Net Income Margin US Peers Net Income Margin EDC

Sources: Company data, published annual reports for PTEN, HP, ESI & PD

(NBR does not publish rig utilization) Sources: Company audited results; published annual reports for PTEN, HP, ESI,

PD & NBR



4. Competition

• In-house operations being privatized or sold but

challenges of:

‐ Ageing assets with limited capabilities

‐ Cost centre vs customer service attitude

‐ Infrastructure & mobility requirements

‐ Financial leverage constraints

Russian drilling market share 2007*

11

• International operators:

‐ Barriers to entry

‐ Logistical challenges

‐ Integration issues

Russian drilling market share 2012 (1H)*

*by metres drilled

Source: CDU TEK and Company estimates Source: REnergyCO 2012

22.3%

58.4%

19.3% EDC

In-house

All otherindependents

28.5%

39.9%

31.6%

EDC

In-house

All otherindependents

Russian drilling market*: 2007 – 2012F +49% EDC market share*: 2007 – 2012 22% to 29%



Offshore developments – Caspian Sea

12

LUKOIL discoveries in Russian sector

Numerous blocks in exploration in Kazakh

waters and Turkmenistan in development phase

3 jack-up rigs currently in operation

(2013 demand expected to be 6-7 rigs)

Approx 3% of world oil reserves

Barriers to entry – time and costs to deliver new

jack-up rig

Medium term – further exploration development

and production plans


EDC Strategic Response

1. Grow the business from a Leadership Position

• Strategic Leadership

‐ Bought LUKOIL’s drilling assets in late 2004

‐ Successful IPO in 2007

‐ Successfully diversifying customer base

• Market Share Leadership

‐ 1 in 4 wells in Russia drilled by EDCL

‐ EDCL owns 2 of the 3 available jack-ups in the Caspian

Sea

• Efficiency Leadership

‐ Margins have more than doubled since 2005

‐ Youngest and most versatile rig fleet in Russia

EDC continues to grow faster than the Market

-

1,000

2,000

3,000

4,000

5,000

2005 2011

Metres drilled

18.8% CAGR

'000 mtrs

Mkt - 11.8% CAGR

-

400

800

1,200

1,600

2,000

2,400

2,800

2005 2011

Revenues

26.3% CAGR

$m

Mkt - 15.7% CAGR

13

Source: REnergyCO 2012/Company data

Source: REnergyCO 2012/Company data


EDC Strategic Response

2. Focus on the most attractive Growth Opportunities

• Strong revenue growth dynamic in core markets

• Other large medium-term opportunities – tight oil and Arctic

• Exploring international opportunities

3. Maintain our Leadership in Innovation and Efficiency

• Investing in our rig fleet

• Investing in our people

• Building partnerships to enhance our service

4. Improve capability to offer more higher-value services

• Opportunistic acquisitions at the right price

• Strategic alliances

14


Customers as Partners – Anticipating their needs

Customers evolving needs

• Maintaining brownfield production becoming

an increasingly complex problem

• Huge growth in horizontal drilling,

underbalanced drilling, complex wells

• Shift towards greenfield production, offshore

and shale

• Customer’s increasing challenges require a

different approach to risk sharing

EDC development

• Stronger, heavier and more versatile fleet

• Relationship with Schlumberger

• New model to proportionately share risk

15

Conventional vertical well Complex horizontal well

Flow rate (bbs/day) 291

787

IRR at Urals blend = US $100/bb 15%

28%

Case Study

Much higher flow rates make advanced drilling attractive for our customers

Gazprom Q2 2012 results; Credit Suisse estimates


Drilling Market – Growing complexity of customer needs

16

0

2

4

6

8

10

12

14

16

18

20

2005

2006

2007

2008

2009

2010

2011

2012F

2013F

2014F

2015F

Russian onshore drilling US$ billions

Vertical & Deviated Horizontal Sidetracking Workover & Well Servicing

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

US drilling rig count by well type (%)

Horizontal Conventional

Source: Baker Hughes Inc.


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Russia horizontal and conventional drilling (%)

Conventional Drilling Horizontal Drilling


US$ bn

1,184

1,475

1,549

1,649

1,387

1,792

2,235

3,000

3,600

4,000

4,400

2005

2006

2007

2008

2009

2010

2011

2012F

2013F

2014F

2015F

Horizontal drilling in Russia (‘000 metres)



Substantial Medium-term Market Opportunities

• Tight oil/ Bajenov shale play

‐ Western Siberia up to 60-140bn barrels

‐ Geography aligns with EDC network infrastructure

‐ Modern rigs required to efficiently address complexities

of tight oil

Distribution of geological formations

17

Self-Sourced Bazhenov

Fractured Reservoirs

Assessment Unit

11740102

West Siberian Basin

Geologic Province 1174

Source: Bank of America Merrill Lynch Source: Rosneft


Margin Improvement Potential – Focus on Rig Utilisation

Efficient utilisation of assets is a key driver of EDC profitability

18

Support organisation optimisation

• Divested transport & well services

• Support base consolidation program

throughout operations

• Supply chain rationalisation

• Current programs include:

‐ Relocation of Zhirnovsk infrastructure 600km

closer to rig teams

Further utilisation improvements

• Faster moving rigs

• 1 Rig/1 Crew strategy

• Migrating from crew-based scheduling to rig-

based scheduling 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 9M-12

Drilling fleet utilisation (excludes Sidetrack rigs)

Active Moving/ Rig-up/dn Total Utilised

Source: Company data


Enhancing the Proposition via Acquisitions & Partnerships

Acquisitions and partnerships to extend geographic reach, expand

complementary services or enable higher quality offering for customers

19

Schlumberger (SLB) transaction Case Study

Bought: 19 drilling, 23 sidetracking and 34 workover

rigs

• Young, high-spec rig fleet

• Significant additional sidetrack and workover capacity

• Very high quality crews

Sold: drilling services business (directional drilling &

measurement, cementing and drilling fluids)

• Non-core

• High benefit from provision by SLB

Other benefits realised

• Closer alignment with all SLB product lines

• Greater efficiencies in customer service

• Enhanced offshore service capability

• Strategic Alliance to capture future projects


Financial Performance – Strong Growth with High ROCE

Key Messages

• Strong, consistent

growth since 2007

• Outperforming market in

metres drilled, revenues

and EBITDA

• Preserving high ROCE

• Record results in Q3

2012

Robust core business

Record results Q3 2012

20

9M 2011 9M 2012 Change (%)

Metres drilled (000’s) 3,668,942 4,582,644 +25

Revenues (US$m) 2,042 2,402 +17

EBITDA (US$m) 447 614 +37

2007 2011 CAGR (%)

Metres drilled (000’s) 3,269 4,777 +9.95

Revenues (US$m) 1,492 2,752 +16.5

EBITDA (US$m) 313.8 597.2 +17.5

EPS (US$) 1.15 1.89 +13.2

ROCE(%)* - 24.2% N/A

*ROCE is calculated as Income from operations divided by capital employed (total shareholders’

equity plus net debt)


Capex geared to meet the most complex customer needs

• 32 new onshore rigs

expected in next 3 years:

‐ 26 heavy-weight rigs

‐ 6 light-weight/mobile rigs

• Up to 30 medium-weight

rigs for retrofitting

• Jack-up rig orders

‐ $235m per rig

‐ Neptune due for delivery

mid-2013

‐ On budget

‐ Mercury due for delivery

end 2014

• Other

‐ North Iraq in 2012/13

Capital Expenditure

21

$m

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F

Onshore- Maintenance Onshore- Investment

Offshore Other- onshore


Incremental Growth Opportunities

22

• Bolt-on acquisitions in core markets

• Tight oil opportunity (Bazhenov)

– MOU with LUKOIL/SLB

• MENA

– 3rd largest onshore market globally

– Acquisition led strategy

• Offshore

– Caspian

– Arctic

Strong Balance Sheet and established

Partnerships enhance our long-term

optionality

0

500

1,000

1,500

2,000

2,500

3,000

0

250

500

750

1,000

1,250

1,500

2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F

Rig counts in Russia and other major markets

Russia (lhs) MENA (lhs) N.America (rhs)

No.

of

Rig

s

Source: Douglas Westwood 2012


Disciplined M&A Methodology

Strategic criteria

• Complementary to existing portfolio

• Enhance service offering

Financial criteria

• EBITDA accretive immediately

• Earnings accretive immediately

• IRR high teens

‐ Unlevered

‐ After tax

23

Purchase of Transocean jack-up

IRR(E) +17% vs IRR(A) +20%

Asset swap with Schlumberger

$105m EBITDA first full year for

$260m purchase price

Recent acquisitions generating

attractive returns


Near-term Outlook

2012 full year guidance

• October update:

‐ Revenues: US $3.175bn (implying yoy growth of over 15%)

‐ EBITDA margin: at least 24.3% (up from 21.7% in 2011)

‐ Metres drilled: over 5.8 mln metres

2013 and forward revenue visibility

• Healthy backlog/pipeline growing strongly

• 68% of 2013 tentative budgeted revenue contracted or about to be contracted

• c. 60% of revenues p.a. in 2014-2015 expected under long-term contracts

‐ Negotiating Framework Agreement with LUKOIL (2013-2015)

‐ Long-term agreement with LUKOIL for workover services (2010-2015)

‐ Long-term agreement with TNK-BP for drilling (2012-2014)

‐ Long-term agreement with LUKOIL for LSP-1 platform (2012-2017)

‐ Agreement with Petronas (Turkmenistan) in the Caspian offshore (2013-2015)

24


Outlook for 2015 – 3 Year Target Growth Metrics

EDCL Core Business

*ROCE is calculated as Income from operations divided by capital employed (total shareholders’ equity plus net debt)

Upside Opportunities

• Bolt on acquisitions within core operating area

• Strategic acquisitions in MENA area

• Incremental demand from tight oil drilling

• Movement into Northern Offshore Waters or further expansion into Caspian

• Increase payout ratio

25

2007 2012(E) 3 Year Target Range

Revenues (US$ m) 1,492 3,175 4,500-5,200

EBITDA Margin (%) 21.0 24.3 26 to 28

PAT Margin (%) 11.3 12.0 13 to 15

Net Debt/EBITDA (x) (0.2) 0.4 0.1

ROCE (%) 24.6 23.0 22 to 25*

Eurasia Drilling Company Limited 26

Q&A

Eurasia Drilling Company Limited 27

APPENDIX


EDCL History

28 APPENDIX

OAO LUKOIL-Burenie

formed, LUKOIL’s in-

house drilling division

1996–2003

LUKOIL-Burenie drilling

business developed

December 2004

EDC acquired LUKOIL-

Burenie

Acquired ASTRA jack-up

rig from LUKOIL

Acquired 28 W/O rigs from

SLB

Operations began on LUKOIL’s

Yu.Korchagin platform

Acquired two West Siberia

W/O businesses from LUKOIL

(163 rigs)

Acquired OOO Meridian (21 W/O rigs) in

Komi Republic

Ordered NEPTUNE jack-up from Lamprell

(mid-2013 delivery)

Acquired Kaliningrad drilling business from LUKOIL (4 rigs)

SATURN jack-up rig acquired from Transocean

Schlumberger (SLB) asset transaction and strategic

alliance in Russia and CIS (19 drilling, 23 sidetrack & 34

W/O rigs)

November 2007

EDC IPO on LSE

Ordered MERCURY jack-up from Lamprell

(late-2014 delivery)

Entered Iraq acquiring 2+1 drilling rigs

2012

2011

2010

2009

2008

2007

2006

2004

1996-2003

1995


EDCL – Strong Presence in All Regions

Geography of operations

APPENDIX 29

Head Office

Regional/Branch Office

Support Base

Operational Areas


EDCL’s Conservative Debt Profile

• Substantial debt headroom

• Strong FCF generation

• Net debt/EBITDA stable and not to exceed approx. 1.2x if large acquisition

• EDCL US$ debt rated ‘BB/B’ (positive outlook) by S&P and ‘BB’ (stable outlook) by

Fitch

APPENDIX 30

$m 2007 2008 2009 2010 2011 2012 (E)

Net cash (debt) 59 17 252 226 (244) (368)

Net debt/EBITDA (0.19x) (0.04x) (0.79x) (0.52x) 0.41x 0.48x

Free cash flow (146) (17) 303 39 26 -

Capex 320 255 177 225 417 c. 600


Russian Onshore – EDCL fleet

EDC’s fleet modernisation programme is focussed on:

• Refurbishment of Medium Pad/Cluster rigs

‐ Workhorses of West Siberia far into the future

• Replacement of Light Stationary rigs with Mobile units

‐ Sidetracks, smaller field development & brownfield in-fill

• Replacement of Heavy Stationary rigs with predominantly Heavy

Pad/Cluster rigs

‐ Deeper plays, ERD & complex wells

EDCL fleet spread now …. And expected in the future

31

Source: Company data, (EDC rig fleet as of beginning 2012)



Rig Type

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

To

t. Rig

s

Stat io nary 1 3 1 2 4 6 1 1 1 6 6 2 34

M o bile 2 1 1 3 6 6 2 4 5 8 38

M o bile 4 2 6

P ad/ C luster 4 9 7 20 10 5 3 1 1 2 1 1 3 5 3 6 12 1 3 6 103

Stat io nary 1 3 1 3 1 1 2 2 14

Stat io nary 1 3 1 8 5 3 2 3 4 2 32

P ad/ C luster 3 1 2 4 1 1 2 5 4 8 31

Totals 1 3 5 10 22 30 18 18 9 3 3 3 2 4 8 7 5 11 8 6 17 32 6 9 18 258

Weight

Range

Light

80-180 M T

Medium

200-270 M T

Heavy

320-450 M T

EDCL fleet age 2012

34%

15%

3%

20%

28% Up to 5 years

5-10 years

10-15 years

15-20 years

>20 years

38%

27%

13%

3%

19% Up to 5 years

5-10 years

10-15 years

15-20 years

>20 years

EDCL fleet age 2015 (E)

APPENDIX


Presentation Team

• Chief Operating Officer of EDC since January 2010.

• 26 years in oilfield services sector.

• From 2009 to 2010 served as Senior Vice President of the Drilling

Services Group at Schlumberger Russia.

• Before joining Schlumberger since 2007 Mr. Sampiev was

President and a member of the Board of Directors of the

PetroAlliance Company Ltd.

• Holds a degree of Comprehensive Mechanization of Field

Development from Groznyi Oil Institute.

APPENDIX 32

Murat Sampiev Chief Operating Officer

Murat Sampiev

Chief Operating Officer


Presentation Team

APPENDIX 33

• Chief Financial Officer of EDC since July 2008.

• Board member of EDC since 2011.

• Chairman of the Board of Directors of Vanguard Natural

Resources LLC.

• Member of the Board of Directors of Transocean Ltd. from

November 2007 until June 2011.

• Member of the Board of Directors of Boots and Coots Inc. from

August 1999 until September 2010.

• Formerly, President and CEO of Prime Natural Resources Inc.

from June 2001 until April 2007.

• Certified Public Accountant and member of the Society of

Exploration Geophysicists.

• Bachelor of Science in Business-University of Colorado, Magna

cum Laude. Masters in Taxation-University of Denver.

W. Richard Anderson Chief Financial Officer of EDC


Presentation Team

• Vice President Marketing and Investor Relations of EDC since

July 2008; VP Marketing of EDC since April 2008.

• Over 30 years of experience in the oilfield services sector.

• Prior to joining EDC, Mr. Kruschwitz was employed by Baker

Hughes Inc. and its forerunners since 1981.

• Most recently Mr. Kruschwitz served as Country Director for

Baker Hughes in Nigeria, followed by an assignment as Global

Account Manager for ExxonMobil worldwide.

• Mr. Kruschwitz has extensive management, marketing and

operational experience on a global basis, including postings in

the Middle East, the Far East, Central Asia, Europe, North Africa,

West Africa and North America.

• Bachelor of Arts, Cum Laude and Fellow in Chemistry from

Jamestown College.

APPENDIX 34

Kim Kruschwitz Vice President, Marketing

& Investor Relations