Ad-hoc Report - Komsomolskoe Oil Field in Kazakhstan enters the development phase

In compliance with Law nr. 297/2004 and Regulation no. 1/2006 of CNVM

Date of report : September 22, 2006
Name of issuer : PETROM S.A.
Headquarters : Bucharest, Calea Dorobantilor nr. 239 sector 1
Telephone/fax number : 021 4060101/021 4060436
Sole registration number at the Trade Register Office: 1590082
Fiscal attribute : R
Trade Register Number: J 40/8302/1997
Share capital: 5,664,410,833.5 RON
Regulated market on which the issued shares are traded : Bucharest Stock Exchange

Significant event to be reported:

Komsomolskoe Oil Field in Kazakhstan enters the development phase

Petrom has approved the development plan for Komsomolskoe oil field located in Kazakhstan. The oil field development is planed to be finalized in 2008 and will result in a daily production rate of 10,000 boe for the following years. The Caspian Sea Region is a core region for Petrom in terms of international company growth. It is a high potential area to be fully used and supported by investments, modern technologies that Petrom is using and, especially by company’s field experience.
According to the new exploration and production strategy, adopted in 2005, Petrom uses the most modern techniques especially 3D seismic, at a large scale.
In this way, after the privatization a new 3D seismic program was completed on the Komsomolskoe oil field. A new geological model was obtained based on the 3D, together with newly acquired well test data and the application of modern simulation and modelling technologies.
Based on this new reservoir model, detailed engineering and marketing studies were completed and a field development plan was compiled. This plan consists of an access road of 90 km in length, drilling of 6 horizontal production wells, gas/oil separation facilities and an 80 km oil export pipeline. This is a far reaching project, of USD 190 mn investment, which will bring us closer to our 2010 objective of reaching a production level of 30,000 boe/day in the Caspian Region.

Petrom operates the Komsomolskoe oil field through Too Kom Munai LLP. In March 2003 Petrom SA acquired 95% of the shares of Too Kom Munai, holding the development and production rights for Komsomoskoe block. The oil field is located in West Kazakhstan onshore in Caspian peninsula.
The work program completed so far is including the 3D seismic project across the Komsomoskoe field, construction of a road and platforms within the license area, the construction of central production facilities for testing purposes and the execution of an intensive well testing campaign.
Petrom is running exploration and production operations in four areas in Kazakhstan. Currently the company is already producing above 4,000 boe/day through its Tasbulat affiliate. In 2006, Petrom’s exploration activities were successful in the Jusaly block. During exploration well testing a flow rate of 200,000 cubic meters of natural gas and 70 cubic meters of condensate per day could be achieved. The current results are strengthening Petrom’s current and future position in Kazakhstan.