Eurasia Drilling : Update on Proposed Merger

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

30 September 2015

EURASIA DRILLING COMPANY LIMITED

UPDATE ON MERGER

Further to our press release of 25 September 2015 when we announced that Schlumberger had advised us that it would not be extending the Long Stop Date after 30 September 2015, we can now confirm that the long stop date has expired and the proposed merger and related transaction with Schlumberger will not occur.

Schlumberger and EDC have a long standing relationship and strategic partnership in the provision of oilfield services to our mutual customers in Russia and the CIS. Both parties are continuing to work closely together under the existing five year Strategy Alliance Agreement signed in April 2011.

Our GDRs (EDCL.IL) will continue to trade on the London Stock Exchange and our depositary bank, The Bank of New York Mellon, will be reopening the books on October 1 2015 for deposit or withdrawal of our GDRs, which had been closed while the proposed transaction was pending.

With respect to EDC's strategy going forward, we are considering all options to support the Company's growth and development.

In the interest of bringing investors and analysts up to date after nine months of the pending transaction, we are providing some key financial and operational data as of August YTD 2015 with the caveat that all data is unaudited.

FINANCIAL UPDATE as of August YTD 2015

• Top line revenue US $1,217 million, 57% lower than August YTD 2014;

• The average exchange rateAugust YTD2015 was 59.4 Rubles per US Dollar compared to 35.3 Rubles per US Dollar during the corresponding period of 2014;
• • EBITDA was US $317 million, 46% lower than August YTD 1H 2014;
  • EBITDA margin was 26.1% compared to EBITDA margin of 27.8% August YTD 2014;
  • Net income was US $143 million, 50% lower than August YTD 2014;
  • Capital expenditure was US $ 144 million August YTD;

OPERATIONAL UPDATE as of August YTD 2015

• EDC drilled 3.152 million metresAugust YTD2015, 18.5% belowAugust YTD 2014;
• Horizontal metres drilledAugust YTD2015 were up 41% comparedAugust YTD2014 and accounted for 37% of total metres drilled, versus 22% inAugust YTD2014;
• Exploration drilling volumes were flatAugust YTD2015 versusAugust YTD2014;
• The share of our largest customer, LUKOIL, decreased to 55% of our total metres drilled August YTD 2015, as compared to 62% August YTD 2014;
• The share of GAZPROMNEFT, our second largest customer, increased to 34% of our total metres drilled August YTD 2015, as compared to 20% August YTD 2014;
• The share of ROSNEFT decreased to 1% of our total metres drilled August YTD 2015, as compared to 9.5% August YTD 2014;
• Our drilling crews are down 10% and rig moving crews down 22% period-over-period;
• Our market share was approximately 21% based on metres drilled onshore in RussiaAugust YTD2015. This 7 percentage point drop was due to significant reduction in Lukoil's activity against growth in the rest of the market;

• ASTRA,SATURNandNEPTUNEjack-up rigs were active through August YTD 2015;

• MERCURYwas idle though August YTD 2015

Enquiries: