Update on drilling campaign

Petrogrand AB 

23.05.2012 15:00

Dissemination of a Adhoc News, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

Strong indications of gas/condensate in well Zapadno-Ambarskya - 6

Stockholm, 2012-05-23 15:00 CEST (GLOBE NEWSWIRE) -- 

Update on drilling campaign

Strong indications of gas/condensate1 in well Zapadno-Ambarskya - 6

Well Zapadno-Ambarskaya - 6 in the Nizhnepaninsky license area

Petrogrand is pleased to report that the well Zapadno Ambarskaya-6 reached its
target depth on May 20th of 3 050 meters. Testing is expected to begin around
May 26-28 and the plan is to test 6-7 different levels mainly in the Jurassic.
One of the levels to be tested is an approximately 20 meters thick sandstone
reservoir with strong gas/condensate1 indications flowing to surface. The
sandstone reservoir has some clay layers interbedded. First indications are
very positive but further testing is required to determine the reservoir
quality and to establish if there are commercial amounts of hydrocarbons
(oil/gas) and if the reservoir can be produced. 

Well Yuzhno-Nazinskaya N - 232 in the Nizhnepaninsky license area

Testing is ongoing in well N-232 and we have finalized testing of five levels.
In J-6 (Jurassic) we have recovered oil combined with water to surface from an
approximately 10 meter thick sandstone reservoir. This result is very
interesting but needs further verification and evaluation. We continue our
testing in N-232 and depending on results a decision on drilling an appraisal
well will be taken during the autumn. Cores taken during the drilling operation
have been sent to third party for analysis. Results are expected during the
autumn. 

Well Ragozinskaya 3 in the Muromsky -2 license area

The well Ragozinskaya 3 continues to drill ahead and has reached a level of 2
460 meters of the total planned 2 600 meters. We expect to reach target depth
in the middle of June. 



1 Very light oil
News Source: NASDAQ OMX



23.05.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------------
 
Language:     English
Company:      Petrogrand AB
              
               
              Sweden
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         SE0001587593
WKN:          
 
End of Announcement                             DGAP News-Service
 
---------------------------------------------------------------------------