Assam Company puts two wells on production

Kolkata - February 05, 2008: Assam Company today announced that the company has placed the Amguri 10B and Amguri 11 wells on production.

Gross production from the Amguri field is now able to average approximately 870 bbl/d of condensate and 7 million cu. ft. per day of natural gas or 2,040 barrels of oil equivalent per day. These wells were placed on production on January 29, 2008 and the gross production is being restricted to 585 bbl/d and 4.7 million cubic feet of natural gas per day or 1,370 barrels of oil equivalent per day. To alleviate these constraints, the consortium is constructing a new 10" gas pipeline with completion expected later this quarter, and increasing capacity at the Moran oil transfer station. With the elimination of these bottlenecks, further increase in production is anticipated.

At present, Amguri 11 is producing only from one of the three previously tested intervals.

"We are pleased to inform you about the production of the Amguri 10B and Amguri 11wells and we are expecting more positive developments with the upcoming programme planned for Amguri comprising of 10 well drilling program," commented Abhay Chawdhry, Director, Assam Company Limited.

The consortium has begun drilling operations at the Amguri 13 appraisal location on the Amguri Development block. This well shall be directionally drilled upto an approximate depth of 3,150 meters into the Barail formation. Amguri 13 is located in the northeast protion of the field near Amguri 1 well.

About Assam Company

Assam Company Ltd. incorporated in 1839 and is engaged in production, plantation and manufacturing of Tea. Assam Company is a pioneer among tea plantation companies in the world. It was granted the Royal Charter by Her Majesty Queen Victoria in 1845. It has diversified into exploration and development of oil and gas in FY06.. Assam Company's strategy is to expand and grow the revenue stream from the oil and gas business whilst continuing to maintain the cash flows from the tea business.

Assam Company is a producer of quality tea and its brands are sold worldwide. One of its tea estates, "Salonah", is listed as one of the world's largest tea gardens. The Company also produces the world famous White Tea, which is sold at USD 110 per kg along with organic teas. The Company holds a strong position with packers of quality tea in UK, Europe, Asia, Middle East, USA and Japan.

An associate company, Assam Railway & Trading Company (ARTC), was the first to discover oil in India at Digboi in Assam. Presently the Company is participating in four development blocks (Amguri, Laxmijan, Bihubar and Barsilla) and an exploration block (AA-ON#7). All these blocks are located in the Assam-Arakan basin in the north-eastern India.