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Theft of Bits

A thoroughly planned and well prepared sophisticated theft of Companys assets was committed in October 2009 in one of BKE subsidiaries. Some criminal offenders stole drill bits, very expensive and important component parts used in the process of drilling operations.

Notwithstanding a potential menace of such theft to our operations BKE managed to neutralize negative impact of the committed crime. However the Company will not leave this crime unpunished. Law enforcement bodies including police have initiated investigation activities. Additionally, BKE retained specialized organizations and offered a consideration to any individual, who would assist in investigation of the theft and disclosing the crime. We have disseminated information of the stolen equipment among manufacturers of drilling equipment, trading companies and drilling contractors.

Such impudent crime is detrimental not only to the Companys proprietary rights but also brings into being corrupt and venal practices in other companies operating in the industry. Such equipment may not be easily sold out of hand, and, therefore, the criminals will be forced to seek contacts with specialized companies.

Our Company in its practice does not encourage obtaining any short-run benefits that could be derived from any proposals made by dubious companies to the detriment of long-term relationships with reliable partners. Eventually both vendors and buyers benefit from such policy. We are ready to provide detailed information on the stolen equipment and theft method to all interested companies.

We are confident that the criminals will be punished and the measures taken by our Company will enable it to prevent such crimes in other subsidiaries.

22 October 2009
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OOO Burovaya Kompaniya Eurasia
40 bld. 2, Narodnogo Opolcheniya,
123298 Moscow, Russia

. +7 (495) 961 0252, f. +7 (495) 961 0255

E-mail: bke@bke.ru

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