Slavneft increased oil and gas reserves calculated under SEC criteria

Марта 18, 2011

As of December 31, 2010, the volume of the Slavneft’s audited proved oil reserves calculated under the Securities and Exchange Commission’s methods (SEC LOF) (excluding the licenses validity) amounted to 1,635.8 mln bbl. The Company's proved reserves volume increased by 152.1 mln bbl, or 10.3% as compared to 2009.

The Holding’s oil reserves replenishment ratio (relation of the recoverable proved oil reserves increment (286.7 mln bbl) to the oil volume produced in 2010 (134.6 mln bbl)) achieved 213% under the SEC standards.
ОАО NGK Slavneft’s cumulative proved gas reserves under the SEC LOF criteria increased by 3.9% (10.4 bln cft) as compared to the previous year and amounted to 274.8 bln cft.
By December 31, 2010, the Company’s total proved oil reserves volume under the SEC LE criteria (including the licenses validity) achieved 1,586.9 mln bbl having increased by 38.5% (441.4 mln bbl) against the previous year. The proved gas reserves under the SEC LE standards increased by 36.8% (71.8 bln cft) and amounted to 267.1 bln cft over the reporting period.
The hydrocarbon reserves increment under the SEC criteria is ensured by high efficiency of exploration performed by ОАО NGK Slavneft. In 2010, the Company managed to discover new hydrocarbon deposits at 27 license areas. Application of up-to-date drilling, penetration and enhanced oil recovery technologies, fulfillment of a wide scope of well work activities at the fields under development significantly encouraged the reserves increment as well. Besides, the 2010 increment is related to validity prolongation of the licenses for development of some subsoil areas in the Khanty-Mansi Autonomous Area – Yugra.
As of December 31, 2010, ОАО NGK Slavneft’s proved oil reserves under the PRMS criteria amounted to 7,384.5 mln bbl according to the independent audit data. They increased by 2,293.7 mln bbl, or 45.1% as against to the previous year. Over the period specified, the gas reserves under PRMS decreased by 6.5% and made 640.4 bln cft vs. 685.2 bln cft produced in 2009.
In 2010, the independent audit of ОАО NGK Slavneft’s hydrocarbon reserves was carried out at 38 fields, 36 of which are located in KhMAО-Yugra, 2 fields – in the Krasnoyarsk region.
The findings of ОАО NGK Slavneft’s oil and gas reserves audit for 2009-2010 are showed according to the opinions of DeGolyer and MacNonghton, an independent company. Within 1997-2009, Miller&Lents.Ltd, an American consulting company, was the permanent auditor of ОАО NGK Slavneft. In 2010, the shareholders recommended to ОАО NGK Slavneft to entrust DeGolyer and MacNonghton to conduct the audit of hydrocarbon reserves for convergence of the corporate accounting reporting.