MOSCOW, Feb. 21, 2013 /PRNewswire/ -- OAO NOVATEK ("NOVATEK" or the "Company"), today announced that independent petroleum engineers, DeGolyer & MacNaughton, have completed their comprehensive reserve appraisal of the Company's hydrocarbon reserves as of 31 December 2012.
Total SEC proved reserves, including the Company's proportionate share in joint ventures, increased by 32% as compared to year-end 2011 and amounted to 12,394 million barrels of oil equivalent (boe). NOVATEK added 3.4 billion boe of proved reserves under the SEC reserves reporting standards, inclusive of 2012 production, and recorded a more than eight-fold (842%) reserve replacement rate. Total proved reserves of natural gas increased to 1,758 billion cubic meters (bcm) or by 493 bcm, inclusive of 2012 production. At year-end 2012, the Company's reserve to production ratio (or R/P ratio) increased from 25 years in 2011 to 31 years.
Under the PRMS reserves reporting methodology, the Company's total proved reserves increased by 38% or by 4,665 million boe, inclusive of 2012 production, and amounted to 15,597 million boe. Total proved plus probable reserves increased by 45% to 22,355 million boe, including an increase of natural gas reserves by 1,054 bcm, inclusive of 2012 production, to 3,106 bcm.
The increase in all reserve categories was mainly due to successful exploration at the Company's fields, production drilling, the inclusion of Salmanovskoye (Utrennee) and Geofizicheskoye fields acquired in 2011 into the reserve appraisal, as well as the acquisition of a 49% equity stake in ZAO Nortgas, which holds the license for the North-Urengoyskoye field.
The Company's 2012 net proved reserves include the reserves of the East-Tarkosalinskoye, Khancheyskoye, North-Khancheyskoye, North-Russkoye, Yurkharovskoye, West-Yurkharovskoye, Salmanovskoye (Utrennee) and Geofizicheskoye fields, Olimpiyskiy and West-Urengoiskiy license areas, based on NOVATEK's 100% ownership interest, as well as the reserves of the South-Tambeyskoye, Termokarstovoye, Yarudeyskoye, Beregovoye, Khadyryakhinskoye, Pyreinoye, North-Chaselskoye and Yaro-Yakhinskoye fields, Yevo-Yakhinskiy, Samburgskiy and North-Urengoyskiy license areas according to NOVATEK's shareholdings in the joint ventures.
In 2012, marketable production at the appraised fields amounted to approximately 405 million boe, whereas total gross production for all fields aggregated approximately 411 million boe.
The reserve replacement rate is calculated by taking the difference between the opening balance of reserves and the ending balance of reserves plus production for the period and dividing the sum by production for the period.
1,000 cubic meters of gas equals 6.54 barrels of oil equivalent.
Liquids have been converted from tons to barrels using specific density factor for each field.
Information provided in this press release presents expected results of OAO NOVATEK operations in 2012. The information represents preliminary assessment only, which can be adjusted after statistical, financial, fiscal and business reporting becomes available. The information on OAO NOVATEK's operational results in this press release depends on many external factors and therefore, provided all permanent obligations imposed by the London Stock Exchange listing rules are unconditionally observed, cannot qualify for accuracy and completeness and should not be regarded as an invitation for investment. Therefore, the results and indicators actually achieved may significantly differ from any declared or forecasted results in 2012. OAO NOVATEK assumes no obligation (and expressly declares that it has no such obligation) to update or change any declarations concerning any future results, both due to new information obtained, any future events or for any other reasons.
OAO NOVATEK is Russia's largest independent gas producer and the second-largest natural gas producer in Russia. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company's upstream activities are concentrated in the prolific Yamal-Nenets Autonomous Region, which is the world's largest natural gas producing area and accounts for approximately 84% of Russia's natural gas production and approximately 17% of the world's gas production. NOVATEK is an open joint stock company established under the laws of the Russian Federation. The Company's shares are listed in Russia on MICEX-RTS Stock Exchange and the London Stock Exchange (LSE) under the ticker symbol "NVTK".
SOURCE OAO NOVATEK
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