Novatek reported on January 23, 2018, that independent petroleum engineers, DeGolyer & MacNaughton, have completed their comprehensive reserve appraisal of the company’s hydrocarbon reserves as of 31 December 2017.
Total SEC proved reserves, including the company’s proportionate share in joint ventures, aggregated 15,120 million barrels of oil equivalent (boe), including 2,098 billion cubic meters (bcm) of natural gas and 164 million metric tons (mmt) of liquid hydrocarbons. Total proved reserves increased by 12.8% compared to the year-end 2016, representing a reserve replacement rate of 435% for the year.
Novatek’s reserves were positively impacted by successful exploration works at the Utrennee, Kharbeyskoye, West-Yurkharovskoye and Urengoyskoye (Samburgskiy license area) fields, production drilling at the South-Tambeyskoye field, as well as the new licenses obtained through tender auctions (Gydanskoye, Verhnetiuteyskoye and West-Seyakhinskoye fields) and recent asset acquisitions (South-Khadyryakhinskoye, Syskonsynyinskoye fields and West-Yaroyakhinskiy license area).
Excluding the effect of obtaining new licenses, our total proved reserves increased by 1.3%, representing an organic reserve replacement rate of 134%.
At year-end 2017, the company’s reserve to production ratio (or R/P ratio) was 29 years.
Under the PRMS reserves reporting methodology, the company’s total proved plus probable reserves, including the company’s proportionate share in joint ventures, aggregated 28,471 million boe, including 3,879 bcm of natural gas and 366 mmt of liquid hydrocarbons.
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