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37

NOVATEK announces year-end 2013 reserves

Moscow, 10 February 2014. OAO NOVATEK (“NOVATEK” and/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 2013.

NOVATEK announces year-end 2013 reserves NOVATEK announces year-end 2013 reserves

Moscow, 10 February 2014. OAO NOVATEK (“NOVATEK” and/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 2013.

 

Total SEC proved reserves, including the Company’s proportionate share in joint ventures, increased by 1.2% as compared to year-end 2012 and aggregated 12,537 million barrels of oil equivalent (boe). Proved gas reserves amounted to 1,740 billion cubic meters (bcm) and reserves of liquid hydrocarbons were estimated at 134 million metric tons (mmt). In 2013, NOVATEK added 582 million boe of proved reserves under the SEC reserves reporting standards, inclusive of 2013 production, and recorded a reserve replacement rate of 132%. At year-end 2013, the Company’s reserve to production ratio (or R/P ratio) was 29 years.

 

Proved reserves of liquid hydrocarbons increased by 26% as compared to year-end 2012. The ongoing field development at the Company’s SeverEnergia joint venture contributed a substantial proportion of this increase, with the successful exploration works at these fields contributing approximately 10 mmt of gas condensate to our overall proved reserves, based on our current ownership in this joint venture.

 

Under the PRMS reserves reporting methodology, the Company’s total proved plus probable reserves, including the Company’s proportionate share in joint ventures, increased by 730 million boe as compared to year-end 2012 and aggregated 23,085 million boe, including 3,125 bcm of natural gas and 314 mmt of liquid hydrocarbons.

 

Chairman of the Management Board of NOVATEK, Leonid V. Mikhelson stated “Our major achievements in 2013 with regards to reserve management were the full replacement of our proved reserves despite selling a 20% stake in the Yamal LNG project and divesting our 51% stake in Sibneftegas, as well as increasing the proportional share of liquid hydrocarbons in our reserve base, providing further support to our plans to increase the share of gas condensate and crude oil in our hydrocarbon production mix”.

 

Natural gas reserves, bcm

 

2013

2012

2011

2010

2009

Proved

SEC

1,740

1,758

1,321

1,144

 967

Proved plus Probable

PRMS

3,125

3,106

2,108

1,840

1,462

 

Liquids reserves, mmt

 

2013

2012

2011

2010

2009

Proved

SEC

134

106

 91

 73

 63

Proved plus Probable

PRMS

314

247

199

166

124

 

Total reserves, mm boe

 

2013

2012

2011

2010

2009

Proved

SEC

12,537

12,394

 9,393

 8,088

 6,853

Proved plus Probable

PRMS

23,085

22,355

15,409

13,386

10,589

Notes:

The Company’s 2013 net proved reserves include the reserves of the East-Tarkosalinskoye, Khancheyskoye, North-Khancheyskoye, North-Russkoye, Yurkharovskoye, West-Yurkharovskoye, Salmanovskoye (Utrennee), Geofizicheskoye and East-Tazovskoye 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, North-Chaselskoye and Yaro-Yakhinskoye fields, Yevo-Yakhinskiy, Samburgskiy and North-Urengoyskiy license areas according to NOVATEK’s shareholdings in the joint ventures.

In 2013, marketable production at the appraised fields amounted to approximately 439 million boe, whereas total gross production for all fields aggregated approximately 447 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.

Conversion factors:

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.

Source : Neftegaz.RU