NOVATEK

Legal Proceedings Report • Jan 26, 2016

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 9991M

OAO Novatek

26 January 2016

FOR IMMEDIATE RELEASE

NOVATEK Announces Year-End 2015 Reserves

Moscow, 26 January 2016. OAO NOVATEK ("NOVATEK" and/or the "Company") announced that independent petroleum engineers, DeGolyer & MacNaughton, have completed their comprehensive reserve appraisal of the Company's hydrocarbon reserves as of 31 December 2015.

Total SEC proved reserves, including the Company's proportionate share in joint ventures, aggregated 12,817 million barrels of oil equivalent (boe), including 1,775 billion cubic meters (bcm) of natural gas and 143 million metric tons (mmt) of liquid hydrocarbons. In 2015, NOVATEK increased the proved reserves by 1.4% and recorded a reserve replacement rate of 133%. On an organic basis (excluding the effect of lower share in the SeverEnergia joint venture) the reserve replacement rate amounted to 148%, which is equal to reserves addition of 774 million boe, inclusive of 2015 production.

At year-end 2015, the Company's reserve to production ratio (or R/P ratio) was 25 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 23,117 million boe, including 3,152 bcm of natural gas and 298 mmt of liquid hydrocarbons.

NOVATEK reserves according to international standards

	Proved reserves under the SEC methodology		Proved plus Probable reserves under the PRMS methodology
2014	2015	2014	2015
Natural gas, bcm	1,751	1,775	3,131	3,152
Liquid hydrocarbons, mmt	140	143	310	298
Total hydrocarbon reserves, million boe	12,643	12,817	23,069	23,117

Notes:

The Company's 2015 net proved reserves include the reserves of the East-Tarkosalinskoye, Khancheyskoye, North-Khancheyskoye+Khadyryakhinskoye, North-Russkoye, Yurkharovskoye, Yarudeyskoye, West-Yurkharovskoye, 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, North-Chaselskoye and Yaro-Yakhinskoye fields, Yevo-Yakhinskiy, Samburgskiy and North-Urengoyskiy license areas according to NOVATEK's shareholdings in the joint ventures.

The Yarudeyskoye field reserves are reflected on a 100% basis compared to the 51% share used earlier. Total reserves for 2014 have been amended accordingly.

In 2015, marketable production at the appraised fields amounted to approximately 522 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.

***

Information provided in this press release presents expected results of OAO NOVATEK operations in 2015. 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 2015. 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.

***

For further information, please visit www.novatek.ru or contact:

Press Service                                                             Investor Relations

+7 (495) 721 2207                                                     +7 (495) 730 6013

press@novatek.ru                                                      ir@novatek.ru

***

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 80% of Russia's gas production and approximately 16% 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 Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol «NVTK».

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCUNOKRNVAAURR