17th Dec 2010 11:30
NOVATEK ACQUIRES 51% INTEREST IN SIBNEFTEGAS
Moscow, 17 December 2010. OAO NOVATEK ("NOVATEK" and/or the "Company") announced today the closing of the transaction to acquire a 51% interest in OAO Sibneftegas ("Sibneftegas"), by the Company's wholly-owned subsidiary, OOO NOVATEK Severo-Zapad, from OAO Gazprombank. The acquisition price for the 51% interest amounted to RR 26,883 million.
In accordance with the terms of the share purchase agreement, the Company made an initial payment of RR 4,650 million, with the outstanding balance due by the end of 2011. In conjunction with the acquisition NOVATEK has refinanced 51% of Sibneftegas' total debt in an amount not exceeding RR 11,040 million.
Sibneftegas holds subsoil exploration and production licenses for the Beregovoye, Pyreinoye, and Zapadno-Zapolyarnoye fields and the Khadyryakhinskiy license area, which are located in the Yamal-Nenets Autonomous Region. The Beregovoye and Pyreinoye fields are currently engaged in commercial production of natural gas and produced 8.9 billion cubic meters in the first eleven months of 2010. The remaining field and license area are in the early stages of geological exploration.
Note:
Sibneftegas' proved reserves appraised by DeGolyer and MacNaughton under the PRMS reserves methodology as of 31 December 2009 totaled 290.4 billion cubic meters of natural gas and 1.7 million tons of liquid hydrocarbons.
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For further information, please visit www.novatek.ru or contact:
| Press Service +7 (495) 721 2207 | Investor Relations +7 (495) 730 6013 |
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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 is believed to account for approximately 83% of Russia's natural gas production and 16% of the world's gas production as of 2009. NOVATEK is an open joint stock company established under the laws of the Russian Federation. The Company's shares are listed on the Russian Trading System (RTS), MICEX Stock Exchange and the London Stock Exchange (LSE) under the ticker symbol 'NVTK' and on the NASDAQ PORTAL System as Rule 144A GDR under the ticker symbol "NVATY".
Copyright Business Wire 2010
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