10th Feb 2014 12:59
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.
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Information provided in this press release presents expected results of OAO NOVATEK operations in 2013. 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 2013. 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.
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For further information, please visit www.novatek.ru or contact:
Press Service Investor Relations
+7 (495) 721 2207 +7 (495) 730 6013
[email protected] [email protected]
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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 accounts for approximately 90% 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».
Copyright Business Wire 2014
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