29th Jan 2015 12:16
NOVATEK ANNOUNCES YEAR-END 2014 RESERVES
Moscow, 29 January 2015. 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 2014.
Total SEC proved reserves, including the Company’s proportionate share in joint ventures, aggregated 12,578 million barrels of oil equivalent (boe), including 1,747 billion cubic meters (bcm) of natural gas and 135 million metric tons (mmt) of liquid hydrocarbons. In 2014, NOVATEK increased the proved reserves by three-tenths of one percent (0.3%) and recorded a reserve replacement rate of 109%.
The reserves growth during the reporting period was affected by the disposal of the Company’s share of 4.9% in SeverEnergia. Excluding this effect, the proved reserves grew by 2%, with an organic reserve replacement of 152% due to successful exploration works and drilling, what is equal to reserves addition of 733 million boe, inclusive of 2014 production.
At year-end 2014, the Company’s reserve to production ratio (or R/P ratio) was 28 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 22,886 million boe, including 3,122 bcm of natural gas and 293 mmt of liquid hydrocarbons.
Natural gas reserves, bcm
| 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||
| Proved | SEC | 1,747 | 1,740 | 1,758 | 1,321 | 1,144 | |||||||
| Proved plus Probable | PRMS | 3,122 | 3,125 | 3,106 | 2,108 | 1,840 | |||||||
Liquids reserves, mmt
| 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||
| Proved | SEC | 135 | 134 | 106 | 91 | 73 | |||||||
| Proved plus Probable | PRMS | 293 | 314 | 247 | 199 | 166 | |||||||
Total reserves, mm boe
| 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||
| Proved | SEC | 12,578 | 12,537 | 12,394 | 9,393 | 8,088 | |||||||
| Proved plus Probable | PRMS | 22,886 | 23,085 | 22,355 | 15,409 | 13,386 | |||||||
Notes:
The Company’s 2014 net proved reserves include the reserves of the East-Tarkosalinskoye, Khancheyskoye, North-Khancheyskoye+Khadyryakhinskoye, North-Russkoye, Yurkharovskoye, 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, 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 2014, marketable production at the appraised fields amounted to approximately 457 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 2014. 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 2014. 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 | ||
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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 Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol «NVTK».
Copyright Business Wire 2015
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