4th Jul 2006 13:01
O.A.O. Tatneft04 July 2006 On June 30, 2006, OAO Tatneft issued the following press-release: On the main results of activities of OAO Tatneft in 2005 / For the Annual Shareholders Meeting of OAO Tatneft June 30, 2006, Almetyevsk, Tatarstan. The report of the Board of Directors of OAO Tatneft (the "Company") on financialand commercial activities of the Company was presented in the report of ShafagatF. Takhautdinov, the General Director of the Company. The Company produced 25 332 thousands tons of crude oil in 2005. Research and exploration works were conducted in Tatarstan, as well as in otherregions, such as Kalmykiya, Orenburg, Samara and Ulyanovsk regions. The volumeof research and exploration drilling exceeded 50 thousand meters of rock. 383 production and 249 injector wells were put in operation. The average debitof wells was increased up to 7.7 tons per day due to employment of the mostmodern technology for construction of wells. According to the report of Miller and Lents, Ltd., independent international oiland gas consultants, as of January 1, 2006, proved reserves of the Company were821.4 million tons. The market capitalization of the Company as of December 31, 2005 reached USD7.5billion (USD3 billion in 2004). Profits of the Company (before tax) was RR50.1 billion. More than RR2.3 billionwill be used for payment of dividends. The remaining part of the profits will beused for the development of production and strengthening of verticalintegration. By the end of 2005 the price of common shares of the Company in RTS reachedUSD3.45 which is 150% higher than in 2004. Main activities of the Company - oil and gas production and diversification, oiland gas refining, petrochemicals, sales of refined and petrochemical products. There are 553 Tatneft-branded petrol stations and complexes; more than 1 millionof refined products were sold through the retail network of the Company. In 2005, the Company paid particular attention to the improvement of corporategovernance. There are the following committees of the Board of Directors:corporate governance, audit, human resources and compensation and disclosurecommittees. Program for formation of the system of corporate governance standards of theCompany was developed. This Program provides, inter alia, mechanics ofcorporate control and risk management. The program for strengthening of the trademark and formation of unifiedcorporate style was commenced. In February 2006, the Board of Directors of theCompany approved new logo and trademark "Tatneft" as corporate brand. The Company followed the principles of corporate social responsibly byimplementing fifteen social-oriented programs. The environmental activities ofthe Company were conducted in compliance with requirements for environmentalsafety; works for the certification under environmental management standards ISO14001 were commenced. The Company prepared two reports for 2005: an annual report that includesfinancial results and non-financial report on social-economical, environmentaland innovation activities of the Company. The figures and activities disclosed in reports reflect in full the level ofCompany's responsibly before shareholders and investors, as well all otherinterested persons. Ernst & Young, an independent auditor, rendered an affirmative audit opinion onfinancial statements prepared in accordance with the Russian accountingstandards. Bureau Veritas Rus conducted independent verification of the socialresponsibility report. Forward-looking statements: This announcement may contain certainforward-looking statements of OAO Tatneft. OAO Tatneft does not guaranteeoccurrence of any events mentioned in such statements as well as term of theiroccurrence. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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