OAO NGK Slavneft increased its proved oil reserves up to 1.188 bln barrels according to the SEC criteria
As of December 31, 2008, OAO NGK Slavneft audited proved oil reserves calculated according to the SEC (US Securities and Exchange Commission) method until termination of the licenses amounted to 1.188 mln barrels. As compared to 2007, the proved oil reserves increased by 163 mln bbl or 16%.
The reserves recovery rate (the ratio of proved recoverable reserves increment to 2008 production volume) made 209% according to the SEC standards.
As of the end of 2008, the Company’s total gas reserves according to the SEC standards (within the license validity period) amounted to 209 bln cubic feet and increased by 71 bln cubic feet or by 51% as against the indicators of the previous year.
The reserves increment according to the SEC criteria is caused by the high efficiency of the exploration works performed by the Company, application of up-to-date drilling and tailing-in methods as well as by the prolongation of licenses for the development of the Vatinsky, Mikhpaisky, Yuzhno-Agansky, Pokamasovsky and Severo-Ostrovnoy subsoil areas.
According to the audit report, as of January 1, 2009, the Company’s proved oil equivalent reserves amounted to 2.669 mln bbl under the SPE criteria, what is 141 mln bbl or 5% less as compared to 2007. The gas reserves (according to the SPE criteria) totaled to 462 bln cubic feet as compared to 495 bln cubic feet in 2007.
The reserves decrease under the SPE criteria is first of all caused by the slump in hydrocarbons prices and by the reduction of oil production volumes.
The audit of OAO NGK Salvneft reserves was performed according to the international standards by Miller&Lents, an American consulting company, which has been the Company’s permanent auditor since 1997.
In 2008, Slavneft’s reserves were evaluated according to the SРE and SEC criteria by 36 fields located in Western Siberian and Eastern Siberian oil and gas bearing provinces.