NVTK: OAO Novatek: NOVATEK begins share buyback program

  NVTK: OAO Novatek: NOVATEK begins share buyback program

UK Regulatory Announcement

MOSCOW

                     NOVATEK BEGINS SHARE BUYBACK PROGRAM

Moscow, 16 November 2012. OAO NOVATEK (“NOVATEK” or the “Company”) hereby
announces that today independent broker has begun to execute purchases of
ordinary shares of NOVATEK (the “Shares”) and Global Depositary Receipts
representing Shares (the “GDRs”, each GDR representing 10 Shares) on the open
market pursuant to the share buyback program (“Program”) approved by the
Company’s Board of Directors and announced on 7 June 2012.

The Company’s CFO and Board member Mark Gyetvay stated: “We have delivered
stellar financial and operational results throughout 2012 in accordance with
our Corporate Strategy, and have outlined a clearly articulated plan to
continue expanding our production base, our processing and transport assets,
and our hydrocarbon commercial activities, which, when implemented, will
continue our enviable proven track record of delivering sustainable growth in
2013 and beyond. The recent share price movement does not fully recognize our
strong business fundamentals and future growth prospects as well as properly
assessing the recent announcement of a major value accretive acquisition.
Accordingly, we have decided to allocate capital to our share buyback program
as previously announced and, effective today, we have begun the process of
purchasing our shares on the open market in accordance with rules and
regulations governing these types of transactions”.

Note

On 7 June 2012, the Company’s Board of Directors unanimously approved a
buyback program in respect of Shares and/or GDRs of NOVATEK in the aggregate
amount of up to 600 million US dollars. All purchases of Shares and/or GDRs
will be made by Novatek Equity (Cyprus) Limited, a wholly owned subsidiary of
the Company, which engaged a company within Sberbank group to act as an
independent broker to execute any purchases pursuant to the Program. The
purchases of Shares and/or GDRs may be executed during a twelve-month period
starting 7 June 2012. Any Shares and GDRs acquired pursuant to the Program may
be used for purposes of financing the Company’s operations or utilized in the
Company’s compensation and incentive program for management and key employees.
The Shares and GDRs so acquired will retain all rights, including right to
receive dividends.

                                     ***

For further information, please visit www.novatek.ru or contact:

Press Service      Investor Relations
+7 (495) 721 2207   +7 (495) 730 6013
press@novatek.ru    IR@novatek.ru


                                     ***

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 84%
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”.

Contact:

OAO Novatek
 
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