NOVATEK Reports Strong Proven Reserves Growth

                NOVATEK Reports Strong Proven Reserves Growth

PR Newswire

MOSCOW, Feb. 21, 2013

MOSCOW, Feb. 21, 2013 /PRNewswire/ --OAO NOVATEK ("NOVATEK" 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 2012.

Total SEC proved reserves, including the Company's proportionate share in
joint ventures, increased by 32% as compared to year-end 2011 and amounted to
12,394 million barrels of oil equivalent (boe). NOVATEK added 3.4 billion boe
of proved reserves under the SEC reserves reporting standards, inclusive of
2012 production, and recorded a more than eight-fold (842%) reserve
replacement rate. Total proved reserves of natural gas increased to 1,758
billion cubic meters (bcm) or by 493 bcm, inclusive of 2012 production. At
year-end 2012, the Company's reserve to production ratio (or R/P ratio)
increased from 25 years in 2011 to 31 years.

Under the PRMS reserves reporting methodology, the Company's total proved
reserves increased by 38% or by 4,665 million boe, inclusive of 2012
production, and amounted to 15,597 million boe. Total proved plus probable
reserves increased by 45% to 22,355 million boe, including an increase of
natural gas reserves by 1,054 bcm, inclusive of 2012 production, to 3,106 bcm.

The increase in all reserve categories was mainly due to successful
exploration at the Company's fields, production drilling, the inclusion of
Salmanovskoye (Utrennee) and Geofizicheskoye fields acquired in 2011 into the
reserve appraisal, as well as the acquisition of a 49% equity stake in ZAO
Nortgas, which holds the license for the North-Urengoyskoye field.

Natural gas reserves, bcm


                          2012  2011  2010  2009  2008
Proved               SEC  1,758 1,321 1,144 967   690
Proved               PRMS 2,195 1,585 1,310 1,080 734
Proved plus Probable PRMS 3,106 2,108 1,840 1,462 1,017

Liquids reserves, mmt


                          2012 2011 2010 2009 2008
Proved               SEC  106  91   73   63   55
Proved               PRMS 149  118  93   79   67
Proved plus Probable PRMS 247  199  166  124  104

Total reserves, mm boe


                          2012   2011   2010   2009   2008
Proved               SEC  12,394 9,393  8,088  6,853  4,963
Proved               PRMS 15,597 11,337 9,325  7,711  5,354
Proved plus Probable PRMS 22,355 15,409 13,386 10,589 7,498

Notes:

The Company's 2012 net proved reserves include the reserves of the
East-Tarkosalinskoye, Khancheyskoye, North-Khancheyskoye, North-Russkoye,
Yurkharovskoye, West-Yurkharovskoye, Salmanovskoye (Utrennee) and
Geofizicheskoye 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, Beregovoye,
Khadyryakhinskoye, Pyreinoye, North-Chaselskoye and Yaro-Yakhinskoye fields,
Yevo-Yakhinskiy, Samburgskiy and North-Urengoyskiy license areas according to
NOVATEK's shareholdings in the joint ventures.

In 2012, marketable production at the appraised fields amounted to
approximately 405 million boe, whereas total gross production for all fields
aggregated approximately 411 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.

Information provided in this press release presents expected results of OAO
NOVATEK operations in 2012. 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 2012. 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.

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".

SOURCE OAO NOVATEK

Website: http://novatek.ru/en/
Contact: David Sowells, +1- 202-701-9005
 
Press spacebar to pause and continue. Press esc to stop.