Pjsc Tatneft Regulatory News (ATAD)

24 Mar 2006 11:57

O.A.O. Tatneft24 March 2006 March 24, 2006 On March 24, 2006, OAO Tatneft issued the following press release: OAO Tatneft announces its expectations with respect to the filing of its annualreport on Form 20-F for 2004 and a revision of its oil and gas reserves andfuture net revenues as of 1 January 2005 24 March 2006 - Almetyevsk OAO Tatneft (the "Company") announces that the audit of its consolidatedfinancial statements prepared under U.S. generally accepted accountingprinciples for the year ended 31 December 2004 (the "2004 U.S. GAAP FinancialStatements") is continuing and that it expects to publish the 2004 U.S. GAAPFinancial Statements and to file its annual report on Form 20-F for 2004 (the "20-F for 2004") with the U.S. Securities and Exchange Commission (the "SEC") by1 June 2006. Under applicable New York Stock Exchange ("NYSE") policy,* theNYSE is scheduled to assess, by 15 April 2006, the effect of the delayed filingof the 20-F for 2004 on the continuation of trading in the Company's AmericanDepositary Receipts on the NYSE. The Company intends to request in writing,prior to 15 April 2006, that the NYSE permit trading in the Company's securitieson the NYSE to continue beyond that date (this request may seek permission fortrading in the securities to continue up to an additional three months, until 15July 2006, pending filing of the 20-F for 2004 with the SEC). The finalization of the 2004 U.S. GAAP Financial Statements is taking longerthan previously announced principally because of the first time application ofcertain accounting standards (most notably FASB Interpretation No. 46,Consolidation of Variable Interest Entities) and the analysis required to beconducted by the Company relating to these standards, and post-31 December 2004changes in the composition of the Company's consolidated group. As announced earlier this year, the Company expects its 2005 unconsolidatedRussian Accounting Regulations revenues to be approximately 170 billion RussianRubles ($5.9 billion) and gross profit to be approximately 50 billion RussianRubles ($1.74 billion), compared to 2004 unconsolidated Russian AccountingRegulations revenues of approximately 150.8 billion Russian Rubles ($5.43billion) and gross profit of approximately 41.5 billion Russian rubles ($1.5billion).** The Company also announces a revision of its previously reported oil and gasreserves and future net revenues as of 1 January 2005, as estimated by Miller &Lents, Ltd., independent petroleum engineering consultants, and set out in theirreport dated 14 June 2005, furnished to the SEC on Form 6-K on 29 June 2005.The revision was required because of errors in the oil prices applicable to theCompany's oil sales in 2004, and in the Company's share in the production of tworelatively small oil fields in the Republic of Tatarstan, in each case used byMiller & Lents, Ltd. to evaluate the Company's oil and gas reserves and futurenet revenues as of 1 January 2005. Based on the revised report provided to the Company by Miller & Lents, Ltd., theCompany's total crude and condensate proved reserves as of 1 January 2005 were5,801.1 MMBbls (compared to the 5,962.5 MMBbls reported earlier) and its futurenet revenues discounted at the standard 10% rate were $11,831.2 million(compared to the $17,282.7 million reported earlier). These crude andcondensate proved reserves and discounted future net revenues assume renewal ofthe Company's licenses and production to end of the economic lives of thefields, as contemplated by Russian law; the revised report by Miller & Lents,Ltd. also includes revised information on the Company's proved reserves andfuture net revenues assuming production only to the expiration of the Company'slicenses. A copy of the revised Miller & Lents, Ltd. report is available on the Company'sweb-site (http://www.tatneft.ru/info.htm) and is being furnished to the SEC onForm 6-K. The Company has engaged Miller & Lents, Ltd. to estimate its oil andgas reserves and future net revenues as of 1 January 2006 and expects to obtaina report from Miller & Lents, Ltd. on such estimation by 30 June 2006. * - Section 802.01E of the NYSE Listed Company Manual as in effect on July 15,2005, which was the extended deadline for filing of the 20-F for 2004 inaccordance with Rule 12b-25 under the Securities Exchange Act of 1934. OnJanuary 19, 2006, the SEC approved an amendment to Section 802.01E of the ListedCompany Manual that altered the timing of the NYSE's review of continued tradingin listed securities of late filers. Based on the Company's consultations withthe NYSE, the Company takes the view that these amendments to Rule 802.01E donot apply to the 20-F for 2004. ** - Russian Ruble amounts have been translated into U.S. Dollars at therespective year-end exchange rates. Forward-looking statements: This press-release 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 Exchange