Pjsc Tatneft Regulatory News (ATAD)

13 Sep 2006 16:06

O.A.O. Tatneft13 September 2006 On September 13, 2006, OAO Tatneft issued the following press-release: OAO Tatneft announces expectations with respect to the filing of its annualreport on Form 20-F for 2005, preliminary unaudited financial information forthe year ended December 31, 2005 under U.S. GAAP, upward revision of estimatesof reserves and future net revenues, and designation of a "Certification Date"under its American Depositary Receipt Facility 13 September 2006 OAO Tatneft (the "Company") announced today that it expects the audit of itsfinancial statements for the year ended December 31, 2005 prepared pursuant toU.S. generally accepted accounting principles (U.S. GAAP) (the "2005 U.S. GAAPFinancial Statements") to be completed by the end of October 2006. Furthermore,the Company intends to file its annual report on Form 20-F for the same year(the "2005 20-F") with the U.S. Securities and Exchange Commission (the "SEC")shortly after that. Based on its preliminary 2005 U.S. GAAP Financial Statements, pendingfinalization of the financial statements (including, inter alia, analysis ofbanking entities (e.g. Bank ZENIT) which may need to be consolidated pursuant toFIN46 (Consolidation of Variable Interest Entities)) and completion of theiraudit, the Company expects its: • sales and other operating revenues and net income for the year ended December 31, 2005 under U.S. GAAP to be 300 bln and 33 bln Russian Rubles respectively (as compared to 206.8 bln Russian Rubles of sales and other operating revenues and 23.4 bln Russian Rubles of net income received by the Company under U.S. GAAP in 2004); • operating, exploration and selling, general and administrative expenses for 2005 under U.S. GAAP to rise to 45.4 bln, 1 bln and 19 bln Russian Rubles respectively (from 34 bln, 0.9 bln and 17 bln Russian Rubles in 2004 under U.S. GAAP respectively); • transportation costs under U.S. GAAP in 2005 to fall to 8.5 bln Russian Rubles from 9 bln Russian Rubles in 2004; • cost of purchased oil and refined products in 2005 under U.S. GAAP to rise to 50 bln Russian Rubles (as compared to 39 bln Russian Rubles in 2004); • lifting costs, general and administrative expenses and transportation costs relating to crude oil production in 2005 to be US$2.93, US$1.12 and US$1.17 per barrel of crude oil produced, respectively (as compared to lifting costs, general and administrative expenses and transportation costs relating to crude oil production in 2004 of US$2.48, US$1.13 and US$1.15 per barrel of crude oil produced, respectively); • short-term debt and long-term debt, excluding notes payable, under U.S. GAAP as of December 31, 2005 to decrease to 5.9 bln and 1.8 bln Russian Rubles respectively, from 18 bln and 9.5 bln Russian Rubles as of December 31, 2004 respectively; and • interest expense in 2005 under U.S. GAAP to fall to 1.2 bln Russian Rubles (as compared to 1.4 bln Russian Rubles in 2004). The Company also announced today that Miller & Lents, Ltd., independentpetroleum engineering consultants, upon instructions from the Company, revisedtheir previously reported estimates of oil and gas reserves and future netrevenues of the Company as of 1 January 2006. The revision was triggered by anadjustment of the conversion rate used to convert barrels into tons and by theextension of the Company's production license for its largest Romashkinskoyefield announced by the Company on August 22, 2006(1), resulting in an upwardrevision of the reserves and future net revenues estimates. The revision doesnot affect any other previously issued reports by Miller & Lents, Ltd. relatingto the Company's oil and gas reserves. The Company will file the revised report by Miller & Lents, Ltd. on theCompany's oil and gas reserves and future net revenues as of 1 January 2006 asan annex to the 2005 20-F. The revised estimates of oil and gas reserves andfuture net revenues of the Company as of 1 January 2006 are set out below: Through the Economic Lives of Licensed Fields Net Reserves Future Net Revenues Reserve Category Crude and Gas, Undiscounted, Discounted at Condensate, Bcf MM$ 10% Per Year, MM$ MMBbls.Proved Developed Producing 3,598.1 885.1 38,993.3 15,018.0Proved Developed Nonproducing 2,010.8 494.7 19,776.4 3,253.4Proved Undeveloped 263.3 64.8 2,203.1 469.9Additional Capital and Property 0.0 0.0 -3,817.8 -1,632.9Taxes Total Proved 5,872.2 1,444.6 57,155.1 17,108.4Probable 2,226.7 547.8 39,562.5 4,929.6Possible 395.1 97.2 2,405.7 337.5 Through Current License Expirations Reserve Category Net Reserves Future Net Revenues Crude and Gas, Undiscounted, Discounted at Condensate, Bcf MM$ 10% Per Year, MM$ MMBbls.Proved Developed Producing 2,381.8 586.0 27,798.8 13,092.1Proved Developed Nonproducing 716.4 176.2 8,526.5 2,202.0Proved Undeveloped 68.5 16.9 588.7 279.5Additional Capital and Property 0.0 0.0 -1,108.5 -805.1Taxes Total Proved 3,166.7 779.0 35,805.5 14,768.4 * Columns may not total due to rounding Finally, the Company also announced today that it has designated October 30,2006 as a "Certification Date" pursuant to Section 4.12 of the Amended andRestated Deposit Agreement, dated as of July 10, 2006, between the Company, TheBank of New York, as Depositary (the "Depositary"), and owners and beneficialOwners of Global Depositary Receipts thereunder ("GDRs"). As a consequence, as noted in the Company's previous press releases, theordinary shares of the Company underlying all GDRs except those beneficiallyowned by persons who, on or before the Certification Date, (i) have certifiedthat they are not "resident in the United States" or (ii) have certified thatthey are "qualified institutional buyers" (or "QIBs") and have been approved bythe Company, will be sold by the Depositary outside the United States pursuantto Regulation S under the U.S. Securities Act of 1933, as amended, and, uponcompletion of those sales, the proceeds of those sales will be transferred tothe beneficial holders of such GDRs. The certification process will beadministered by the Depositary. Owners and beneficial owners of GDRs maywithdraw the ordinary shares of the Company evidenced by their GDRs at any timeprior to the earlier of the Certification Date and the date on which theyprovide to the Depositary the certification described above.(2) 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 or the time of theiroccurrence. -------------------------- (1) The extension of the Company's production license for Romashkinskoye fielduntil July 2038 became effective on August 4, 2006. (2) As noted in the Company's previous press-releases, a beneficial owner'scertification that he, she or it either (i) is not "resident in the UnitedStates" or (ii) is a QIB and requests permission to continue to hold GDRs willnot be effective unless the beneficial owner, together with the certification,deposits its GDR with the Depositary or transfers the relevant GDRs to a blockedaccount with The Depository Trust Company, in either case until after theCertification Date. The purpose of this requirement is to prevent beneficialowners that have either (i) certified non-U.S. residence or (ii) certified QIBstatus and requested permission to continue to hold GDRs from transferring theirGDRs to a person who is resident in the United States prior to the CertificationDate. This information is provided by RNS The company news service from the London Stock Exchange