ROSN.L Regulatory News (ROSN)

26 Apr 2007 08:19

OJSC OC Rosneft26 April 2007 Rosneft announces total proved reserves exceeding 20 billion boe OJSC Rosneft (Rosneft) announced today the results of the annual independentaudit of its oil and gas reserves prepared by DeGolyer and MacNaughton.According to the results, in 2006, Rosneft became the world leader among publiccompanies in proved liquid hydrocarbon reserves under both SPE and SEClife-of-field classifications. According to the analysis prepared by DeGolyer and MacNaughton, as of December31, 2006, Rosneft had estimated net proved reserves of 20.089 billion barrels ofoil equivalent, which include 15.963 billion barrels (2.195 billion tonnes) ofoil and 24.758 trillion cubic feet (701 billion cubic meters) of gas accordingto the SPE classification. In 2006, proved hydrocarbon reserves grew 6.1% over2005, with oil and gas condensate reserves increasing by 7.3% and gas reservesincreasing by 1.5%. Reserve replacement including acquisitions was 273%, whileorganic hydrocarbon reserves replacement was 224%. Rosneft's hydrocarbon reservelife was 30 years - 27 years for oil and 51 years for gas. The increase in proved reserves was due primarily to further exploration anddevelopment of the fields at Yuganskneftegaz and the Vankor field, as well asthe acquisition of an effective 49.4% stake in Udmurtneft. Excludingacquisitions, Rosneft's proved reserves amounted to 19.765 billion barrels ofoil equivalent, which include 15.639 billion barrels (2.150 billion tonnes) ofoil and 24.758 trillion cubic feet (701 billion cubic meters) of gas. Rosneft's probable and possible reserves were estimated by DeGolyer andMacNaughton at 11.305 and 10.410 billion barrels of oil equivalent,respectively. These reserves include 8.758 billion barrels of oil and 15.284trillion cubic feet of gas of probable reserves and 7.827 billion barrels of oiland 15.493 trillion cubic feet of gas of possible reserves, according to the SPEclassification. The results of this audit confirm that Rosneft is the world's largest oilcompany in terms of oil and condensate reserves under the SPE classificationwhen compared to public companies. Rosneft's oil and gas reserves - SPE methodology As of December,31,2006 Oil Gas Oil + gas*-------------------- ---------- ------------ ------------ Billion barrels Trillion cubic feet Billion boe-------------------- ---------- ------------ ------------Proved reserves 15.963 24.758 20.089-------------------- ---------- ------------ ------------Probable reserves 8.758 15.284 11.305-------------------- ---------- ------------ ------------Possible reserves 7.827 15.493 10.410-------------------- ---------- ------------ ------------ *1 barrel of oil equivalent = 6,000 cubic feet of natural gas DeGolyer and MacNaughton also performed a reserve audit under the SEClife-of-field classification. Proved reserves were estimated at 13.001 billionbarrels of oil equivalent including 11.823 billion barrels (1.625 billiontonnes) of oil and 7.067 trillion cubic feet (200 billion cubic meters) of gas.The results of this audit confirm that Rosneft has become the world's largestpublic oil company in terms of liquid hydrocarbon reserves under the SEClife-of-field classification. Rosneft's oil and gas reserves - SEC life-of-field methodology As of December 31, 2006 Oil Gas Oil + gas*------------------- ---------- ----------- ------------ Billion barrels Trillion cubic feet Billion boe------------------- ---------- ----------- ------------Proved reserves 11.823 7.067 13.001------------------- ---------- ----------- ------------ *1 barrel of oil equivalent = 6,000 cubic feet of natural gas Rosneft's President, Mr. Sergey Bogdanchikov, commented: "The results of the D&M audit are another significant milestone in Rosneft'sdevelopment and confirm our company's leading position in the global oil and gassector. We are now focused on optimal development of our resource base and areaiming for industry leading growth to bring our production ranking among leadingoil companies in line with our ranking in reserves. We are confident that thebreadth and quality of our license portfolio, as confirmed by DeGolyer andMacNaughton, will lay the foundation for the best in class performance." Rosneft's total reserves in all categories comprise 100% of the reserves ownedby Rosneft's consolidated subsidiaries and Rosneft's net share of affiliates'reserves. These materials contain statements about future events and expectations, whichare forward-looking statements. Any statement contained in these materials thatis not a statement of historical fact is a forward-looking statement, and mayinvolve known and unknown risks, uncertainties and other facts which may causethe actual results, performance or achievements to be materially different fromany future results, performance or achievements expressed or implied by suchforward-looking statements. We do not undertake to update the informationcontained herein to reflect actual results, changes to initial assumptions orfactors affecting the forward-looking statements. For further information please contact: OJSC OC Rosneft Information Division +7 495 221-31-07 phone +7 495 411-54-21 fax n_manvelov@rosneft.ru OJSC OC Rosneft Investor Relations +7 495 221-35-55 phone a_bogdanchikov@rosneft.ru This information is provided by RNS The company news service from the London Stock Exchange