Reserves Evaluation

7 May 2008 07:00

O.A.O. Tatneft06 May 2008 7 May 2008 Based on the results of evaluation by Miller & Lents, Ltd. Tatneft's provedreserves of crude oil increased by 228 mln. barrels 7 May 2008 - Based on the results of evaluation by Miller & Lents, Ltd. (USA),independent international oil and gas consultants, conducted at the request ofOAO Tatneft ("Tatneft" or the "Company"), as of 1 January 2008 the reserves ofoil and gas of Tatneft under the SPE-WPC classification were as follows: Proved reserves of crude oil and condensate - 6 billion 139 million 700 thousandbarrels, which is 228 million barrels more than as of 1 January 2007; Probable reserves of crude oil and condensate - 2 billion 141 million 300thousand barrels, which is 146.9 million barrels more than as of 1 January 2007; Possible reserves of crude oil and condensate - 610.1 million barrels. The reserves of gas also increased and are comprised of: proved - 1,323.9 Bcf,probable - 452 Bcf, and possible - 43.3 Bcf. In 2007 Tatneft produced record volume of crude oil in the last 14 years - 25million 741 thousand metric tons (approximately 183.35 mln. barrels). Outside ofTatarstan the Nompany's subsidiaries produced approximately 196 thousand metrictons (1.4 million barrels) of crude oil. The increase in reserves of Tatneft is directly related to successfulapplication of modern technologies during crude oil and gas production,geographical expansion of the Company's activities as well as the commencementof development of highly viscous bitumen oil fields in the Republic ofTatarstan. Positive results of pilot production from Ashalchinsky and Mordovo-Karmalskyhighly viscous bitumen oil fields allowed to book as proved (under internationalstandards) a portion of the reserves of these fields (approximately 3.17 millionbarrels). Another 5.4 million and 258 million barrels of highly viscous bitumenoil reserves are booked as probable and possible respectively. The aggregate results of the evaluation by Miller & Lents, Ltd. of reserves andfuture net revenues of Tatneft as of 1 January 2008 are as follows: Net Reserves Future Net Revenues Crude and Gas, Bcf Undiscounted, Discounted at 10% Reserve Category Condensate, MM$ Per Year, MM$ MMBbls.Proved Developed Producing 3,750.7 817.5 90,472.9 31,566.5Proved Developed Nonproducing 2,153.7 469.5 57,483.2 5,524.0Proved Undeveloped 235.3 36.9 3,822.6 470.7Additional Capital and Property Taxes 0.0 0.0 -4,046.8 -2,036.1 Total Proved 6,139.7 1,323.9 147,731.9 35,525.1Probable 2,141.3 452.0 67,243.0 5,582.0Possible 610.1 43.3 7,054.3 747.5 Forward-looking statements: This announcement 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