Russia: NOVATEK Reports Strong Proven Reserves Growth

 NOVATEK Reports Strong Proven Reserves Growth

OAO NOVATEK 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.
LNG World News Staff, February 22, 2013; Image: Novatek