OREANDA-NEWS. On August 28, 2007 the Meeting of the OAO TATNEFT Board of Directors chaired by the Prime Minister of the Republic of Tatarstan R.N. Minnikhanov was held in Kazan. The Board of Directors considered OAO TATNEFT's budget execution for seven months and approved the September budget of this year, reported the press-centre of OAO TATNEFT.

The Board summarized the OAO TATNEFT's financial and business activity of the Company for the first half of 2007. The Company produced about 13 million tons of crude oil accounting for 2,2 percent increase versus the first half of 2006. Over 45 per cent of the crude oil produced are accounted for by the application of the up-to-date enhanced oil recovery techniques. Comparison with the same period of the past year demonstrates 1,4 fold newly commissioned well flow rate grow, associated gas production rose by 100,5 per cent and broad fractions of light hydrocarbons (natural gas liquids) output grew by 5,7 per cent. The yield of Ashalchinskoye natural bitumen field pilot test operations amounted to 3 thousand tons of extra-viscous oil as of today. The first half a year of 2007 operation of the Company resulted in the balance sheet profit in the amount of 27,8 billion rubles.

The Board discussed the 2008 forecast of OAO Tatneft financial and business activities. With average weighted world oil price of $51 per barrel the Company targets to produce at least
25,4 million tons of crude oil and make the balance sheet profit at least as much as the expected one for 2007.

The efforts to increase the OAO TATNEFT market capitalization were reported to the Board of Directors. The Board reviewed the drivers contributing to the capitalization growth of the Company during the period of 2004-2006 (i.e. as high as 204,8 per cent) and the experience of other Russian peers. The OAO TATNEFT Executive Management Board was assigned to develop an appropriate framework of the market capitalization management and secure its efficient execution.

The Board considered the progress made in the implementation of new technologies for development and operation of OAO TATNEFT's fields, such as: cyclic water flooding method with filtration flow diversion, formation hydrofracturing, horizontal and multilateral drilling, underbalanced and balanced drilling, slim-hole drilling, sidetracking and horizontal lateral borehole drilling, radial drilling, dual completions, and others. Taking into account high efficiency of the technologies considered, the Executive Management Board was assigned to continue their implementation.

In addition, the Board of Directors also discussed a number of other issues related to the OAO Tatneft business operation.