OREANDA-NEWS. April 15, 2010. Bashneft reported the results of an oil reserve audit performed by world-renowned independent auditor for hydrocarbon reserves, Miller & Lents. The reserves were audited as of 31 March and 31 December 2009. This is the first time the company has audited its crude reserves in 12 years, this factor alone has certainly taken a toll on its information transparency.

Bashneft audited proven oil reserves according to PRMS as of 31 December 2009 total 1.26 billion barrels. Reserve-to-production ratio is nearly 15 years, slightly smaller than the industry average. Together, company P1+P2+P3 reserves total 2.13 billion barrels; moreover, the respective figures as of year-end are higher than these on March 31.

We believe the audit results should help Bashneft attract foreign investors. As the PRMS standard is internationally recognized, foreign investors should revise downwards their valuations for Bashneft investment risks. This could spur additional demand for company shares and cause an upturn in its stock valuations.