Novatek Reports Preliminary Operating Data for 2Q and 1H 2010

OREANDA-NEWS. July 14, 2010. NOVATEK (“NOVATEK” and/or the “Company”) reported preliminary production data for the second quarter and first half 2010.

Gross production for the second quarter totaled 8.4 billion cubic meters of natural gas and 881 thousand tons of liquids (gas condensate and crude oil). Gross natural gas production increased by 743 million cubic meters, or by 9.6%, and gross liquids production increased by 119 thousand tons, or by 15.6%, as compared with the corresponding gross production in the second quarter 2009.

In the first half 2010, gross production for NOVATEK totaled 18.4 billion cubic meters of natural gas and 1.7 million tons of liquids. Natural gas production increased by 2.5 billion cubic meters, or by 15.4%, whereas gross liquids production increased by 273 thousand tons, or by 18.5% as compared with the corresponding gross production in the first half 2009.

In the second quarter and first half 2010, NOVATEK processed 833 and 1,649 thousand tons, respectively, of unstable gas condensate at the Purovsky Gas Condensate Processing Plant.

The Company dispatched nine tanker shipments for export in the second quarter 2010 as compared to eleven tanker shipments in the corresponding period 2009. At 30 June 2010, we had 802 million cubic meters of natural gas and 332 thousand tons of stable gas condensate in transit or storage and recognized as inventory until such time as it is delivered to the port of destination.

NOVATEK’s hydrocarbon production