OREANDA-NEWS. February 13, 2012. JSOC Bashneft has announced the results of an annual independent audit of the Company’s oil reserves conducted by Miller and Lents, Ltd. according to the international PRMS classification (Petroleum Resources Management System).

JSOC Bashneft oil reserves*, as of 31 December 2011

 

As of 31.12.2010

As of 31.12.2011

2011/2010

Total reserves, million barrels

2 947,2

2 986,3

1,3%

Proven reserves, million barrels

1 911,6

1 983,5

3,8%

Probable reserves, million barrels

410,0

420,3

2,5%

Proven and probable reserves, million barrels

2 321,6

2 403,8

3,5%

Possible reserves, million barrels

625,6

582,5

-6,9%

* - the barrel-ton conversion factor used for calculations is 7,12

According to the audit results, as of 31 December 2011, JSOC Bashneft’s proven reserves amount to 1 983.5 million barrels of oil, the replacement ratio of proven reserves is 167% and the Company has reserves-to-production ratio of 18.5 years.

As of 31 December 2011, according to the evaluation of Miller and Lents, Ltd., the Company’s probable and possible reserves according to PRMS classification amounted to 1 002.8 million barrels of oil, including probable reserves of 420.3 million barrels and possible reserves of 582.5 million barrels of oil.

In February 2011, JSOC Bashneft obtained a development license for a subsurface area including the Roman Trebs and Anatoly Titov oilfields in the Nenets Autonomous District. At present, extensive additional exploration is carried out at the above mentioned fields, including additional exploration drilling, coring, formation testing, 3D seismic surveying and additional testing of formerly drilled exploratory wells.

The company Miller and Lents, Ltd. evaluated prospective and contingent oil resources of JSOC Bashneft in the R. Trebs and A. Titov oilfields. The auditors assigned the 3С contingent resources to the project maturity sub-class Development Pending and estimated their volume at 548 million barrels; the amount of prospective resources was estimated at 46 million barrels.

The audit results have demonstrated that efficient geological exploration provides the Company with new reserves, which compensate for increasing production in the traditional production regions, stated Alexander Korsik, President of JSOC Bashneft. The auditors’ evaluation of resources at our new assets in Timano-Pechora is yet another step towards achieving the Company’s strategic goal of expanding the resource base and striking a balance between oil production and oil refining.

Note: according to the State Register of Reserves of the Russian Federation, as of 1 January 2009, the subsoil block of federal significance including the R. Trebs and A. Titov oilfields contained total C1 recoverable reserves amounting to 89.7 million tons, С2 reserves amounting to 50.3 million tons, as well as 59.3 million tons of C3 recoverable resources.