In 2012, Novatek’s hydrocarbon reserves under SEC increase almost by a third

On Thursday, Novatek published its reserves data as of end of 2012. The company’s proved hydrocarbon reserves under SEC exceeded 12 billion barrels of oil equivalent, an increase by 32% for a year; the increase of proved reserves made up 3.4 billion barrels of oil equivalent, and reserve replacement ratio reached almost 850%.

As of end of 2012, the Novatek’s hydrocarbon reserves with the share in reserves of joint ventures under SEC made up 12.394 billion barrels of oil equivalent that is by 32% more than in 2011, the agency Prime transmits on Thursday, referring to the company’s report.

The increase of proved reserves (SEC) of the company, including the production in 2012, made up 3.4 billion barrels of oil equivalent, and the reserve replacement ratio reached 842%. At the same time, the volume of proved gas reserves, including the production of the previous year, grew to 1.758 trillion cubic meters – by 493 billion cubic meters. The Novatek’s years of hydrocarbon reserves grew to 31 years from 25 years as of end of 2011.

On results of 2012, the Novatek’s proved hydrocarbon reserves under PRMS made up 15.597 billion barrels of oil equivalent, increased by 38% (including the production of the last year). The company’s proved and possible reserves increased to 22.355 billion barrels of oil equivalent (+45%); the gas reserves made up 3.106 trillion cubic meters (including the extraction), increased 1.054 trillion cubic meters.

The increase of all categories of the company’s reserves is caused by the successful geological exploration, continuation of deposits drilling, inclusion of reserves of the Salmanovsk (Utrennee) and Geofizik deposits into the assessment (Novatek received licenses for them in 2011), as well as purchase of a share in Nortgaz last year – it owns license for the North Urengoi deposit.

As of end of 2012, the reserves assessment includes the East Tarkosalinsk, Khancheysk, North Khancheysk, North Russky, Yurkharovsk, West Yurkharovsk, Salmanovsk (Utrennee) and Geofizik deposits, Olympic and West Urengoi license areas, the license for development of which belong to the NOVATEK’s subsidiary and South Tambeysk, Thermokarst, Yarudeysk, Beregovoye, Khadyryakhinsky, Pyreinoye, North Chasel and Yaro-Yakhinsk deposits, Evo-Yakhinsk, Samburgsk and North Urengoi licensed areas, which reserves are taken into account in accordance with the company’s shares in joint ventures.

Last year, the commercial production at the deposits, included in the assessment, made up roughly 405 million barrels of oil equivalent. The total production at all company’s deposits made up about 411 million barrels of oil equivalent. According to the preliminary data, in 2012 the Novatek’s total production of natural gas reached 57.32 billion cubic meters (+7.1% as compared to 2011), and the production of liquid hydrocarbon – 4.287 million tons (+4%).

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Translated by Svetlana Kyrzhaly