OAO NOVATEK today said that it has added approximately 1,685 million barrels of oil equivalent (boe) of proved reserves under SECreserves reporting methodology, inclusive of 2011 production, and produced approximately 380 million boe during 2011.
Estimated total SEC proved reserves as of 31 December 2011 increased to 9,393 million boe from 8,088 million boe as of year-end 2010. Total proved reserves of natural gas increased from 1,144 billion cubic meters (bcm) in 2010 to 1,321 bcm in 2011, or by 230 bcm, inclusive of the Company’s 2011 production. The increase in proved reserves was mainly attributable to organic reserve growth, including development and exploration drilling at the Company’s fields as well as a 29% increase in our stake in the South-Tambeyskoye field.
In 2011, on a barrel of oil equivalent basis, NOVATEK recorded a more than four-fold (444%) reserve replacement rate for its appraised fields under the SEC standards, and at year-end 2011, the Company’s reserve to production ratio (or R/P ratio) was 25 years. The Company also recorded a more than four-fold (435%) reserve replacement rate for natural gas while the R/P ratio amounted to approximately 25 years.
Under the Petroleum Resources Management System (PRMS) reserves reporting methodology, the Company’s total proved reserves increased by 2,391 million boe, inclusive of 2011 production, and totaled 11,337 million boe, while proved plus probable reserves totaled 15,409 million boe as of 31 December 2011.