Reserves and Exploration

Gazprom Neft has a strong resource base that expands each year through the intensification of geological exploration, the efficient development of the Company's fields, and the acquisition of new assets in Russia and abroad.

According to DeGolyer and MacNaughton independent reservoir engineers, the Company's proven and probable reserves as of the end of 2009 totalled 1.568 bln tons of hydrocarbons, which by SPE international standards makes the Company one of the top twenty largest oil companies worldwide.

Additions to Gazprom Neft's hydrocarbon reserves in 2009 totalled 97 million tonnes of oil equivalent due to increased exploration and improved reservoir management efficiency. New acquisitions added another 41 million tonnes of oil equivalent to the Company's resource portfolio.

The current reserves-to-production ratio of SPE proven hydrocarbons is more than 20 years, while replacement of the Company's reserves reached 265 per cent based on the 2009 results.

Licensing

As at the end of 2009, Gazprom Neft and its subsidiaries held 66 sub-soil licenses for areas located in nine Russian regions: Khanty-Mansyisk Autonomous District, Yamalo-Nenets Autonomous District, Nenets Autonomous District, Tyumen, Tomsk, Omsk, and Irkutsk regions, Krasnoyarsk Territory, and Krasnodar Territory. Most of the licenses grant the Company the right to hydrocarbon exploration and production for a period of 20 to 50 years.

The Priobskoye field in Khanty-Mansyisk Autonomous District, with 465 mln bbl of oil in reserves under SPE classification, is one of the Company's largest oil deposits . Full-scale development of the Priobskoye field started in 2004, and in 2009 the field was already producing 27.3 per cent of the Company's total output. The field is a key asset which is strategically important for the Company's long-term production growth.

A regional group of fields in the Omsk and Tomsk regions is the second prospective centre of production. Over the next five years, the Krapivinskoye field in the Omsk region, as well as the Archinskoye, Shinginskoye, and Urmanskoye fields acquired by the Company in the Tomsk region, will become the leading producers there.

Exploration

One of the Company's strategic goals is to intensify and improve exploration efficiency in order to expand the resource base. In 2009 the exploration drilling success rate was 90.9 per cent with efficiency of 561 tonnes of hydrocarbons per meter drilled. Tests of eleven exploration and appraisal wells were completed in Gazprom Neft Group license areas; ten of the wells yielded commercial hydrocarbon flows.

Exploratory drilling and additional exploration resulted in the discovery of the Nizhnevyngapurovskoye oil and gas condensate field and three new oil deposits at existing fields with total recoverable reserves of more than four million tonnes of oil.

Overall, additions to the Company's oil reserves in 2009 totalled 105.6 million tonnes, mainly from additional exploration at fields under development (65.9 million tonnes) and the reappraisal of reserves due to the revision of the geological models of the fields and oil recovery factors, primarily for the Priobskoye and Sutorminskoye fields (39.7 million tonnes).