Sibneft Announces Results of Reserve Audit

Moscow, 11 June 2002; Sibneft's proven oil reserves remained steady at 4.65 billion barrels (644.4 million tonnes) last year despite a surge in production, according to an audit by oil and gas consultants Miller and Lents. Reserves were estimated in accordance with the standards of the Society of Petroleum Engineers and the World Petroleum Congress.

“The proven reserves category remained unchanged despite a rapid increase in production, in line with our reserve replacement policy,” said Sibneft president Eugene Shvidler. Output surged 20.2% last year to 408,000 barrels per day (20.67 million tonnes), and the company is this year targeting growth of 29.2% to 527,000 barrels per day (26.7 million tonnes).

Sibneft added to reserves through more extensive use of enhanced recovery methods, as well as by bringing new fields on stream. Sibneft plans to raise investment in exploration and production this year to $637 million from $448 million in 2001, including $366 million to be spent on the development of new fields.

A summary of the results of the audit follows in million barrels:

Category 1 January 2002 1 January 2001
Proven4,6464,644
Probable2,3602,086
Possible1,2691,546

Equivalent figures in million metric tonnes follow:

Category 1 January 2002 1 January 2001
Proven644.4644.1
Probable327.3289.3
Possible176.0214.5