YUKOS Records Strong Reserve Replacement in 2003



YUKOS Oil Company announced that it replaced 338% of its production in 2003 and increased its proved oil and gas reserves to 16.0 billion barrels of oil equivalent on a SPE basis. On a SEC basis YUKOS replaced 420% of its production and increased its proved oil and gas reserves to 13.0 billion barrels of oil equivalent. Crude oil proved reserves life was 25 years on a SPE and 20 years on a SEC basis as of December 31, 2003.

"YUKOS' oil and gas reserves continue to be a competitive advantage for the company and will enable the company to remain the largest Russian oil producer. YUKOS' record high capital expenditures level during 2004 is targeted not only to meet our 90 million tons production target, but also to continue to maintain a high level of reserves replacement┬╗, said YUKOS' Chairman and CEO Simon Kukes.

DeGolyer and MacNaughton, YUKOS' independent petroleum engineering consultants, completed their appraisals of YUKOS' oil and gas reserves as of December 31, 2003 on both a Society of Petroleum Engineers (SPE) basis, as well as on a U.S. Securities and Exchange Commission (SEC) basis. Reserve information in this press release includes reserves recoverable up to as well as beyond the current license expiration dates as management believes that the licenses may be extended at the initiative of the company. Reserves numbers provided in this press-release do not include reserves of Sibneft Oil Company, a 92% - owned subsidiary of YUKOS.

On a SPE basis, YUKOS consolidated subsidiaries' crude oil, condensate and natural gas liquids net proved reserves were 2.014 billion metric tons (14.709 billion barrels) at the end of 2003 compared to 1.891 billion metric tons (13.734 billion barrels) at the end of 2002, an increase of approximately 7.1%. Net proved reserves of gas increased from 220 billion cubic meters (7.771 trillion cubic feet) at the end of 2002 to 225 billion cubic meters (7.936 trillion cubic feet) at the end of 2003, an increase of approximately 2.1%. On a BOE (barrels of oil equivalent) basis, YUKOS consolidated subsidiaries' oil and gas net proved reserves increased from 15.0 billion barrels at year-end 2002 to 16.0 billion barrels at year-end 2003.

Probable reserves of crude oil, condensate and natural gas liquids of YUKOS consolidated subsidiaries on a SPE basis were 0.979 billion metric tons (7.221 billion barrels) at the end of 2003 compared to 1.138 billion metric tons (8.263 billion barrels) at the end of 2002. The decrease in probable reserves is attributable to probable reserves moving into the proved category during 2003. Probable reserves of gas were 461 billion cubic meters (16.288 trillion cubic feet) at the end of 2003 compared to 250 billion cubic meters (8.840 trillion cubic feet) at the end of 2002. Possible reserves of crude oil, condensate and natural gas liquids on a SPE basis were 1.080 billion metric tons (8.031 billion barrels) at the end of 2003 compared to 0.910 billion metric tons (6.265 billion barrels) at the end of 2002. Possible reserves of gas were 641 billion cubic meters (22.639 trillion cubic feet) at the end of 2003 compared to 374 billion cubic meters (11.577 trillion cubic feet) at the end of 2002.

On a SEC basis, YUKOS consolidated subsidiaries' crude oil, condensate and natural gas liquids net proved reserves were 1.620 billion metric tons (11.833 billion barrels) at the end of 2003 compared to 1.438 billion metric tons (10.453 billion barrels) at the end of 2002, an increase of approximately 13.2%. Net proved reserves of gas increased from 130 billion cubic meters (4.579 trillion cubic feet) at the end of 2002 to 197 billion cubic meters (6.966 trillion cubic feet) at the end of 2003, an increase of approximately 52.1%. On a BOE (barrels of oil equivalent) basis, YUKOS consolidated subsidiaries' oil and gas net proved reserves increased from 11.2 billion barrels at year-end 2002 to 13.0 billion barrels at year-end 2003.
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