Novatek Reports on 2009 Proved Reserves
Novatek reported that independent petroleum engineers, DeGolyer and MacNaughton (D&M), have completed their comprehensive reserve appraisals of the Company's oil and gas reserves as of December 31, 2009. The Company added approximately 2,127 million barrels of oil equivalent (boe) of proved reserves under SEC reserves reporting methodology (SEC standards), inclusive of 2009 production, and produced approximately 237 million boe during the year.
Estimated total proved reserves (according to SEC standards) as of December 31, 2009 increased to 6,853 million boe from 4,963 million boe as of year-end 2008. Total proved reserves of natural gas increased from 690 billion cubic meters (bcm) in 2008 to 967 bcm in 2009, an increase of 310 bcm, inclusive of the Company's 2009 production. The growth in proved reserves was mainly attributable to organic reserves growth through development drilling and the finding of new layers at the Yurkharovskoye field as well as the positive impact of the South Tambeyskoye field acquisition on the Company's total reserves base.
In 2009, on a barrel of oil equivalent basis, Novatek recorded an approximately nine-fold (898%) reserves replacement rate for its appraised fields under the SEC standards, and at year-end 2009, the Company’s reserve to production ratio (or R/P ratio) was 29 years. The Company also recorded a greater than nine-fold (958%) reserves replacement rate for natural gas while increasing the R/P ratio to approximately 30 years.
Under the Petroleum Resources Management System (PRMS4) reserves reporting methodology, the Company's total proved reserves increased by 2,594 million boe, inclusive of 2009 production, and totaled 7,711 million boe, while proved plus probable reserves totaled 10,589 million boe as of December 31, 2009.