JSOC Bashneft has announced the results of the latest independent audit of hydrocarbon reserves conducted by Miller and Lents, Ltd. in accordance with the PRMS classification (Petroleum Resources Management System).

The auditor has evaluated reserves at 190 oil and gas condensate fields of the Company in the Volga-Urals, West Siberian and Timan-Pechora oil and gas provinces, including part of reserves at the R. Trebs and A. Titov fields and the Sorovskoye field.

Total oil and condensate reserves of JSOC Bashneft as of December 31, 2014

* - the barrel-tonne conversion factor is 7.13

The audit findings revealed that by December 31, 2014, Bashneft's proved reserves had increased by 4.9% to 2,145.6 million barrels. In 2014 the reserve replacement ratio totalled 179.0%. The audit findings suggest that Bashneft's reserves-to-production ratio amounts to 16.9 years.

Overall, according to Miller and Lents, as of December 31, 2014, Bashneft's total probable and possible reserves amounted to 1,499.0 million barrels. Probable reserves increased by 23.5% to 653.1 million barrels of oil, while possible reserves added 27.6% and reached 845.9 million barrels. The audit has revealed that total reserves of liquid hydrocarbons gained 12.6% and reached 3,644.6 million barrels.

‘Development of new assets in Timan-Pechora and Western Siberia helped the Company to achieve a considerable increase in reserves in 2014,’ emphasized Mikhail Stavskiy, Bashneft's First Vice President for Upstream and Geology. ‘Nevertheless, once again growth of proved reserves was driven primarily by brownfields in Bashkortostan (accounting for about 55% of the increase), which proves the efficiency of our geological and engineering operations and the success of the geological exploration programme carried out in our key production region.’

Successful pilot development of the R. Trebs and A. Titov fields has enabled the auditor to revise their reserves upwards significantly. According to Miller and Lents, by December 31, 2014, proved oil reserves at the R. Trebs and A. Titov fields had almost quintupled, reaching 104.9 million barrels (with the barrel-tonne conversion factor amounting to 7.58), with Bashneft’s share in the proved reserves (a 74.9% interest in LLC Bashneft-Polyus, which got back its licence for a subsoil area in 2014) amounting to 78.5 million barrels.

The auditor has estimated total reserves (3P) of the R. Trebs and A. Titov fields as of December 31, 2014 at 271.7 million barrels, which is 3.3 times higher than the corresponding figure as of December 31, 2013. The audit findings show that Bashneft’s share in the total reserves of these fields totals 203.4 million barrels.

Miller and Lents has evaluated oil reserves at licence areas in the Khanty-Mansi Autonomous District owned by LLC Burneftegaz, which was acquired by Bashneft in March 2014. At the current stage of development, the auditor has assessed proved oil reserves at the Sorovskoye field as of December 31, 2014 at 38.3 million barrels (with the barrel-tonne conversion factor amounting to 7.51); probable reserves total 60.7 million barrels, while possible reserves amount to 131.1 million barrels. Total reserves (3P) at the Sorovskoye field have been estimated at 230.1 million barrels.

Miller and Lents has also confirmed its assessment of recoverable reserves of natural gas and condensate at four gas condensate fields of the Saratovsko-Berkutovskoye group in the Republic of Bashkortostan. According to Miller and Lents, as of December 31, 2014, possible reserves at the gas condensate fields forming part of the Saratovsko-Berkutovskoye group amounted to 874.8 billion cubic feet (24.8 billion cubic metres) of gas and 7.9 million barrels of condensate (the barrel-tonne conversion factor is 8.27).