Timano-Pechora Region

The Timano-Pechora region, located north of the Ural mountains by the Barents and Kara Sea, is a mature petroleum province, but also contains areas which have received relatively little exploration. The basin contains identified reserves of 9 billion barrels of oil. Alliance Oil entered the region in 2005, and holds four exploration and production licenses in the region: Middle Kharyaga, North Kharyaga, Lek-Kharyaga and Kolvinskoye.

Alliance Oil's proven, probable and possible oil reserves in the region amount to 504.1 million barrels of oil, based on D&M's estimates as of December 31, 2009.

The group's oil fields are located within a large grazing area that local communities utilize for extensive reindeer herding and grazing. Out of the total area of 5.9 million ha, the oil fields occupy only approximately 260 ha of land which are leased from these farm communities. The development and operation of oil fields has not had any significant adverse impacts on the local communities. The nearest permanent settlement to the oil field facilities is 70 km distant.

Update Q1 2010

Total production in the Timano-Pechora region for the first quarter 2010 was 1,103,197 barrels (1,309,097 barrels) .