Press Releases

Alliance Oil Company adds 54.7 million barrels of proved and probable oil reserves

2010-02-08 08:35

In 2009, Alliance Oil Company Ltd added net proved and probable (2P) oil reserves of 54.7 million barrels through exploration and development as well as reserve revisions. The company's 2P reserves increased to 525.9 million barrels as of December 31, 2009 from 487.3 million barrels as of December 31, 2008. The increase in 2P reserves represents an internal reserve replacement ratio of 342 per cent of the total 2009 oil production. Including the possible category, total oil reserves (3P) increased by 25 per cent to 757.4 million barrels.

The Timano-Pechora region accounted for the main increases in the company's oil reserves. The region's growth was driven by successful exploration activities at the Lek-Kharyaga field, which resulted in a 148.3 million barrels 3P reserve increase in the field. This field now accounts for 192.0 million barrels 3P reserves. The Volga-Urals region's and Kazakhstan's oil fields also contributed to the company's reserve growth.

“We continue reviewing opportunities provided by the company's core production assets. Successful reserve additions in the Timano-Pechora region support our objective to focus on organic growth to double production by 2012. This year, the company will increase its exploration activities and plans to drill eight exploration wells in the Timano-Pechora and Volga-Urals regions,” says Arsen Idrisov, Managing Director of Alliance Oil Company.

Alliance Oil Company's reserves, as of December 31, 2009:
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 |                              |              PRMS Classification              |
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 | '000 bbl                     |   Proved |  Probable |  Possible |   Total 3P |
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 | Tomsk region oil fields      |   26 424 |    34 182 |     6 980 |     67 586 |
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 | Timano-Pechora region oil    |  139 406 |   165 511 |   199 164 |    504 081 |
 | fields                       |          |           |           |            |
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 | Volga-Urals region oil       |  101 546 |    45 443 |    25 318 |    172 307 |
 | fields                       |          |           |           |            |
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 | Kazakhstan oil fields        |    7 869 |     5 546 |           |     13 415 |
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 | Total oil reserves           |  275 245 |   250 682 |   231 462 |    757 389 |
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Alliance Oil's oil reserves have been revised following a recent independent reserve appraisal conducted by DeGolyer & MacNaughton, in accordance with the Society of Petroleum Engineer's Petroleum Resources Management System's (SPE PRMS) classification. DeGolyer & MacNaughton is a leading international petroleum consulting firm with an extensive reserve estimation practice in Russia.

For further information please contact:
Arsen Idrisov, Managing Director, Alliance Oil Company, Tel.: +7 495 777 18 08
Eric Forss, Chairman, Alliance Oil Company, Tel.: +46 8 613 00 85

Also visit www.allianceoilco.com

Alliance Oil Company Ltd is a leading independent oil company with vertically integrated operations in Russia and Kazakhstan. Alliance Oil has proved and probable oil reserves of 526 million barrels, oil production of approximately 42,000 barrels per day, refining capacity of 70,000 barrels per day and a network of gas stations and wholesale oil products terminals. Alliance Oil's depository receipts are traded on the Nasdaq OMX Nordic under the symbol AOIL.