storage & reservoir
According to the results of the audit performed by DeGolyer & MacNaughton under the REC (Russia Federation States Securities and Exchange Commission) life-of-field classification.
As of 2012, LLC Krasnodarneftegaz proven to have the storage capacities of 900 Billion capacities to store its refined fuel for any as part of its strategy to diversify its assets, LLC Krasnodarneftegaz is developing four gas condensate fields of the Saratovsko-Berkutovskoye group located in the south of Bashkortostan: the Podgornovskoye, Saratovskoye, Isimovskoye and Berkutovskoye fields. Currently, the Group is preparing the decision to develop these fields and is designing field facilities and gas transportation infrastructure.
According to Miller and Lents, as of December 31, 2014, possible reserves at the gas condensate fields forming part of the Saratovsko-Berkutovskoye group located in the south of Bashkortostan 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).
Reserves of Sorovskoe field in Khanty-Mansi Autonomous District
Miller and Lents has evaluated oil reserves at licence areas in the Khanty-Mansi Autonomous District owned by LLC Burneftegaz, which was acquired by LLC Krasnodarneftegaz 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. In 2013 and 2014 the Group conducted 3D seismic surveys covering 245 sq. km at the Berkutovskoye and Isimovskoye fields in order to define the boundaries of the deposits more precisely. In 2014 two appraisal and production wells were drilled, and data obtained through field seismic surveys were processed; data interpretation is expected to be completed in 2015.
Licensing For Exploration or Production
Under the Russian law, exploration or production of mineral resources is subject to an appropriate license. Such license is issued by competent authorities and it contains information about the subsoil block to be developed, about timelines, financial and other mineral use conditions. The Company holds a number of licenses issued by competent authorities for geological surveys, exploration and extraction of raw materials at oil and gas areas within the territory of the Russian Federation and its continental shelf. As of December 31, 2014, the Company holds 858 licenses, including 50 offshore licenses. In 2014, 28 new licenses were acquired. All license commitments are being honored. A massive exploration program was carried out on the Arctic and Far Eastern shelf. The discovery of an offshore field called Pobeda in the Kara Sea and acquisition of a license of federal significance, i.e. Minkhovskoye license area, contributed to the highest increment of gas reserves in absolute and percentage terms according to the Russian classification.
Reserves of the R. Trebs and A. Titov fields
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 LLC Krasnodarneftegaz share in the proved reserves (a 74.9% interest, 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 LLC Krasnodarneftegaz share in the total reserves of these fields totals 203.4 million barrels.