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'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.
