In 2010, Alliance Oil Company Ltd’s total oil reserves increased by 29.2 per cent to 978.8 million barrels (757.4 million barrels). The company added net proved and probable (2P) oil reserves of 112.3 million barrels (net of 16.0 million barrels produced in 2010) through exploration and development as well as reserve revisions. 2P reserves increased to 638.3 million barrels as of December 31, 2010 from 525.9 million barrels as of December 31, 2009. The increase in 2P reserves represents an internal reserve replacement ratio of 803.8 per cent of the total 2010 oil production.
The Timano-Pechora region accounted for the main increases in the company’s oil reserves. The region’s growth was driven by substantial exploration and development works at the Kolvinskoye field, where total reserves (3P) increased by 330.4 million to 518.6 million barrels. The Kolvinskoye field’s 2P reserves increased from 153.8 million barrels to 239.3 million barrels. The Volga-Urals and Kazakhstan contributed 35.0 million barrels to the company’s 2P reserve growth.
“Unprecedented organic reserve additions in 2010 were the result of our consistent development program with successful exploration activities in all regions and primarily in Timano-Pechora. New reserves provide the basis for long term production growth above and beyond the 2012 target of 90,000 barrels per day. This year the Company plans to drill four new 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, 2010:
| PRMS Classification | |||
| '000 bbl | 1P | 2P | 3P |
| Tomsk region oil fields | 14 865 | 56 105 | 61 589 |
| Timano-Pechora region oil fields | 155 332 | 394 757 | 718 587 |
| Volga-Urals region oil fields | 106 080 | 171 480 | 181 011 |
| Kazakhstan oil fields | 10 138 | 15 922 | 17 658 |
| Total oil reserves | 286 415 | 638 264 | 978 845 |
1P = Proven reserves, 2P = Proven and Probable reserves, 3P = Proven, Probable and Possible reserves
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 8 611 49 90
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 638 million barrels, 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.
