Alliance Oil Company's total oil production for the third quarter 2009 amounted
to 3.9 mbbl (42,500 bpd) compared to 4.0 mbbl (44,269 bpd) in the second quarter
2009. Preliminary refining volumes at the Khabarovsk refinery amounted to
5.9 mbbl (64,100 bpd) compared to 5.0 mbbl (55,394 bpd) in the second quarter
2009. The company's 2009 volume targets of 16 mbbl in upstream and 21 mbbl in
refining were confirmed.
2009 upstream capital expenditures will be increased by 24% to USD 72 million
following an increase in drilling activity. A successful exploration well was
drilled in the Lek Kharyaga field which is expected to result in a considerable
increase in the field's and the company's oil reserves.
Oil production in the Volga-Urals region totalled 1.8 mbbl compared to 1.8 mbbl
in the second quarter 2009. Oil production in the Timano-Pechora region totalled
1.1 mbbl versus 1.2 mbbl in the second quarter this year. Oil production in the
Tomsk region totalled 0.9 mbbl compared to 0.9 mbbl in the second quarter 2009.
Oil production in Kazakhstan totalled 0.1 mbbl versus 0.1 mbbl in the second
quarter this year.
The Khabarovsk refinery's run-rate increased to an average of 64,100 barrels per
day in the third quarter reflecting seasonal demand improvement for oil products
in core markets. Third quarter preliminary oil product sales amounted to
5.8 mbbl, of which approximately 32% were exported.
The company's upstream capital expenditures budget has been increased from USD
58 million to USD 72 million. Drilling activity was intensified in all regions
with the main focus on Timano-Pechora.
In Timano-Pechora, a successful exploration well was drilled at the Lek Kharyaga
oil field. The 4,096 meter well intersected the Sirachoy horizon of the upper
Devonian at the 3,333-3,426 meter interval. Open hole testing has been performed
and commercial oil rates have been acquired. Additional tests will be performed
on the well in the fourth quarter 2009.
The company expects that this successful exploration well will result in a
considerable increase in proven and probable reserves in the Lek Kharyaga field
and consequently in the company's reserves. Proven and probable reserves in the
field, as of December 31, 2008 amount to 35.5 million barrels. Drilling of two
production wells also started in the field.
In the Tomsk region, drilling started at the Khvoinoye oil field with one well
drilled and fractured and another one being drilled. In the Volga-Urals region,
drilling of one well started at Kovalevskoye oil field in Samara and two wells
were drilled at Stepnoozerskoye field in Tatarstan.
“Our operations benefited from the pricing environment in the third quarter.
Domestic crude oil prices stabilized after the May-June hikes while domestic
product prices continued to improve through the quarter. The refining volumes
followed the increased seasonal demand for light products. In the upstream
segment, we are intensifying drilling activity to enhance our reserves and
facilitate growth in the company's crude output next year” says Arsen Idrisov,
Managing Director of Alliance Oil Company.
Oil production of the company for the first nine months 2009 amounted to 12.2
mbbl (44,633 bdp), preliminary refining volumes at the Khabarovsk refinery for
the period totalled 16.2 mbbl (59,400 bpd) and preliminary oil product sales for
the period amounted to 15.7 mbbl.
For further information please contact:
Arsen Idrisov, Managing Director, Alliance Oil Company Ltd, tel. +7 495 777 18
08
Eric Forss, Chairman, Alliance Oil Company Ltd, 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 487 million barrels, oil production of approximately
42,500 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.
