OREANDA-NEWS. On March 14, 2007 OAO NOVATEK announced that DeGolyer and MacNaughton (D&M) have completed their comprehensive reserve appraisals of the Company’s oil and gas reserves as of 31 December 2006. The Company added approximately 297 million barrels of oil equivalent (boe) of proved reserves under SEC1 standards, inclusive of 2006 production, and produced approximately 206 million boe2 for sale during the year.

Estimated total proved reserves as of 31 December 2006 increased to 4,664 million boe from 4,573 million boe as of year-end 2005. Total proved reserves of natural gas increased from 641 billion cubic meters (bcm) in 2005 to 651 bcm in 2006, an increase of 39 bcm, inclusive of 2006 production. Of significant importance was the growth in proved producing reserves of 929 million boe (not including production), or 35,4%, over 2005. In 2006, on a barrel of oil equivalent basis, NOVATEK replaced 144 percent of its production volumes from the appraised fields, or 190 percent over a three-year period (2004 to 2006), and at year-end 2006, the Company’s reserve to production ratio (or R/P ratio) is 23 years.

NOVATEK’s proved and probable reserves increased from 7,358 million boe at year-end 2005 to 7,445 million boe at year-end 2006. The Company’s estimated proved plus probable natural gas reserves, commonly referred to as “P2”, totalled 1,015 bcm in 2006 as compared to 1,006 bcm in 2005, while proved and probable liquids reserves increased by 4,8 million tons year-on-year.

The 2006 results are based on reserve appraisal reports for East-Tarkosalinskoye, Khancheyskoye, Yurkharovskoye, Termokarstovoye and Sterkhovoye fields.