OREANDA-NEWS. On May 26, 2008 The Board of Directors of OAO Tatneft held its regular meeting in Kazan where it discussed Company's operation relsuts for the first quarter of 2008, the progress of its projects which are being under way outside Tatarstan within the Russian Federation and abroad, preparation for the 2007 results annual shareholders meeting, and a number of other business related issues of the Company, reported the press-centre of Tatneft.

The Board of Directors reviewed the budget performance for the first four months of 2008 as well as approved the one for June 2008.

The OAO Tatneft 1Q2008 financial and economic performance results were considered at the meeting. Company's output for the period under report totaled 6,5 mln tonnes of crude oil that is up 1,3% against the previous year's level.

45% of Company's production was yielded due to EOR application. 3,2 bln roubles were invested in the production expansion that is up 27% over the previous year's corresponding period. Crude oil sales earned 93 bln roubles. Profit before interest and tax amounted to 12,4 bln roubles.

Realizing the Heavy Oil and Bitumen Development Program over the period under report the Company produced 3,5 thousand tonnes of extra-viscous oil from the Ashalchinsky field with the total production of 10,5 thousand tonnes since the beginning of the pilot operations.

The progress of the Tatneft projects, which are moving ahead in Russia outside Tatarstan and abroad as well, was reviewed at the board meeting. Tatneft carries out hydrocarbon exploration and production activities in five regions in the Russian Federation outside Tatarstan. The C1 category recoverable reserves of oil and condensate attributable to these areas are estimated at 67 mln tonnes.

Crude oil recovered there in 2007 accounted for 196 thousand tonnes, and this year the Company expects to raise its oil output as high as 320 thousand tonnes. Internationally, Tatneft conducts exploration operations in five contract areas with four areas in Libya and one in Syria.

The 2007 Company audit results done by ZAO Energy Consulting/Audit and
the OAO Tatneft  Audit Commission were reported at the board meeting.
The draft OAO Tatneft business report of the Board of directors for 2007 was discussed at the meeting.

The Board approved Company's reporting documentation including its financial statements submitted for approval by the general shareholders meeting. The member of the Board, the OAO Tatneft General Director Shafagat F. Takhautdinov was assigned to present the annual business report at the upcoming shareholders meeting.

In addition, the Board approved the draft procedure for the 2007 OAO Tatneft business results general shareholders meeting.

The Board of Directors approved key principles and structure to create a united web-portal of the Tatneft Group.

The board meeting addressed a number of other issues related to Tatneft's business activity.