OREANDA-NEWS. May 29, 2012. NK RussNeft Board of Directors meeting was held yesterday to review the holding’s performance in Q1 2012 and the agenda of the General annual meeting of the shareholders of NK RussNeft.

NK RussNeft produced 4.558 million tons of oil in Q1 2012 which is 6.4% more tan in the same period of 2011. Along with that, the gas production by the holding’s enterprises reached 548.665 million cubic meters in Q1 2012 (+10.9% against Q1 2011).

As of the end of Q1 2012, the Company showed a positive dynamic in the main financial indicators. Thus, the revenue for the reporting period as per IFRS was USD  1.400 billion which is 12.6% greater than that last year. OIBDA indicator increased 33.4% and amounted to USD  468 million. The debt of the Company decreased from USD  5.061 billion to USD  4.957 billion.

At the same time the Board of Directors emphasized that a number of the business plan indicators were not reached in the reporting period. In particular, oil production scheduled parameters deviation was registered which was due to absence of verification of the geological assumptions on a number of fields in KhMAO and Tomsk region as well as unfavorable weather conditions in Saratov and Ulyanovsk regions from December 2011 through March 2012.

In order to guarantee achievement of the target indicators, the Company had reviewed the program for geological engineering operations and drilling. Additional drilling was scheduled at Roslavlskoye, Zapadno-Varieganskoye, Novo-Aganskoye fields as well as in Saratov and Ulyanovsk regions. The taken measures increased the daily production as early as in May and laid down the foundation for implementation of the business plan within the strategy of the holding development in 2012 approved by the Board of Directors.

The Board of Directors of the holding also approved the agenda and date for the General annual meeting of the shareholders as well as reviewed a number of other mandatory issues.