Alliance Oil Company Ltd’s total oil reserves increased by 1.8% to 996.9 million barrels (978.8 million barrels). The Company replaced 153.6% of the total 2011 oil production by adding net proved and probable (2P) oil reserves of 9.6 million barrels (net of 17.9 million barrels produced in 2011) through exploration and development as well as reserve revisions. The Kolvinskoye oil field was the main driver in the Company’s oil reserve increase.
2P reserves increased to 647.9 million barrels as of December 31, 2011 from 638.3 million barrels as of December 31, 2010. Proved reserves (1P) increased by more than 8% year-on-year. The reserves-to-production ratio amounted to 36.2 years. At the Company’s largest field – the Kolvinskoye, 2P reserves increased from 239.3 to 253.3 million barrels and total reserves (3P) increased from 518.6 to 542.6 million barrels.
“In 2011, the upstream development program again resulted in organic reserve additions. At Kolvinskoye, 3P reserves have almost tripled since development started in 2008. The Company’s expanding assets provides the basis for long-term production growth and value creation. In 2012, the Company will continue its development efforts and also plans to drill 4 exploration wells in the Volga-Urals and Timano-Pechora regions,” says Arsen Idrisov, Managing Director of Alliance Oil Company.
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.