Bloomberg News

Novatek Buys Stakes in Russian Exploration Companies

August 06, 2007

OAO Novatek (NVTK), Russia's second-biggest gas producer, bought stakes in three companies with exploration licenses in the northern Yamalo-Nenets region.

Novatek bought 25 percent stakes in OOO Oiltechprodukt- Invest, OOO Petra Invest-M and OOO Tailiksneftegas, the company said in a statement distributed by Business Wire today. It didn't say how much it paid for the stakes. Novatek bought the stakes from United Capital Partners Group, the gas producer said in a later statement.

The three companies hold exploration licenses for six sites, known as Sredniy Chaselskiy, Severo Russkiy, Yuzhno- Zapolyarniy, Zapadno-Tazovskiy, Anomalniy and Severo- Yamsoveyskiy.

The combined license areas hold approximately 9 billion barrels of oil equivalent according to the C3 and D categories of the Russian reserve classification system, Novatek said. Russian classifications differ from western standards, such as those used by the U.S. Securities and Exchange Commission.

Novatek's wholly owned subsidiaries, Novatek- Tarkosaleneftegas and Novatek-Yurkharovneftegas, will operate the fields. Novatek also said it had secured the right to purchase an additional 25 percent of the license holders once they turn their exploration licenses into production licenses.

To contact the reporter on this story: Greg Walters in Moscow gwalters1@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net


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