Increased oil reserves with further additions at Kolvinskoye

Alliance Oil Company Ltd 

16.02.2012 10:16

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In 2011, 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 Company's reserves, as of December 31, 2011:

                                     PRMS Classification   
                                 --------------------------
'000 bbl                             1P       2P       3P  
-----------------------------------------------------------
Tomsk region oil fields            28 779   57 361   62 849
-----------------------------------------------------------
Timano-Pechora region oil fields  166 907  408 986  743 085
-----------------------------------------------------------
Volga-Urals region oil fields     108 049  170 731  179 048
-----------------------------------------------------------
Kazakhstan oil fields              5 879    10 776   11 877
-----------------------------------------------------------
Total oil reserves                309 614  647 854  996 859
-----------------------------------------------------------

1P = Proven reserves, 2P = Proven and Probable reserves, 3P = Proven, Probable
and Possible reserves 



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. 



For further information please contact:
Arsen Idrisov, Managing Director, Alliance Oil Company, Tel.: +7 495 777 18 08
Eric Forss, Chairman, Alliance Oil Company, Tel.: +46 8 611 49 90



Also visit www.allianceoilco.com



Alliance Oil Company Ltd is a leading independent oil company with vertically
integrated operations in Russia and Kazakhstan. Alliance Oil has proved and
probable oil reserves of 648 million barrels and downstream operations that
include the Khabarovsk refinery and the leading network of gas stations and
wholesale oil products terminals in the Russian Far East. Alliance Oil's
depository receipts are traded on the Nasdaq OMX Nordic under the symbol AOIL.
News Source: NASDAQ OMX



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Language:     English
Company:      Alliance Oil Company Ltd
              
               
              Sweden
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         SE0000739286
WKN:          
 
End of Announcement                             DGAP News-Service
 
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