Analysts on YUKOS's proved reserves

An increase in the amount of proved oil and gas reserves of YUKOS is a positive sign only in the long term, NIKoil analysts believe. Russian producers have higher oil reserves compared to their foreign peers, and this factor is not a key one. In the medium term, the lack of transportation facilities will shadow growth in oil output, experts believe.

The increase in YUKOS's proved oil and gas reserves is due to their reclassifying, United Financial Group analysts believe. As oil prices have not moved from the last year levels, this revision might not have a significant impact.

Because of the ongoing conflict with the Natural Resources Ministry over some licensees, which can be withdrawn, YUKOS's reserves may return to their previous level or fall below it, some experts believe.

An independent oil engineering company, DeGolyer&MacNaughton, made its own estimates of YUKOS's reserves, following the US Securities and Exchange Commission and the Society of Petroleum Engineers (SPE) guidelines for reserves. As of December 31, YUKOS's proved oil, condensate, and natural gas liquid reserves increased at a 7.1 percent yearly pace to 14.7bn barrels under SPE definitions. Its gas reserves grew 2.1 percent to 225bn cubic meters.

Under SEC definitions, YUKOS's group proved oil, condensate, and natural gas liquid reserves increased at a 13.2 percent yearly pace to 11.833 bn barrels (1.620bn tons). Its gas reserves grew by 52.1 percent to 197bn cubic meters from 130bn cubic meters.

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