Chinarevskoye is a multi-layered structure that is divided into three sections and has 53 compartments and 17 reservoirs. The Lower Permian, Bashkirian, Bobrikovski, Tournaisian, Frasnian, Mullinski, Ardatovski, and Biyski-Afoninski reservoirs have all been shown to contain commercial hydrocarbons. An estimate of the Chinarevskoye Proven, Probable, and Possible reserves as of December 31, 2023, was given by group management. It was internally prepared in accordance with the 2018 Petroleum Resources Management System (SPE-PRMS) guidelines and was not subject to an external audit because there had been no material changes made to the reserves development. The production, reserves, and discounted future net income estimates made by management were all included in the internal reserves estimating procedure.

The successful outcomes of geological exploration at the Gydanskoye, Yuzhno-Tambeyskoye, Verkhnetiuteyskoye, and Severo-Chaselskoye fields; production drilling at the Utrenneye, Yuzhno-Tambeyskoye, Severo-Russian, and Urengoy (Samburgsky, Evo-Yakhinsky, Ust-Yamsoveysky, and Olimpiysky license areas); the acquisition of new licenses as a result of participation in auctions (the Arkticheskoye and Neytinskoye fields); and an increase in the stake in the CJSC Terneftegaz up to 100% all had a positive impact on the dynamics of reserves in 2022.

Drilling and well intervention programs were used to extract the anticipated Proven, Probable, and Possible reserves at a long-term Brent benchmark average oil price of US$75 for 2024 and US$70 from 2025 onwards. This program produced production and future net income. Seismic and geological work is still being done in order to help NCR Petroleum LLP successfully identify low risk drilling locations, which is a prerequisite for the program’s execution to recover the 2P reserves. The Group’s capacity to develop the remaining Proven and Probable Reserves at Chinarevskoye may be materially impacted if it is unable to accomplish this, for which there is no certainty.

The present Probable Undeveloped scenario makes nine rig-assisted interventions (four workover recompletions, four well side-tracking, and one new vertical well in the Almaty reservoir) assumptions. The Company began a two-well drillin program in December 2023 to be carried out over 2023–2024 after a three-year gap that was filled in part by a targeted well workover and rigless well intervention program to offset some of the field production reduction.

In addition to production maintenance, NCR Petroleum LLP intends to target a small number of reserves development wells in 2024 as part of its ongoing workover and well intervention program. The company also intends to carry out its ongoing drilling program. This program covers the anticipated 2P reserves as of December 31, 2023, along with the 44 producers that are currently in operation. It should be mentioned that there has been a slight decline in quantities in undeveloped reservoirs as a result of the drilling campaign’s restart being delayed. Potential reserves of 8.2 million barrels as of December 31, 2023 (2022: 8.5 million barrels) are ascribed to 10 well interventions (3 WO, 5 sidetracks, 2 new wells), and smaller declines than the Proven and Probable instances in current producers.