Gydan Peninsula License Areas

Licenses for the Geofizicheskoye and Salmanovskoye (Utrenneye) fields on the Gydan Peninsula were acquired in September 2011 and are valid through 2031.

The Salmanovskoye (Utrenneye) field, located in the northern part of the Gydan peninsula on the shores of the Gulf of Ob in close proximity to the South-Tambeyskoye field, was discovered in 1980. It is the largest field by recoverable reserves that has been found to date on the Gydan Peninsula. The field contains 34 hydrocarbon deposits, including 16 gas deposits, 15 gas condensate deposits, two oil and gas condensate deposits and one crude oil deposit. Proved reserves to SEC standards amounted to 259.8 bcm of natural gas and 9.6 mmt of liquid hydrocarbons as of 31 December 2014.

The Geofizicheskoye oil and gas condensate field, located in the middle part of the Gydan peninsula on the shores of the Gulf of Ob, was discovered in 1975 and contains 35 hydrocarbon deposits, including 19 gas deposits, 12 gas condensate deposits, three crude oil deposits and one crude oil and gas condensate deposit. Proved reserves to SEC standards amounted to 125.6 bcm of natural gas and 0.4 mmt of liquid hydrocarbons as of 31 December 2014.

In December 2014 “Arctic LNG 1” (the Company’s subsidiary) won an auction for exploration and production at the Trekhbugorniy license area located on the Gydan Peninsula and bordering the Company’s Geofizicheskiy license area. Estimated natural gas reserves of the Trekhbugorniy license area under the Russian C1+C2 reserve classification amount to 5.9 bcm, while the field’s broader recoverable resources classification exceed one (1) tcm of natural gas and 90 mln tons of liquid hydrocarbons.

In 2015, we continued full-scale exploration works at our license areas located on the Gydan Peninsula to properly assess the resource potential of this strategically important region. We conducted 3D seismic and exploration drilling works at the Utrenniy license area.