NOVATEK OAO : NOVATEK reports preliminary operating data for fourth quarter and full year 2011

12 January 2012

Moscow, 12 January 2012. OAO NOVATEK ("NOVATEK" and/or the "Company") today reported preliminary production data for the fourth quarter and full year 2011.

Gross production for the fourth quarter totaled 14.53 billion cubic meters of natural gas and 1,063 thousand tons of liquids (gas condensate and crude oil). Gross natural gas production increased by 3.64 billion cubic meters, or by 33.4%, and gross liquids production increased by 67 thousand tons, or by 6.7%, as compared with the corresponding gross production in the fourth quarter 2010.

In 2011, gross production for NOVATEK totaled 53.54 billion cubic meters of natural gas and 4,124 thousand tons of liquids. Natural gas production increased by 15.76 billion cubic meters, or by 41.7%, whereas liquids production increased by 492 thousand tons, or by 13.5% as compared with the corresponding gross production in 2010.

During 2011, NOVATEK processed 3,869 thousand tons of unstable de-ethanized gas condensate at the Purovsky Processing Plant, of which 984 thousand tons was processed in the fourth quarter.

The Company's preliminary stable gas condensate export volumes amounted to 2,981 thousand tons in 2011 as compared to 2,326 thousand tons in the corresponding period of 2010. At 31 December 2011, we had approximately 732 million cubic meters of natural gas and 228 thousand tons of stable gas condensate in transit or storage and recognized as inventory compared to 790 million cubic meters of natural gas and 264 thousand tons of stable gas condensate at 31 December 2010.

NOVATEK's hydrocarbon production

4Q2010	4Q2011	QoQ%	Gross production	2010	2011	YoY%
10.89	14.53	33.4%	Natural gas, bcm	37.78	53.54	41.7%
996	1,063	6.7%	Liquids, mt	3,632	4,124	13.5%

OAO NOVATEK is Russia's largest independent gas producer and the second-largest natural gas producer in Russia. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company's upstream activities are concentrated in the prolific Yamal-Nenets Autonomous Region, which is the world's largest natural gas producing area and accounts for approximately 83% of Russia's natural gas production and 16% of the world's gas production. NOVATEK is an open joint stock company established under the laws of the Russian Federation. The Company's shares are listed in Russia on MICEX-RTS Stock Exchange and the London Stock Exchange (LSE) under the ticker symbol 'NVTK' and on the NASDAQ PORTAL System as Rule 144A GDR under the ticker symbol "NVATY".