Reserves and resources

During 2014 Misen Energy AB (publ) completed works related to assessing and verifying the hydrocarbon reserves and resources allocated to the Joint Activity ("JA"). The independent global services and technology company AGR-TRACS International Consultancy Ltd. (Norway-Russia) was engaged by Misen Energy AB (publ) to prepare an independent Competent Persons Report (“CPR”) of the petroleum reserves and resources attributable to the subsidiaries Misen Enterprises AB and LLC Karpatygaz as parties of the JA.

The CPR is based on data as of 1 January 2013 and follows the specifications of the Amendment No.5 to the JAA No.3.

The CPR concluded the following net reserves attributable to the Misen Group for all projects included in the JA for the development period of 2013 – 2030:

Net Misen Group Reserves
                                                                      1P               2P  
Total gas reserves (bcm*)                          14.06          17.15
Total LPG reserves (MMbbls**)                   1.57            2.27
Total condensate reserves (MMbbls)          2.88            3.38

* billion cubic meters
**million barrels


Please note: Reserves are those quantities of petroleum, which are anticipated to be commercially recovered from known accumulations from a given date forward. There is uncertainty inherent in all calculations of reserves, which depend on completeness, and reliability of geological and engineering data. This uncertainty is expressed by the subdivision of reserves into proved and unproved.
Proved Reserves or 1P are those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government regulations.
The category 2P equals Proven Reserves + Probable Reserves. Probable Reserves are those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable.