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. Last Updated: 07/27/2016

Tatneft's 2004 Books Need More Time

VedomostiTatneft plans to ask the New York Stock Exchange to extend its results deadline, prompting fears it could be delisted.
Oil firm Tatneft said Friday that it had cut its oil reserves because of an accounting error and it would be late filing its 2004 U.S. GAAP results to the U.S. Securities and Exchange Commission.

Tatneft said it had revised its proven oil and gas condensate reserves as of Jan. 1, 2005, to 5.801 billion barrels, from the 5.963 billion barrels reported last June.

It said the figures prepared by Miller & Lents had to be corrected because of errors in the prices applicable to its 2004 oil sales and in Tatneft's share in production in two small fields in Tatarstan, the firm's home region.

The revised figures also included probable liquids reserves of 1.238 billion barrels and possible reserves of 153.5 million barrels, as well as 1.230 billion cubic feet of proved gas reserves.

The correction also forced it to cut its view of future net revenues to $11.8 billion from $17.3 billion.

The firm also said it would file its 2004 financial results with the SEC by June 1 this year, missing an April 15 deadline set by the New York Stock Exchange, where Tatneft's American Depository Receipts trade.

Tatneft said it would ask the New York Stock Exchange for an extension until July 15. The NYSE will review trading of Tatneft American Depositary Receipts by April 15 because of the delay, Tatneft said in a statement.

"The finalization of the 2004 U.S. GAAP financial statements is taking longer than previously announced principally because of the first time application of certain accounting standards ... and the analysis required," Tatneft said in a statement.

The request to the NYSE is a repeat of last year, when Tatneft was the last company on the exchange to file its 2003 results, prompting fears that it could be delisted. Last year the results were held up by an internal investigation into fraud.

Earlier this month, Tatneft said that it had overstated profit in financial results under U.S. GAAP for 2001, 2002 and the first six months of 2003.

 Tatneft may start pumping oil in Iran, Interfax said, citing an unidentified official.

Tatneft CEO Shafagat Takhautdinov commissioned a feasibility study this week for the Rag-e-Safrid field in southern Iran, Interfax reported.

(Reuters, Bloomberg)