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. Last Updated: 07/27/2016

State to Give LSE Dossier on Imperial

The Natural Resources Ministry will inform the London Stock

Exchange of its finding that the oil reserves of Imperial Energy do not match those in Russian records, an official said Wednesday.

The report will be delivered next week by two agencies supervised by the ministry that have responsibility for monitoring reserves of natural resources and their exploitation, the official said.

Natural Resources Minister Yury Trutnev said last week that a working group, drawn from the ministry, auditors and oil companies, had found that the reserves declared by London-listed independent oil company Imperial Energy were artificially inflated.

Imperial Energy has rejected the accusations and said auditor DeGolyer&MacNaughton's estimates were based on true and correct information.

The group studied deposits of Imperial Energy's units, Nord Imperial and Alyansneftegaz, estimated by D&M.

"On three of five deposits [Kiev-Yevganskoye, Festivalnoye and Snezhnoye], reserves estimated by the auditor and registered at the state balance differ by a factor of several times," the working group's report said.

It also said the commission took into account the difference between reserves classification accepted in Russia, and the globally recognized SPE classification used by auditors.

The official also said that Imperial's exploration licenses for the three fields would expire in 2008.