OilVoice - Timan Oil & Gas Zapadno-Vodneskoye Licence and NGPT Licence Extension Resolution

Timan Oil & Gas Zapadno-Vodneskoye Licence and NGPT Licence Extension Resolution

Wednesday, November 05, 2008

Timan Oil & Gas announces that it has become aware of final rulings in its favour from the Supreme Arbitration Court of the Russian Federation (the Presidium Court) in relation to both its Zapadno-Vodnenskoye Licence and its NGPT licence extension. The rulings were published by the Presidium Court on 20 September and 11 October 2008.

Zapadno-Vodnenskoye Licence

In October 2007, the Moscow City Arbitration Court declared that the failure by the Territorial Subsoil Agency in the Republic of Komi (Kominedra) to issue the exploration licence over the the Zapadno-Vodnenskoye area in Timan-Pechora to Timan’s main operating subsidiary, NGPT, was unlawful and ordered Kominedra to issue the licence to NGPT. An appeal against this ruling by the Russian Federal Subsoil Agency (Rosnedra) was dismissed by the Moscow Ninth Apellate Arbitration Court on 5 March 2008 and by the Moscow Federal Arbitration Court on 18 June 2008.

On 18 September 2008 the Presidium Court ruled that it found no grounds to satisfy the appeals that were filed with it by each of Kominedra and Rosnedra regarding the Zapadno-Vodnenskoye Licence. Kominedra is therefore now legally bound to issue the licence to NGPT.

NGPT Licence Extension

In October 2007, the Moscow City Arbitration Court ruled that an internal order by Rosnedra to Kominedra to revoke the extension of Timan’s exploration and production licence for the Nizhnechutinskoye Field in Timan-Pechora (NGPT Field) was unlawful and annulled the order. An appeal against this ruling by Rosnedra was dismissed by the Moscow Ninth Apellate Arbitration Court on 28 February 2008 and by the Moscow Federal Arbitration Court on of 18 June 2008.

On 9 October 2008, the Presidium Court ruled that it found no grounds to satisfy the appeal that was filed with it by Rosnedra regarding NGPT Licence extension.

The Presidium Court

The Presidium Court is the court of final instance in commercial disputes in the Russian Federation.

Alexander Kapalin, CEO of Timan Oil & Gas plc commented: ”We are pleased that this matter has been brought to a close. It has been a prolonged and disruptive legal process, but we have always been confident of our position. We look forward to progressing with our production plans for NGPT.”