The reserves appraisal report effective January 1, 2004 was prepared by Oilfield Production Consultants (OPC), independent petroleum consultants, in accordance with SEC classifications and guidelines. Gross total proven oil reserves for the Ninotsminda Field increased from 4.15 million barrels (mmbbls) at the end of December 2002 to 6.762 mmbbls at January 1, 2004. Over the same period, natural gas reserves, on an energy equivalent basis, decreased from 1.34 million barrels of oil equivalent (mmboe) to 0.51 mmboe.