1. Estimating Reserves and Resources in Russia New York Energy Forum May 15, 2008 Presented by Miller and Lents, Ltd. International Oil and Gas Consultants James C. Pearson, Chairman

2. Hydrocarbon Finding, Developing and Producing E&P Life Cycle Prospect Generation Wildcat Drilling Discovery, Appraisal, Development Field Optimization Enhanced Recovery Decline, Abandonment

3. Reserves and Resource Classifications Within the petroleum industry, there are three basic classification systems being used by oil and gas companies and financial institutions. –Hydrocarbon Reserves –Contingent Resources –Prospective Resources

4. Reserves and Resources Classification Framework

5. Key Reserve Definitions SECU.S. Stock Exchanges GAAP Reporting SPEOther Stock Exchanges (Modified Versions) Financial Institutions WPC, AAPG, SPEE OPEC RussianState Committee of Reserves

6. History of Reserve Definitions SEC1978Definitions Issued 2000Guidelines SPE1964Definitions Issued 1981Revised Definitions 1987Revised Definitions 1997Adopted by SPE and WPC 2000Resource Definitions 2007Combined Reserve and Resource Definitions RussianPre 1/1/09Soviet Era Definitions As of 1/1/09New Definitions

7. Scope of Definitions SECProved SPEProved, Probable, Possible, Resources RussianA, B, C1, C2, D1, D2, D3

8. Limitations of SEC Definition that Affect Russia License expiration date Only offset locations proved

9. TNK Proved Reserves Estimates January 1, 2003 Russian A + B + C115, 082 Million Barrels of Oil SPE Definition Proved 8,374 Million Barrels of Oil SEC Definition 3,048 Million Barrels of Oil

10. TNK Proved Reserve Categories Estimates January 1, 2003 Million Barrels of Oil Reserve Category SPE Definition SEC Definition Proved Developed Producing 3,4042,047 Proved Developed Nonproducing 2,022 588 588 Proved Undeveloped 2,948 413 413

13. 400 Meter Spacing (16 Hectares/Well) PD Reserves = 2 mm bbl (SPE) PUD Reserves = 62 mm bbl (SPE) Total Proved = 64 mm bbl (SPE) Case A – Discovery and Delineation of an Oil Field

14. PD Reserves = 2 mm bbl (SPE) PUD Reserves = 16 mm bbl (SPE) Total Proved = 18 mm bbl (SPE) Case B – SEC Proved Undeveloped Locations

15. Russian Upsides Infill drilling Improved waterfloods – Miscible flood Horizontal drilling Gas cycling Reservoir surveillance Dedicated work force

16. Means San Andres Unit Exxon Operated Waterflood Production History

17. Waterflood Patterns Oil Recoveries and Life of Production 20 to 1 Water-Oil Ratio Pattern Oil Recovery, MBO Recovery Factor, Percent Life of Production, Years Russian11,509.546.023.0 Western11,190.944.810.4 Model Original Oil in Place = 25 million barrels

18. Comparison of API Recovery Factors to Performance Derived Recovery Factors Cretaceous Reservoirs – Western Siberia, Russia

19. Russian Downsides Reserve uncertainty Political risk Nationalism High taxes 12/31/07 contract export price = $88.16/BBL Net oil price, before profit tax = $30.58/BBL