SOURCE: O.A.O. Tatneft

November 13, 2006 10:43 ET

O.A.O. Tatneft announcement re: 2005 20-F and 1H 2006

Taterstan -- (MARKET WIRE) -- November 13, 2006 --

On November 13, 2006 OAO Tatneft issued the following press-release:

November 13, 2006

OAO Tatneft has filed its annual report on Form 20-F for 2005 with the SEC and published its unaudited interim consolidated U.S. GAAP financial statements for the first six months of 2006

OAO Tatneft (the "Company") announces today that it has filed its annual report on Form 20-F for 2005 (incorporating, inter alia, the Company's audited consolidated financial statements for 2005 prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP")) with the U.S. Securities and Exchange Commission (the "SEC"). At the same time, the Company published on its web-site (and furnished to the SEC on Form 6-K) its unaudited interim consolidated U.S. GAAP financial statements for the six months ended June 30, 2006.

Selected financial highlights below are based on the respective U.S. GAAP financial statements of the Company. Russian Ruble amounts below have been translated into U.S. Dollars at the exchange rates on the last day of the respective reporting period.

The Company's revenues in 2005 were 300,358 mln Rubles (US$10,436 mln) as compared to 206,782 mln Rubles (US$7,452 mln) in 2004. The net income for 2005 was 28,242 mln Rubles (US$981.3 mln) as compared to 23,410 mln Rubles (US$843.6 mln) in 2004.

The Company's revenues for the first six months of 2006 were 160,860 mln Rubles (US$5,940 mln) as compared to 138,816 mln Rubles (US$4,842 mln) for the first six months of 2005, and the net income was 17,922 mln Rubles (US$661.8 mln) for the first six months of 2006 as compared to 15,797 mln Rubles (US$551 mln) for the first six months of 2005.

Total assets of the Company decreased from 309,561 mln Rubles (US$11,155 mln) as of December 31, 2004, to 282,144 mln Rubles (US$9,803 mln) as of December 31, 2005, and increased to 303,591 mln Rubles (US$11,210 mln) as of June 30, 2006.

Total liabilities of the Company decreased from 132,431 mln Rubles (US$4,772 mln) as of December 31, 2004, to 79,734 mln Rubles (US$2,770 mln) as of December 31, 2005, and increased to 83,058 mln Rubles (US$3,067 mln) as of June 30, 2006.

Total shareholders' equity increased from 170,476 mln Rubles (US$6,143 mln) as of December 31, 2004, to 198,721 mln Rubles (US$6,904 mln) as of December 31, 2005, and to 216,712 mln Rubles (US$8,002 mln) as of June 30, 2006.

The Company's representatives will discuss the U.S. GAAP financial highlights for 2005 and the first half of 2006 on a conference call the details of which will be announced separately.

Forward-looking statements: This press release contains certain forward-looking statements of OAO Tatneft. OAO Tatneft can give no assurance that any of the events mentioned in such statements will occur, or as to the precise timing of their occurrence.

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