Summa Group to ready YATEK for IPO
MOSCOW. March 16 (Interfax) - The Summa Group plans to place OJSC Yakutsk Fuel and Energy Company (YATEK) shares on the market, and preparing the company for an IPO is a strategic task for company General Director Zairbek Yusupov, a YATEK board of directors decision says.
Summa has consolidated 98% of the stock on YATEK. No comment from Summa has yet been provided. Summa's main owner Ziyavudin Magomedov had said not long ago that a YATEK IPO was a possibility.
YATEK holds licenses for the industrial development of the Srednevilyuiskoye and Mastakhskoye gas condensate deposits, for geological surveying, prospecting, and production at the Mirninsky and Tolonsky hydrocarbons sections, and also for geological surveying with the aim of searching out and evaluating deposits within the bounds of the Tymtaidakhsky section in Republic of Sakha (Yakutia).
C1 gas reserves at the Srednevilyuiskoye deposit amount to 123.3 billion cubic meters (bcm), condensate reserves to 7.6 million tonnes; at the Mastakhskoye deposit C1 reserves are 18.1 bcm and C2 reserves 6.5 bcm; at the Tymtaidakhsky section, D1 reserves amount to 21 bcm and D2 reserves - 16 bcm; at the Mirninsky section - C1 reserves 9.9 bcm, C2 reserves 4.486 bcm, and C3 reserves 7.9 bcm; at the Tolonsky section - C1 reserves 33.4 bcm, C2 reserves 10.6 bcm (Tolonsky section condensate - C1 reserves 1.6 million tonnes and C2 reserves 0.5 million tonnes).
At the present time, YATEK is producing around 1.4 bcm of gas per year, gas that supplies only Yakutia. Company plans include increasing production at the Srednevilyuiskoye deposit to 11.6 million cubic meters per day (about 4.2 bcm per year).