Novatek is Russia’s largest independent gas producer and the second-largest natural gas producer in Russia. Founded in 1994, the Company is engaged in the exploration, production and processing of natural gas and liquid hydrocarbons and had 4.6 billion oil equivalent barrels of proved reserves at the end of 2005. The Company’s upstream activities are concentrated in the Yamal-Nenets Region, which is the world's largest natural gas producing area and accounts for over 90% of Russia's natural gas production and 20% of the world’s gas production. DeGolyer and MacNaughton, an independent petroleum engineering consulting firm, has appraised the reserves at our three core fields—Yurkharovskoye, East Tarkosalinskoye and Khancheyskoye—and estimates that as of 31 December 2005 these fields had proved reserves of 4.6 billion boe, including 640 bcm of natural gas. In 2005, our three core fields produced 186 mmboe (approximately 510 thousand boe per day), consisting of 25 224 bcm of natural gas and 2.6 mmt of liquid hydrocarbons . Our impressive growth has been achieved through the successful strategy of developing and exploiting our significant hydrocarbon resource base, while maintaining our low-cost competitive advantage. Our strategic goal is to continue building shareholder value through the efficient employment of financial capital and the successful development of our existing asset base.