Tyumen Oil's Shareholders Approve New Share Issuance for Subsidiary Consolidation

Apr 20, 2001, 01:00 ET from Tyumen Oil

    TYUMEN, Russia, April 20 /PRNewswire/ -- Tyumen Oil's shareholders today
 approved the issuance of new shares for the consolidation of four of its
 subsidiaries, in a step to increase the company's value, attract investment
 and solidify management control.
     Tyumen Oil's shareholders voted to issue an additional 1.2 billion shares,
 an increase of 38 percent, from 3.1 billion shares outstanding. The new shares
 will be exchanged for shares in four of its crude oil production subsidiaries.
 The boards of directors of Samotlorneftegas, Nizhnevartovsk Oil Production,
 Tyumenneftegas and TNK-Nyagan had approved the share swap last December, and
 their shareholders approved the plan in February of this year.  The
 subsidiaries account for most of Tyumen Oil's value.
     "We are pleased that the majority of the subsidiaries' shareholders
 accepted our offer price and that Russian regulators and Western consultants
 have supported the transparent and fair manner in which we have conducted this
 transaction," said Joseph Bakaleinik, Tyumen Oil's chief financial officer.
 "The expected increase in Tyumen Oil's shareholder value will enhance our
 access to international capital markets, which we plan to enter with Eurobonds
 in the near term, and possibly equity in the longer term, if market conditions
 are favorable."
     The new shares approved today at a shareholders meeting in the Western
 Siberian city of Tyumen, near the company's oil fields, are to be registered
 by Russia's Federal Securities Markets Commission, issued and exchanged by the
 end of this year.  Then, the subsidiaries' assets, liabilities and licenses
 will be transferred to Tyumen Oil.  Once the share swap is completed, Tyumen
 Oil's current owners will reduce their shareholding from 99.9 percent to
 around 85 percent.  The balance will comprise new minority shareholders from
 the subsidiaries, including employees, management, Russian banks and stock
 funds.
 
     Tyumen Oil, established in 1995 and owned by the Russian Alfa Group and
 US-Russian Access/Renova, has proved crude oil reserves of more than
 8.2 billion barrels and produces more than 800,000 barrels of crude oil per
 day.  It ranks No. 2 in reserves and No. 4 in production among Russian oil
 companies, and was named the world's "Best Oil and Gas Company" of 2000 by
 Financial Times Energy.  Tyumen Oil owns and franchises a chain of nearly
 1,000 branded retail gasoline stations in Russia. For further information,
 visit www.tnk.ru.
 
 

SOURCE Tyumen Oil
    TYUMEN, Russia, April 20 /PRNewswire/ -- Tyumen Oil's shareholders today
 approved the issuance of new shares for the consolidation of four of its
 subsidiaries, in a step to increase the company's value, attract investment
 and solidify management control.
     Tyumen Oil's shareholders voted to issue an additional 1.2 billion shares,
 an increase of 38 percent, from 3.1 billion shares outstanding. The new shares
 will be exchanged for shares in four of its crude oil production subsidiaries.
 The boards of directors of Samotlorneftegas, Nizhnevartovsk Oil Production,
 Tyumenneftegas and TNK-Nyagan had approved the share swap last December, and
 their shareholders approved the plan in February of this year.  The
 subsidiaries account for most of Tyumen Oil's value.
     "We are pleased that the majority of the subsidiaries' shareholders
 accepted our offer price and that Russian regulators and Western consultants
 have supported the transparent and fair manner in which we have conducted this
 transaction," said Joseph Bakaleinik, Tyumen Oil's chief financial officer.
 "The expected increase in Tyumen Oil's shareholder value will enhance our
 access to international capital markets, which we plan to enter with Eurobonds
 in the near term, and possibly equity in the longer term, if market conditions
 are favorable."
     The new shares approved today at a shareholders meeting in the Western
 Siberian city of Tyumen, near the company's oil fields, are to be registered
 by Russia's Federal Securities Markets Commission, issued and exchanged by the
 end of this year.  Then, the subsidiaries' assets, liabilities and licenses
 will be transferred to Tyumen Oil.  Once the share swap is completed, Tyumen
 Oil's current owners will reduce their shareholding from 99.9 percent to
 around 85 percent.  The balance will comprise new minority shareholders from
 the subsidiaries, including employees, management, Russian banks and stock
 funds.
 
     Tyumen Oil, established in 1995 and owned by the Russian Alfa Group and
 US-Russian Access/Renova, has proved crude oil reserves of more than
 8.2 billion barrels and produces more than 800,000 barrels of crude oil per
 day.  It ranks No. 2 in reserves and No. 4 in production among Russian oil
 companies, and was named the world's "Best Oil and Gas Company" of 2000 by
 Financial Times Energy.  Tyumen Oil owns and franchises a chain of nearly
 1,000 branded retail gasoline stations in Russia. For further information,
 visit www.tnk.ru.
 
 SOURCE  Tyumen Oil