The structure.

The production structure of "Noyabrskneftegas" joint-stock company includes 30 subdivisions, which in their turn contain 49 more sections.

In the course of 1996 the restructuring and integration of company's subdivisions and services was taking place. Thus the unified divisions on drilling works, agriculture, transport, material and technical support were formed. Some of the subdivisions were integrated with the structures of Building and Assembling Trust and one of the oil-and-gas extracting divisions of "Muravlenkovskneft" company.

The town economy servicing enterprises were handed over to the municipal authorities. As a result of these measures the number of employees in "Noyabrskneftegas" reduced from 48 000 to 40 000 (by 20%). The policy of company's management and staff members is aimed at the support of social programs improving the living conditions of local population. Much attention is paid to the environment protection. The health protection and improvement of the Far North inhabitants is a part of company's social program.

Privatization.

Depositary - the Stock Registration Company (Moscow).

Transfer-agent of the depositary - Noyabrskneftecombank (Noyabrsk town).

Arthur Andersen carries out the financial audit.

The evaluation of oil and gas resources is carried out by engineering company Miller & Lents (Houston, USA).

"Noyabrskneftegas" company was privatized according to the first variant of privileges. Its stock (15 709 million roubles) was divided into 78 545 000 shares costing 200 roubles each. Among those there were 58 908 750 ordinary and 19 636 250 preference shares.

At the shareholders' meeting on May 20, 1997, the stock was increased up to 30 830 million roubles following the re-evaluation of the fixed funds. The shareholders charged the Board of Directors to place 115 612 500 ordinary and 38 537 500 preference shares costing 200 roubles each. In case of the additional issue the new shares will be placed at the holders' disposal free of charge and in proportion to their initial share.

The securities of "Noyabrskneftegas" were issued in April 1994. Till June 1996 the development of these securities' market was steady, but since the end of June the cost of the Company's shares (especially the preference ones) started to grow rapidly. The specialists explain this process by the publication of the study on investment rating of Russian oil companies, made by one of the most competent investment banks "Solomon Brothers". In this study "Noyabrskneftegas" received high rating and its shares were recommended for purchasing.