BMB Completes Additional Workover of Dolinnoe-1 Well

During the first quarter of 2004, BMB Munai performed subsurface workover of the Dolinnoe-1 well for the purpose of re-entering the well. However, geophysical equipment left in the well from the Soviet Union period did not allow for completion of scheduled testing and research of the 3521m-3570m interval at that time. BMB Munai recently completed additional workover of the Dolinnoe-1 well to remove the equipment and perforated the 3521m-3570m interval.

Prior to perforating the interval, test production at the Dolinnoe-1 well averaged 165 bopd. After beginning of testing following perforation of the interval, the oil flow rate has increased to 250 bopd, a 51% increase. This increase in flow rate is based only on initial results. These initial results may not be indicative of future operational capacity of the penetrated formation. The Company anticipates the need to continue production testing for a period of months before expected production rates from the Dolinnoe-1 well can be predicted with confidence.