Petrolinvest Signs 3 LOIs for Kazakhstan Assets

p>The Management Board of PETROLINVEST S.A. informs that, on January 10, 2008, the Company signed three letters of intent relating to the acquisition of additional assets in Kazakhstan in exchange for newly issued shares of the Company.

The letter of intent signed by the Company, Dzhumageldy Rakhishevich Amankulov, Atameken-Prommash LLP, GEOKAPITAL LLP and MARBURG OIL LLP, relating to the Company's acquisition of a 50 per cent interest in TOO EMBA JUG NIEFT, a company incorporated under the laws of Kazakhstan, in which PETROLINVEST S.A. already holds a 50 per cent interest. The letter of intent envisages an issue of 543,034 PETROLINVEST S.A. shares in exchange for 50 per cent of TOO EMBA JUG NIEFT shares. Moreover, if it is confirmed that the unrisked mean estimate of prospective resources of TOO EMBA JUG NIEFT are not less than 160 million barrels of oil, additional 271,517 shares of the Company will be issued. Moreover, PETROLINVEST S.A. agreed to recommend that two representatives of the Kazakh party should be appointed to the Company's Supervisory Board. Both Parties expect that a binding investment agreement will be executed by the end of January 2008. Once it is executed, PETROLINVEST S.A. will hold 100 per cent of TOO EMBA JUG NIEFT shares. The value of one share of PETROLINVEST S.A. used for the purpose of determination of the number of shares to be issued is PLN 320.

The letter of intent signed by the Company and 11 shareholders of Occidental Resources Inc., a company incorporated under the laws of the State of Utah, USA, relating to the Company's acquisition of an interest of about 48 per cent in Occidental Resources Inc., in which it already holds a 50 per cent interest. Occidental Resources Inc. holds 100 per cent of shares of OilTechnoGroup, a company incorporated under the laws of Kazakhstan. The letter of intent envisages an issue of 2,353,149 PETROLINVEST S.A. shares in exchange for about 48 per cent of Occidental Resources Inc. shares. Both Parties expect that a binding investment agreement will be executed by the end of January 2008.

Once it is executed, PETROLINVEST S.A. will hold about 98 per cent of Occidental Resources Inc. shares. The value of one share of PETROLINVEST S.A. used for the purpose of determination of the number of shares to be issued is PLN 320.

The letter of intent signed by the Company, Pruner Group Limited, Mars International Worldwide Inc. and Munivac Global Ventures Inc., relating to the Company's acquisition of a 100 per cent interest in Capital Energy S.A., a company incorporated under the laws of the British Virgin Islands. Capital Energy S.A. holds the following majority interests in four companies incorporated under the laws of Kazakhstan which hold concessions for the exploration and exploitation of oil: BMB Munai LLP (75 per cent of shares), Bolz LLP (65 per cent of shares), Maksat-Munai LLP (100 per cent of shares) and Erkin Oil LLP (50 per cent of shares).

The signing of these letters of intent is yet another step of the Company's strategy aimed at focusing its Kazakh operations on reserves with the highest potential. The Company's Management Board believes that the transactions envisaged in the signed letters of intent will result in an increase in the prospective resources of the PETROLINVEST Group of about 130 per cent and increased shareholding of PETROLINVEST S.A. in TOO EMBA JUG NIEFT and Occidental Resources, Inc.

Moreover, the new significant shareholders will strengthen the PETROLINVEST Group's capabilities and potential for expansion in international markets and the Company's position in Kazakhstan.

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