Company Overview: Chaparral Resources

Chaparral was formed in 1972 as a Denver-based Rocky Mountain exploration company. Beginning in 1994 an outside group of highly experienced oil and gas executives and investors took a significant ownership position in Chaparral. This group began to transform the company into an international operator. In 1997 this transformation was complete with new management, new headquarters in Houston, Texas, and new production in Kazakhstan.

CORPORATE HIGHLIGHTS

• E&P company based in Houston, Texas
• Twenty-six year operating history
• Trades under NASDAQ symbol CHAR
• Over 30% of equity owned by institutional investors
• Management team headed by Co-Chairman and CEO, John G. McMillian, and Co-Chairman, James A. Jeffs.

KAZAKHSTAN PROJECT
The Kazakhstan project is Chaparral's first oil field to follow the new corporate strategy. Chaparral is leading the development of the Karakuduk oil field. Chaparral's involvement in the Karakuduk Field consists of a 50% share in Closed Type Karakudukmunay, JSC ("KKM") with KazakhOil, the Kazakhstan National Petroleum Company, holding the majority of the remaining 50%. Chaparral, as the investor and operator for KKM, is developing the Karakuduk Field using a two-phase development strategy.

CHAPARRAL STRATEGY
Chaparral's strategy is to obtain development rights to oil and gas fields located outside the U.S. where discoveries have been made, but the fields have either not been placed on production or the field could be enhanced with more efficient management and technical expertise provided by Chaparral. The target size of these acquisitions is 50-500 million barrels of oil equivalents.

Quick Facts

Line of Business: Oil and gas exploration and production
Ownership: Public
Stock Exchang: NASDAQ
Stock Ticker: CHAR