BMB Munai Begins Drilling Well on Dolinnoe Field

BMB Munai reports that its Kazakhstan operating subsidiary, Emir Oil, has begun drilling an oil well designated as Dolinnoe-2 under the Company's exploration license with the Republic of Kazakhstan. The anticipated depth of a new well is approximately 4,000 meters. The drilling site is in the Dolinnoe oil and gas field located in the Company's ADE block near the Caspian Sea port city of Aktau, in western Kazakhstan.

The well site was selected by the Company earlier this year based on the results of a 3D seismic study prepared by PGS-GIS Data Processing. The site preparation and drilling rig placement was completed in July 2004. The Company has contracted with a Saipem S.p.A. a prominent European oil drilling and service company, to drill and complete the well.

Currently the Company has regular test production of crude oil from its Dolinnoe-1 well. The current oil production is sold to the Kazakhstan domestic market. The Company expects to continue sales exclusively within Kazakhstan until oil production levels are increased to quantities that make exporting feasible.