BMB Munai Begins Drilling in Aksaz Field

BMB Munai has commenced drilling to increase the depth of the existing Aksaz 4 well located in the Company's ADE block in the Mangistau Usturt High of the Mangyshlak Basin in western Kazakhstan.

Alexandre Roshchin, production manager of the Company's subsidiary Emir Oil stated, "The Aksaz 4 well was drilled to a depth of 4,080 meters without penetrating oil-bearing formations in 1994. The well had production casing placed to a depth of 3,090 meters. The original drilling activity was done by the Kazakhstan state operated drilling company. The drilling was suspended at that depth because of financial constraints experienced in Kazakhstan during this period. It was understood from earlier experience drilling the Aksaz 1 well, that oil-bearing formations in the Aksaz field are found deeper at a depth of 4,100 to 4,350 meters in the Triassic formation."

Mr. Roshchin continued, "As a result of the 3D seismic studies conducted by the Company, we believe there are additional oil-bearing formations in the Paleozoic strata in the interval between 4,350-4,900 meters and therefore, we plan to drill to a total depth of 4,900 meters. Barring unforeseen difficulties, it is anticipated that the drilling and core sample studies will be completed within a period of about four months."