BMB Munai Begins Drilling in Kariman Field

BMB Munai has commenced drilling in the extended license territory in the Republic of Kazakhstan that adjoins the Company's ADE oil fields. The initial project will be to increase the depth of an existing non-producing well designated Kariman 1. Drilling operations are being conducted by Oil and Gas Exploration, Cracow, Poland, under a drilling contract executed with the Company in January 2006.

The Kariman-1 well was cased to a depth of 1,661 meters and drilled to a total depth of 3,069 meters in 1967 by the Soviet government. The drilling was suspended at that depth because it was believed that the oil-bearing formations would not be found deeper than lower Jurassic formations.

In his announcement that drilling on the Kariman 1 well is commencing, Toleush Tolmakov, General Director of BMB Munai's operating subsidiary in Kazakhstan, stated, "Our study of more recent advanced geological and geophysical information developed by the company indicates that oil-bearing formations in the Kariman field would be expected at a depth of 3,600 to 3,800 meters, in the Triassic formation. This is the same depth and formation as the Company's nearby producing wells in the Dolinnoe oil and gas field. Therefore, we plan to deepen the wells into the Triassic strata to depth of 3,800 meters and study the core samples over the next two months."

BMB Munai is an independent oil and gas company engaged in the exploration, development and production of crude oil and natural gas in western Kazakhstan. The Company maintains administrative offices in Almaty, Kazakhstan and Salt Lake City, Utah.