BMB Munai Suspends Re-entry Operations on Borly-2 Well

BMB Munai has ceased re-entry operations on Borly-2 well and shut down the well. Borly-2 is an existing well, drilled in 1996, which is located on the Extended License Territory in Kazakhstan. Company started re-entry operations on this well in July. Company's goal was to collect additional geological information about the Borly structure. Company considered re-entering of an existing well the most cost effective method.

BMB Munai's Chief Operating Officer, Gamal Kulumbetov stated, "We were able to ream and clean the existing well bore to the depth of 2,021 meters. At that depth we began to experience sticking of the drill string tool. We employed several methods to solve this difficulty, with only partial success. Since the original well was cased down to only 1,900 meters, we have attributed the difficulty operating the drill string tool to the poor condition of the well's open well bore."

Mr. Kulumbetov continued, "The rig used to conduct the re-entry operations was a lighter rig operated by our contract driller, Great Wall. We decided to postpone the re-entry operations on the well until a heavier rig more suitable to dealing with the existing conditions in the well bore becomes available. Decision to terminate the Borly-2 re-entry at this time will allow the Company to redirect more than 60 percent of the budget allocated for Borly-2 re-entry to other projects."

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.