Aurado Begins Drilling East Tegen-5 in Kazakhstan

Aurado Energy has commenced drilling the East Tegen-5 well which is the third well drilled by the Company on its 90%-owned Liman Block in western Kazakhstan. The East Tegen-5 well is designed to further delineate and develop the East Tegen Field; the well is located due north of the East Tegen-2 well, which was recently drilled and completed for production testing.

The East Tegen-2 well encountered oil over the same zone as East Tegen-1 and is expected to produce at similar rates. A considerable amount of natural gas has built up behind the casing in the East Tegen-2 well, and the Company is awaiting local governmental approval to flare the gas before production testing can be completed.

A pump has been installed on the East Tegen-1 discovery well, in preparation for long-term commercial production of the well. The East Tegen-1 tested at rates of over 600 barrels of oil per day, and is expected to produce on a sustainable basis at between 200 to 250 barrels per day with the assistance of the pump.