Nelson Resources to Acquire Stake in Kazakhstan Field

Nelson Resources is in advanced negotiations with CNPC to acquire a participatory interest in the North Buzachi oil field, located on the Buzachi Peninsula approximately 200 km north of the city of Aktau, in Western Kazakhstan. Until its acquisition by CNPCI, the oil field had been operated by Texaco North Buzachi Inc.

Finalization of the transaction is subject to agreement on definitive legal documentation, completion of due diligence and financing arrangements, and receipt of required governmental and regulatory approvals. There can be no assurance that these matters or approvals will be completed or obtained. Nelson expects the transaction to be concluded by the end of November.