KMG EP has discovered oil at the Liman Block

PRESS-RELEASE

KMG EP has discovered oil at the Liman Block

Astana, October 22, 2010. JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company"), announces an oil discovery at the Liman Block. The accumulation is located on the south slope of the Novobogatinsk Salt Dome 70 km west of Atyrau and is in close proximity to the Novobogat Southeast oil field operated by Embamunaigaz.

An oil flow was evident at the first exploration well of over 1200 m depth from Middle Trias. Daily production rate is 24 m3 with 5mm choke. Three more pay horizons are forecast in the drilled section. The discovered 34 API light oil indicates considerable post-salt potential of the region that is currently under large-scale 300 km2 3D seismic survey. The company's 2011 work programme aims at detailed study and volumetrics in order to put the discovery into operation in the near future.

KMG EP's Chief Executive Officer, Kenzhebek Ibrashev, said: "Our success at the Liman Block resulted from several years of dedicated work, integrated studies and significant investment, which are now bearing fruit. In the new phase of our Company's development, exploration is becoming increasingly important. We work hard to expand our exploration portfolio, intensify our post-salt exploration programme and plan to start drilling pre-salt wells in the near future".

Notes to Editors

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2009 was 11.5mmt (an average of 232kbopd) of crude oil, including the Company's share in Kazgermunai and CCEL. The volume of proved and probable reserves (2P) of KMG EP as at the end of 2009 was 234mmt (1.7bn barrels); while including the share of reserves from associates and joint ventures, preliminary about 2.2 bn barrels. The Company's ordinary and preferred shares are listed on Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. In December 2009 International rating agency Standard & Poor's assigned KMG EP "GAMMA-6" level of the corporate governance and in July 2010 confirmed the Company's "BB+" corporate credit rating.

For further details please contact us at:

«KMG EP». Public Relations (+7 7172 97 7600)

Daulet Zhumadil

E-mail: [email protected]

«KMG EP». Investor Relations (+7 7172 97 5433)

Asel Kaliyeva

E-mail: [email protected]

Pelham Bell Pottinger (+44 207 861 3147)

Elena Dobson

E-mail: 

[email protected]

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