Completion of construction of the exploratory well no. 2 at the Tyub-Karagan contract area

PRESS RELEASE

Aktau Branch of Tyub-Karagan Operating B.V., Operator of the Tyub-Karagan project, announces the completion of construction of the exploratory well No. 2 with the projected depth of 2150 m. Well drilling started on March 31, 2011; the depth of 2150 m has been reached by now. In the process of drilling the Paleogenic, Cretaceous, Jurassic and Triassic sediments were discovered and subjected to a complex of geophysical measurements in accordance with the Technical Project.

Upon completion of all research works the exploratory well No. 2 will be abandoned as having served its geological purpose. The data obtained in the process of drilling is subject to analysis in order to update the geological model and assess the prospectivity of the contract area.

Decision on the further implementation of the project will be taken subsequent to the results of the analysis and integration of all geology and geophysics and oil-field data.

For reference:

Tyub-Karagan section is located in the central part of the Kazakhstan Caspian sector, 40 km away from the Bautino port. Total contract area is 1372 sq.km. The sea depth in the zone is about 8 m.

The project on the Tyub-Karagan contract area development is regulated by the Production Sharing Agreement (PSA) dated December 29, 2003 between the Ministry of energy and mineral resources of the Republic of Kazakhstan and JSC National.

Company “KazMunayGas” in respect of the Tyub-Karagan section located in the Kazakhstan Caspian sector.

Currently, JSC OOC “KazMunayTeniz” and “Lukoil Overseas Shelf B.V.”, the subsurface users on the project, have equal shares in the project — 50% each company. “Lukoil Overseas Shelf B.V.” provides 100% financing of the project at the stage of geologic exploration.