JPMorgan - KASE

The issuer’s principal activities consist of acting as a finance subsidiary for the Hurricane group.
The issuer has not engaged in any other business activity since its inception and will be restricted
by the terms of the indenture from engaging in any business activity or undertaking any other
activity other than certain activities relating to the notes. See “Description of the Notes —
Certain Covenants — Limitation on Activities of Issuer and Valsera”. The issuer has generated no
revenues during the last two fiscal years. The issuer does not have any facilities and does not own
any real estate. The issuer is not dependent on any patents, licenses, industrial, commercial or
financial contracts or manufacturing processes and is not party to any legal or arbitration
proceedings. Other than in connection with the intercompany loan, the issuer has not made over
the last three fiscal years and will not make any investments in assets or other entities.
The issuer does not prepare separate financial statements. Other than those relating to the notes,
the issuer does not have and will not have any outstanding indebtedness, borrowings or
contingent liabilities. The sole managing director of the issuer is Equity Trust Co. N.V.
Hurricane Hydrocarbons Ltd.
Hurricane Hydrocarbons Ltd., one of the guarantors of the notes, is a corporation organized
under the laws of the province of Alberta, Canada with its registered office and principal
administrative office at SunLife Plaza, North Tower, Suite 1460, 140—4th Avenue S.W., Calgary,
Alberta T2P 3N3, Canada and a principal administrative office at 31 Sheet Street, Windsor,
Berkshire, SL4 1BY, England. Hurricane was incorporated in 1986. See “Business — Corporate
Development” and “— Downstream Operations — History of HOP”. The memorandum of
association of Hurricane permits it to engage in any activity in which a Canadian corporation may
engage not otherwise prohibited by Canadian law. So long as the notes are listed on the
Luxembourg Stock Exchange and the rules of the Luxembourg Stock Exchange shall so require,
copies of the statutory documents of Hurricane will be available for inspection at the office of
the paying agent in Luxembourg. As reported in the notes to Hurricane’s most recent audited
financial statements, the authorized share capital consists of an unlimited number of Class A
common shares and an unlimited number of Class B redeemable preferred stock, issuable in
series. As of December 31, 2001, 80,103,784 Class A common shares were issued and outstanding
and no shares of Class B redeemable preferred stock were issued and outstanding. Hurricane’s
Class A common shares are publicly traded on the Toronto and New York Stock Exchanges.
Hurricane is the parent holding company for the members of the Hurricane group. See the
organizational chart on page 9 of this offering memorandum for a description of Hurricane in
relation to other members of the Hurricane group.
Hurricane’s principal activities consist of acting as the parent holding company for the members
of the Hurricane group and investment in companies engaged in the exploration for, and
production, refining and export of, crude oil and the marketing of crude oil and refined products
in the Republic of Kazakhstan. Hurricane provides various corporate services to the group and
conducts no operating activities, which are conducted through its direct and indirect subsidiaries.
See “Business — Upstream Operations” and “— Downstream Operations”. Hurricane had
consolidated total revenues of $603.1 million and $523.2 million for 2001 and 2000, respectively.
Hurricane leases office space in Calgary, Alberta and Windsor, England, but does not own any
real estate. Hurricane is not dependent on any patents, licenses, industrial, commercial or
financial contracts or manufacturing processes. For a discussion of Hurricane’s interest in the
Turgai Petroleum joint venture which operates the Kumkol North and East Kumkol fields, see
“Management’s Discussion and Analysis of Financial Condition and Results of Operations”,
“Business — Corporate Development — Turgai Petroleum”, “Business — Upstream Operations”,
Note 3 to the unaudited consolidated financial statements included herein and Note 6 to the
audited consolidated financial statements included herein. Reserve information with respect to
each of these fields is set forth in “Business — Upstream Operations — Oil and Gas Reserves”.
Information concerning the board of directors and principal officers of Hurricane is set forth
under “Management”.
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