JPMorgan - KASE

ended September 30, 2002, average production of 6,787 BOPD from this field was being trucked
from eight wells to the Kumkol field. We have received all regulatory approvals for a 16-inch 177
km pipeline, or the QAM pipeline, that will enable us to join both the Kumkol field and the QAM
fields to a loading facility on the main rail link to both the Shymkent refinery and the export
terminals on the Caspian Sea and the Black Sea. Orders for pipe and long lead equipment have
been placed and we anticipate completion in the third quarter of 2003. This facility, which
includes pumping stations and a rail loading system, will initially be capable of transporting
140,000 BOPD. 3D seismic has been acquired over the whole field. Full field development is
underway for a phased completion in the second quarter of 2003. We have a 100% interest in,
and operate, the field. As of January 1, 2002, the Qyzylkiya field had estimated proved reserves
of 20.6 MMbbls of crude oil.
Aryskum Field. The Aryskum field was discovered in 1988. One productive zone in the
Cretaceous formation was identified at a depth of less than 3,000 feet. As of September 30, 2002,
eleven wells in which we have an interest had been drilled in this field. Initial production test
rates for wells in the Aryskum field ranged from 50 to 600 BOPD per well. In the nine months
ended September 30, 2002, average production was 3,227 BOPD. The proposed QAM pipeline
referred to above with respect to the Qyzylkiya field is proposed to pass by this field. 3D seismic
data have been acquired by us over the entire field. In addition, the construction of a road from
the Aryskum field to the Qyzylkiya field was completed in 2001. As of January 1, 2002, the
Aryskum field had estimated proved reserves of 9.9 MMbbls of crude oil.
Maybulak Field. The Maybulak field was discovered in 1988 with four productive zones in the
Jurassic formation identified at depths shallower than 6,000 feet. As of September 30, 2002,
seven wells in which we have an interest had been drilled in this field. In the nine month ended
September 30, 2002, average production was 878 BOPD. The proposed QAM pipeline referred to
above with respect of the Qyzylkiya field is proposed to pass to the south of this field. In 2001,
we conducted 3D seismic surveys over the entire area of the Maybulak field. Well tests and core
studies have been completed and integrated into the development plans for this field. We have a
100% interest in the field. As of January 1, 2002, the Maybulak field had estimated proved
reserves of 11.9 MMbbls of crude oil.
Nurali. The Nurali field was discovered in 1987. We have a 50% interest in the Nurali field
through our interest in Kazgermunai. Delineation of this field began in 2001 with test production
of certain wells and the acquisition of 3D seismic data. In the nine months ended September 30,
2002, one Nurali well was on test production at a rate of 1,050 BOPD. In addition, 3D seismic
surveys of the Nurali field was completed, which is now being interpreted for inclusion in the full
field development plan due for submission to the Kazakhstan approval authorities. Kazgermunai
satisfied the capital commitments under the licenses for the Nurali field in 2001. As of January 1,
2002, the Nurali field had estimated proved reserves of 4.0 MMbbls of crude oil.
Aksai. The Aksai field was discovered in 1988. We have a 50% interest in the Aksai field through
our interest in Kazgermunai. Delineation of this field also began in 2001 with test production of
certain wells and the acquisition of 3D seismic data. As of January 1, 2002, the Aksai field had
estimated proved reserves of 2.1 MMbbls of crude oil.
North Nurali. The North Nurali field was discovered in 2002 approximately 15 km west of the
Kumkol field. This discovery has been validated by the drilling of two exploration wells in two
separate leads in the area that we license in the South Turgai Basin. The first well, North Nurali 1,
was drilled early in 2002 to a depth of 2,265 meters. With evidence of moveable light, 44 degree
API, sweet crude, North Nurali 2 was immediately spudded in the neighboring lead just one
kilometer to the east. North Nurali 2 has been drilled to a similar depth and seven potential oil
bearing zones have been identified. Six zones have been tested under restricted conditions. The
maximum rate obtained was 720 BOPD, however further testing will be conducted in 2003
following fracture stimulation of the reservoir. Full delineation of North Nurali will be conducted
in 2003 which includes the acquisition of 3D seismic.
East Kumkol. The East Kumkol field was discovered in 2001 as a separate accumulation just east
of the main Kumkol field and 7km from the CPF. Separate field status has been obtained from
the approval authorities and permission was granted in 2001 for long-term well testing. There
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