JPMorgan - KASE

The present worth values of our reserves contained in the following tables may not be
representative of the fair market value of the reserves. Although the estimates of
reserves and present worth value thereof contained in the McDaniel Reports are
considered reasonable, future performance may vary from the forecasts presented
therein and may justify either an increase or decrease of reserves. Assumptions relating
to costs, prices for future production, and other matters are summarized below and in the notes
following the table. The McDaniel Reports are based, in part, on data supplied by us and, in part,
on McDaniel’s opinion of reasonable practice in the industry. Certain factual data was supplied to
McDaniel by us and was relied on by McDaniel in preparing its reports. The data includes
ownership, geological and production data, costs, contracts and relevant documents. Capital
costs and drilling and workover costs were estimated by McDaniel based on information provided
by us. In the absence of such data or information, McDaniel relied upon its opinion of reasonable
practice in the industry.
Except as otherwise indicated, all calculations of estimated proved reserves are net of value
added tax, or VAT, and general and administrative costs incurred by us in Kazakhstan, but give
no effect to income taxes, excess profit taxes or other applicable taxes attributable to estimated
future cash flows from the sales of oil and natural gas.
Estimated Reserves and Present Worth Values Before Income Tax on an Escalating Price Basis
Estimated Present Worth Values
Estimated Reserves
Before Income Tax (3)(4)(8)
Oil Natural Gas Discounted at
Gross (1) Net (2) Gross (1) Net (2) Undiscounted 10% 15% 20%
(Mbbls) (Bcf) (in 000’s)
Proved developed
producing (6) ........ 243,229 224,403 0 0 $1,745,870 $1,194,537 $1,035,602 $916,405
Proved undeveloped (6) . 104,832 96,331 33 30 1,070,885 688,049 535,811 471,762
Total proved (6) ........ 348,061 320,734 33 30 2,816,755 1,882,586 1,601,413 1,388,167
Probable reserves (6) .... 164,254 152,393 16 15 1,722,892 914,581 717,440 581,626
Proved plus probable
unrisked (7) .......... 512,315 473,127 49 45 4,539,647 2,797,167 2,318,853 1,969,793
Reduction for risk (7) .... (82,127) (76,197) (8) (8) (861,446) (457,290) (358,720) (290,813)
Total proven plus
probable risked ..... 430,188 396,930 41 37 3,678,201 2,339,877 1,960,133 1,678,980
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