JPMorgan - KASE

The following table sets forth a reconciliation of our total proved plus probable reserves before
royalties (unrisked) as of January 1, 2002 against such reserves as of January 1, 2001 based on
escalating price and cost assumptions:
Crude Oil, NGL and Natural Gas Reserves Reconciliation (1)
Gas (Bcf)
Crude Oil and NGL (Mbbls)
Proved Probable Total Proved Probable (2) Total (2)
January 1, 2001 ...................... 32 6 38 315,400 172,160 487,560
Production .......................... — — — (36,820) — (36,820)
Drilling and revisions to prior estimates . 1 10 11 69,481 (7,906) 61,575
January 1, 2002 ...................... 33 16 49 348,061 164,254 512,315
(1) The reconciliation of reserves is a comparison of the McDaniels evaluation from January 2001 and January 2002 and not the
McDaniels January 2001 report updated in May 2001.
(2) The estimates of probable reserves utilized in this table are unrisked. See “Business and Properties — Oil and Gas Exploration
and Development Operations — Estimates of Proved and Proved Plus Probable Reserves and Present Worth Values.”
The following table sets forth a reconciliation of our proved plus probable reserves before
royalties (unrisked) by field as of January 1, 2002 against such reserves as of January 1, 2001
based on escalating price and cost assumptions:
Kumkol
South
Kumkol
North
South
Kumkol
East
Kumkol Qyzylkiya Aryskum Maybulak Akshabulak Nurali Aksai
(MMbbls)
Reserves at Jan 1, 2001 . . 146.6 95.5 45.1 0.0 28.6 54.2 30.1 67.0 17.0 3.5 487.6
Revisions .............. 9.8 21.5 2.1 11.0 10.2 (25.8) (9.0) 44.1 (6.4) 4.0 61.5
Production ............ (21.6) (5.8) (4.7) (0.2) (1.1) (0.0) (0.3) (3.0) (0.1) (0.0) (36.8)
Reserves at Jan 1, 2002 . . 134.8 111.2 42.5 10.8 37.7 28.4 20.8 108.1 10.5 7.5 512.3
Total
There are numerous uncertainties inherent in estimating quantities of proved reserves and in
projecting future rates of production and the timing of development expenditures, including
many factors beyond our control. The reserve data presented above represent only estimates.
Reservoir engineering is a subjective process of estimating underground accumulations of oil and
gas that cannot be measured in an exact manner. The accuracy of any reserve estimate is a
function of the quality of available data and of engineering and geological interpretations and
judgment. As a result, estimates of different engineers often vary. In addition, results of drilling,
testing and production subsequent to the date of an estimate may justify revision of that
estimate. Reserve estimates are often different from the quantities of oil and gas that are
ultimately recovered. The meaningfulness of reserve estimates is highly dependent on the
accuracy of the assumptions on which they were based. In general, the volume of production
from our oil and gas properties declines as reserves are depleted. Except to the extent that we
conduct successful exploration and development activities or acquire additional properties
containing proved reserves, or both, our proved reserves will decline as reserves are produced.
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