Nostrum Oil & Gas Plc

Results for year ended 31st December 2007

The Zhaikmunai Group is an independent oil and gas enterprise having its principal operating company in northwestern Kazakhstan engaging in the exploration, production and sale of crude oil and gas condensate.

— From Explortion to Production —

2007 was the year in which Zhaikmunai successfully moved from the exploration phase to the production phase. Commercial production started in March as the partnership was granted a production permit relating to the northern part of the Tournasian reservoir.

Financial highlights

  • Execution of an aggressive investment program. Cash flow from investing activities US$ 173,1 million (2006: US$ 92,8 million);
  • Refinancing of existing debt facility at lower interest rate;
  • Almost doubling revenue to US$ 108.5 million (2006: US$ 58.5 million), on the back of higher commodity prices (average Brent price 2007: 72,43 $/bbl versus 2006: 67.83 $/bbl);
  • Net Income US$ 37,7 million, up from US$ 12,9 million in 2006.

Operational highlights

  • Production for the year up to 1,8 mbbls (2006: 1,1 mbbls);
  • 2P reserves increased from 304 mboe in 2006 to 397 mboe in 2007;
  • Successful execution of the 2007 drilling program (drilling 9 wells);
  • Signing of EPC contract for a Gas Treatment Unit (contract value $ 182 million).

Strategic highlights

  • Successful completion in Q1 of 2008 of all CP’s for the new $ 550 million debt facility that was signed in December of 2007;
  • Successful IPO in April of 2008 listing GDR’s on the London Stock Exchange raising $ 100 million equity for the Partnership from new investors.

Mr. K.U. Kessel, Chief Executive Commenting on the results, said:

“The company worked diligently in preparation of the production phase. The focus of 2007 has been on:

1) finalizing the exploration of the Field, and on

2) contracting out all required infra structure – and processing projects as identified in the business plan.

With the signing of the new loan agreement in December of 2007 the company has for the first time tabbed international financial markets. With this new financing in place the partnership is confident its goals of significantly increasing production while finishing the infra structure-, transportation- and processing projects taken on will be realized both in 2008 and beyond.”

Enquiries to:

Analysts/Investors

Frank Monstrey, Chairman +44 1624 682 179
Kai-Uwe Kessel, CEO
Jan-Ru Muller, CFO

Brunswick Group LLP:

Michael Harrison +44 7834 502406
Patrick Handley 44 7974 982395
Carole Cable +44 7974 982458

These materials contain forward-looking statements regarding Zhaikmunai, our corporate plans, future financial condition, future results of operations, future business plans and strategies. All such forward-looking statements are based on our management’s assumptions and beliefs in the light of information available to them at this time. These forward-looking statements are, by their nature, subject to significant risks and uncertainties and actual results, performance and achievements may be materially different from those expressed in such statements. Factors that may cause actual results, performance or achievements to differ from expectations include, but are not limited to, regulatory changes, future levels of industry product supply, demand and pricing, weather and weather related impacts, wars and acts of terrorism, development and use of technology, acts of competitors and other changes to business conditions. Zhaikmunai undertakes no obligation to revise any such forward-looking statements to reflect any changes in Zhaikmunai’s expectations with regard thereto or any change in circumstances or events after the date hereof.