Solid Increase in Reserves Leading to Strong Reserves Replacement Over Production

Zhaikmunai L.P.
(the “Partnership”)

SOLID INCREASE IN RESERVES LEADING TO
STRONG RESERVES REPLACEMENT OVER PRODUCTION

Zhaikmunai LP (LSE: ZKM), the oil and gas exploration and production enterprise, today announces an increase in reserves and strong reserves replacement and a further increase in production through its Gas Treatment Facility (GTF).

The independent Reserves Audit of its Chinarevskoye field in north-western Kazakhstan, as at 31 December 2010, was provided by petroleum consultants Ryder Scott Company, L.P. (“Ryder Scott”).

HIGHLIGHTS FROM THE 2010 RESERVES REPORT AUDIT

Proved plus probable gross reserves (2P) have increased by 11.9 mmboe (2.3%) to 538.6 mmboe (July 1, 2009: 526.7 mmboe)
Positive reserves replacement ratio of 208% based on a production of 5.7 mmboe during the period (July 1, 2009 – December 31, 2010);
Proved reserves have increased by 4.4 mmboe (3.2%) to 143.5 mmboe (July 1, 2009: 139.1 mmboe);
Probable reserves have increased by 7.5 mmboe (2.0%) to 395.1 mmboe (July 1, 2009: 387.6 mmboe);
The product mix between oil/condensate, LPG and dry gas remains comparable to previous reports, i.e. oil/condensate: 40%; LPG: 15%; and dry gas: 45%.

RYDER SCOTT FINDINGS

The Ryder Scott Reserves Report estimates that Zhaikmunai has the following gross reserves:

CATEGORY	31 December 2010	1 July 2009
Proved Reserves	143.5 mmboe	139.1 mmboe
Probable Reserves	395.1 mmboe	387.6 mmboe
Proved plus Probable (2P) Reserves	538.6 mmboe	526.7 mmboe

Zhaikmunai has changed its reserves reporting calendar to fall in line with international practice. i.e. it now reports as at 31 December instead of as at 1 July.

GAS TREATMENT FACILITY (GTF) UPDATE

Commissioning of the first train of the GTF has progressed further and test production of stabilised condensate, LPG (Liquid Petroleum Gas) and dry gas has continued since Zhaikmunai’s last GTF update and Q1, 2011 reporting of 27 May 2011;
Current average daily production rate of crude oil and GTF products (stabilised condensate, LPG and dry gas) averages between 16.000 boe and 17.000 boe, with a 50/50 split (crude oil versus GTF products);
Crude oil and stabilised condensate are being sold and delivered to various offtakers by rail after these products transit through the company-owned oil and condensate pipeline and rail terminal;
LPG is being transported by truck to different LPG loading terminals in the Uralsk region. LPG delivery has commenced and LPG is being sold domestically;
Dry gas is being sold and delivered through the tie-in point of Zhaikmunai’s gas pipeline to the Orenburg-Novopskov trunk gas pipeline. Payments have already been received from the offtaker for gas deliveries which started in May 2011;
Further progressive production ramp-up is scheduled with the on-going commissioning of the Amine and Sulphur Recovery Units designed to allow the treatment of sour feed gas.

Commenting on the 2010 Reserves Report, Kai-Uwe Kessel, CEO, said:

“The Reserves Report confirms, once more, the exceptional potential of the Chinarevskoye field and validates our continued focus on this asset. Replacement of our 2P reserves has grown faster than our production, which is in line with our expectations. Zhaikmunai is currently preparing an updated business plan, taking these new 2P reserves into account, as a basis for our future drilling programme and facility design. We are also planning further appraisal work once the GTF has reached the planned production ramp up in the weeks ahead.”

For further information please visit www.zhaikmunai.com.

For a pdf version of this press release please click here.

Further enquiries

Zhaikmunai LP
Bruno Meere, Investor Relations Officer
ir@nog.co.uk
+44 (0) 1624 68 21 79

Pelham Bell Pottinger
Philip Dennis
Elena Dobson
+44 (0) 207 861 32 32

Notes:

Proved and probable oil and gas reserves are estimated quantities of commercially producible hydrocarbons which the existing geological, geophysical and engineering data show to be recoverable in future years from known reservoirs.
Proved reserves reported by Ryder Scott, independent petroleum consultants, conform to the definition approved by the Society of Petroleum Engineers (“SPE”) and the World Petroleum Congress (“WPC”). The probable reserves reported by Ryder Scott conform to definitions of probable reserves approved by the SPE/WPC using the deterministic methodology.

About Zhaikmunai

Zhaikmunai is an independent oil and gas enterprise currently engaging in the exploration and development and production of oil and gas. It is listed on the London Stock Exchange (Ticker symbol: ZKM). Its principal producing asset is the Chinarevskoye Field located in northwestern Kazakhstan. Zhaikmunai L.L.P., a wholly-owned subsidiary of Zhaikmunai L.P., holds a 100% interest in and is the operator of the Production Sharing Agreement for the Chinarevskoye Field.

Forward-Looking Statements

Some of the statements in this document are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of the Partnership or its officers with respect to various matters. When used in this document, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should” and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcomes to differ materially from those suggested by any such statements.