Nostrum Oil & Gas Plc

Zhaikmunai L.P. to list on London Stock Exchange at US$10 per GDR

This announcement is an advertisement and not a prospectus and investors should not subscribe for or purchase any limited partnership interests comprising common units in the form of global depositary receipts (GDRs) or other securities referred to in this announcement except on the basis of information in the prospectus to be published by Zhaikmunai L.P. on the date hereof in connection with the admission of its GDRs or other securities to the Official List of the Financial Services Authority. Copies of the prospectus will, following publication, be available from Zhaikmunai L.P.’s principal place of business. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any GDRs or other securities of Zhaikmunai L.P., nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of Zhaikmunai L.P.

London,  28 March 2008:  Zhaikmunai L.P. (“Zhaikmunai” or the “Partnership”), the holding entity of an independent oil and gas enterprise operating in Northwestern Kazakhstan, today announces an offering of global depositary receipts (“GDRs”) at a price of US$10 per GDR and the commencement of conditional dealings on the London Stock Exchange. This follows the successful completion of bookbuilding among institutional investors and the granting of the necessary waivers and approvals from Khazakstan’s Ministry of Energy & Mineral Resources and KazMunaiGaz National Company.

The offer takes the form of a primary offering of GDRs representing approximately 9.1 per cent of the enlarged equity of the business. The GDRs have been admitted to listing on the Official List of the UK Financial Services Authority and admitted to trading on the London Stock Exchange under the symbol “ZKM”.

Highlights of the Offering:

* Price of US$10 per GDR, corresponding to an offer size of US$100m

* Offer of 10 million GDRs representing 9.1 per cent of the enlarged equity of Zhaikmunai L.P.

* Offer to value enlarged equity of Zhaikmunai L.P. at US$1.1bn

* Conditional dealings in GDRs of Zhaikmunai L.P.  commence on 28 March, 2008

Background:

Zhaikmunai L.P. announced its intention to launch a global offering on 5 November, 2007. On 18 December, 2007 Zhaikmunai L.P. announced that it had decided to extend its IPO schedule pending discussions with Kazakhstan’s Ministry of Energy and Natural Resources and KazMunaiGaz National Company.

The decision to extend the IPO schedule followed correspondence with Kazakhstan’s Ministry of Energy and Natural Resources and KazMunaiGas National Company in respect of the Ministry’s pre-emptive acquisition right granted under Article 71 of the Subsoil Law.  Pursuant to this correspondence, Zhaikmunai L.P. made a formal application to the Ministry to waive the pre-emption right in December 2007. The waiver was duly granted on 13 March 2008.

Frank Monstrey, Chairman of the general partner of Zhaikmunai, said:

“We have held constructive and necessary discussions with the Ministry. We always said we were optimistic they would go well and that we would be able to offer the international investment community the opportunity to take part in our IPO. I am delighted that we are now able to proceed. This global offering marks an exciting stage in Zhaikmunai’s development. We have a strong, high-quality reserve base, good upside potential and a proven management team. The listing will help Zhaikmunai to achieve its goals of increasing oil production, improving the existing reserve base, exploiting our gas reserves and developing transport links.”

ING has acted as Lead Manager and Sole Bookrunner for the Offering. Mirabaud Securities and UniCredit CAIB UK Ltd have acted as Co-lead Managers.

Here you can download the pdf-file from this press release.

Notes to editors

About Kazakhstan

Kazakhstan ranks ninth in the world by oil reserves and eleventh by oil and gas reserves and is the second biggest oil producer (after Russia) among the former Soviet republics. It has the Caspian region’s largest recoverable crude oil reserves. Kazakhstan’s proved oil and gas reserves amounted to 39.8 billion barrels and 105.9 trillion cubic feet respectively as of 31 December 2006, according to the BP Statistical Review.

About the Group

Zhaikmunai’s name is derived from “Zhaik”, being the Kazakh name for the Ural River, and “munai” which means oil or hydrocarbon in Kazakh. The Partnership is the indirect holding company of an independent oil and gas business (the “Group”) engaged in the exploration, production and sale of crude oil and gas condensate in northwestern Kazakhstan. The Group’s licence area is the Chinarevskoye field, which is located in the northern part of the oil-rich Pre-Caspian Basin. The Group entered into a Production Sharing Agreement with the Republic of Kazakhstan in 1997.

The Chinarevskoye field is located near the Kazakhstan-Russian border and close to several major pipelines. Based on a reserve report prepared by Ryder Scott Company L.P., Zhaikmunai’s estimated gross proven plus probable hydrocarbon reserves as at 1 July 2007 were 397 million boe. “Gross” refers to such amount being inclusive of royalties and amounts due in kind or cash to the Kazakhstan government under the Production Sharing Agreement. Zhaikmunai began its first crude oil production in October 2000 and produced approximately 1,848,000 barrels of crude oil in 2007. Currently all crude oil production is exported. Gas sales are expected to begin following completion of a gas treatment facility by October 2008. The Group has 15 existing wells and four exploration wells under drilling and has invested approximately US$386 million in drilling and field infrastructure since its current management took control in 2004.

For the first eleven months of 2007, the Group had revenues of US$97.2m and EBITDA of US$59.2m compared with revenues of US$51.9m and EBITDA of $32.2m for the same period of 2006. The Group currently transports its crude oil by truck to a rail loading terminal 100km away in Uralsk, close to the Russian border. Zhaikmunai is constructing an oil pipeline from the Chinarevskoye field to the rail connection near Uralsk along with a new receiving oil loading terminal at this connection which will allow it to deliver its oil directly to the loading terminal for export by rail.

About the management

Mr. Frank Monstrey, 42, chairman of Zhaikmunai L.P., has 20 years experience in corporate finance and private equity and has been active in Kazakhstan since 1994. He is supported by a highly experienced management team led by Zhaikmunai’s chief executive Mr. Kai-Uwe Kessel. A graduate of the Moscow Academy of Oil and Gas, the German-born Mr Kessel has worked in the industry for 22 years and has held senior positions with EEG (Germany), Gaz de France and the Kazakhstan joint venture KazGermunai, where he was a member and chairman of the board.

Enquiries:

Media Contact:

Brunswick  +44 20 7404 5959
Michael Harrison (Mob: + 44 7834 502406)
Carole Cable (Mob: +44 7974 982458)

ING

Mark Martin
Chris Godman
+44 20 7767 6437

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.

These forward-looking statements speak only as of the date of this document. The Partnership expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in the Partnership’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

These materials are not an offer for sale of the securities in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Partnership does not intend to register any portion of the offering in the United States or to conduct a public offering of the securities in the United States.

This communication is directed only at (i) persons who are outside the United Kingdom, (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order (all such persons together being referred to as “relevant persons”).  Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

ING, Mirabaud Securities and UniCredit CAIB UK Ltd are acting exclusively for the Partnership and the interest holders and no one else in connection with the Offering. They will not regard any other person (whether or not a recipient of this announcement) as their respective clients and will not be responsible to anyone other than the Partnership for providing the protections afforded to their respective clients nor for giving advice in relation to the Offering, the contents of this announcement or any transaction or arrangement referred to herein.