KMG EP Reserves Update as at 31 December 2013

JSC KаzМunaiGas Exploration Production (“KМG EP” or the “Company”) announces the results of the reserves audit as at 31 December 2013 performed by the independent consultant Miller and Lents, Ltd. (“MLL”) at Ozenmunaigas JSC (“OMG”), Embamunaigas JSC (“EMG”), and Ural Oil and Gas LLP (“UOG” where KMG EP holds a 50% stake) fields. 

According to the MLL report there were no significant changes in hydrocarbon reserves as at the end of 2013 compared to the reserves as at the end of 2012.

• Proved (1P) reserves increased by 4.6% or 5.4 million tonnes to 122.1 million tonnes (902 million barrels);

• Proved plus probable (2P) reserves increased by 0.6% or 0.9 million tonnes to 148.8 million tonnes (1,101 million barrels);

• Proved, probable plus possible (3P) reserves declined by 0.4% or 0.7 million tonnes to 182.7 million tonnes (1,349 million barrels).

The increase in 1P and 2P reserves is mainly due to:

• consideration of long-term plans for drilling of new wells and geological and technical measures on producing assets;

• revision of estimated annual production decline rate;

• positive test results of exploration wells at Rozhkovskoye field (Fedorovskiy block).

 Source

The results of the assessment of liquid hydrocarbons as at 31 December 20131 

1 The assessment was made based on the data available as at 31 December 2013. Any further changes of economic parameters and assumptions will be included in the 2014 reserves report.