Kazneftehim JSC (Kazakhstan) informs on test drilling of Tagan Yuzhnyi field

/KASE, June 6, 08/ - Kazneftehim JSC (Almaty), bonds of which are traded in the official list of Kazakhstan Stock Exchange (KASE) of category "A", provided KASE with the press release: Qoutation start Kazneftehim-Kopa LLP, an organization department of one of the biggest Kazakhstan chemical and petrochemical producers - Kazneftehim JSC, informed that an oil inflow was received as a result of test well drilling on Tagan Yuzhnyi ield (Atyrau region). The Panorama contacted General Director of KAZNEFTEHIM JSC Edyl Kirishev. "Five oil pools were tapped during the test works; probe and test works are being done on the lowest", - he said. Besides, he informed, that currently drilling is done on Kopa field (Aktobe region), listed on the balance of Kazneftehim-Kopa". Before the end of this year the company plans to drill seven wells on Tagan Yuzhyi field, and two wells on Kopa field. The number of wells to be drilled in 2009 depends directly on results of drilling in 2008. On the whole, according to his words, in compliance with the agreement with one of the services companies, the drilling program includes drilling of 18 wells on these two fields subject to Production Sharing terms. In accordance with this agreement, 7 wells are to be drilled on Yuzhnyi Tagan field, and 11 wells on Kopa field. The oil received will be paid to the customer as for the works. It is planned that in December 2008 Kazneftehim will start test drilling on Prigranichnoe field (West Kazakhstan), project works of which are conducted at the moment. This asset, listed on the balance of Uralneftegaz LLP, was acquired in 2007. It underwent seismics 3D. As informed, for development of Tagan Yuzhnyi, Kopa and Prigranichnoe fields the company engaged an international technical consultant that had prepared geological and hydrodynamical field development model projects. Kazneftehim concentrated on oil production, thanks to recently finished restructuring. This process involved selling service businesses, in particular: drilling, and autotransport and construction departments of the holding. Since now he company unites three directions. Fields development (Kazneftehim-Kopa, Uralneftegas LLP), petrochemistry - Kazchimvolokno and oil products trade (Kazneftehim TRANS LLP with oil refueling terminals at Ganyushkino station and Sagiz station and Kazneftehim Kommerts LLP). After the restructuring the company intends to unite the oil enterprises and organize its IPO in the future, and concentrate attention on high technological production and metaaramid fibers production. Taking into consideration the crisis in the country and global financial markets, and high price of hydrocarbons, Kazneftehim timely restructured its assets, which undoubtedly will bring positive affect on the company performance and its competitiveness worldwide. Qoutation end [2008-06-06]