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Results of PetroKazakhstan Inc. activity for 1H 2007

Almaty, Kazakhstan – PetroKazakhstan Inc. (PetroKazakhstan) informs on results of company activity for 1H 2007. UPSTREAM REVIEW Exploration There are a total of 11 exploration wells drilled from January to June in 2007, those being three wells drilled within the License 260D-1, six wells within the License 1505 and two wells within the License 1504. During this period, 2D and 3D seismic datasets have been acquired in Karaganda and 1057 license blocks over 650 linear km and 200 sq. km. respectively. License 260D-1: one well was fractured and tested commercial oil flow and another one obtained low product oil flow. License 1505: one well tested commercial oil flow and another one is expected to be tested. License 1504: two wells were tested and two wells are planned to be fractured shortly. The drilling results not only increased PKKR reserves but also provided further exploration targets. The new reserves discovered in the first half year of 2007 are estimated to be 17 million barrels. Fields In Y2007 Company is planning to revise estimation of oil and gas reserves for whole Kumkol field. As per the work schedule AO NIPIneftegas produced the report on revised estimation of Kumkol field oil and gas reserves that was forwarded to Client’s experts for review and approvals. TOO Petroleum Geo Services provided structural imaging for further simulation with regard for key reflectors and correlation of pay beds. AO NIPIneftegas is working on assessment of oil recovery and 3-D hydrodynamic modeling. Also analysis of Maibulak, East Kumkol and North Nuraly oil and gas fields development will be carried out. Analysis of Maibulak field development was performed by Kaspimunaigas, the Institution, and reviewed at the meeting of Central Committee of Development, the Republic of Kazakhstan, dated 15.06.2007. As for East Kumkol direct negotiations with MEMR of the Republic of Kazakhstan are underway for entering into contract on subsoil use. In respect to North Nuraly the Central Committee of Development, the Republic of Kazakhstan, approved the pilot development project, arrangements for start-up of it are underway. In the first half of Y2007 28 wells including 21 operations and 7 explorations were drilled at fields under development. Program of operation wells fracturing initiated in Y2004 will be continued in Y2007. As per the schedule for the YTD 4 operations were fractured. As the result of ongoing geological studies new oil-bearing horizons were detected at Aryskum field under development. Thereby growth in oil and gas reserves at this field is expected. Re-estimation of hydrocarbon reserves started. Production During the 1H 2007, combined working interest production from all PetroKazakhstan Inc. assets (including PKKR, 50% share in JV Kazgermunai and Turgai Petroleum) totaled 26.137 mln barrels (or 3.374 mln tones) of oil, or an average of 144 401 barrels of oil per day (or 18 642 tones of oil per day), comparing to 145 978 bopd in the second quarter of 2006, and 141 861 bopd in the first quarter of 2006. Gas Utilization Projects As informed before, on June 15, 2006 MEMR of RK approved the program of PetroKazakhstan Kumkol Resources operated associated gas utilization. At present, in compliance with gas utilization program, works for construction of gas utilization facilities at Aryskum, Kyzylkia and Kumkol South started. Works related to installation of main process equipment completed, electric works and installation of instrumentation are in process. By attracting TOROMONT company, main works related to compressor installation were completed and pre-commissioning started. At this stage construction of Kyzylkiya to Aryskum gas line and gas injection lines from Aryskum compressors site to injection wells are completed. Completion of construction of all gas utilization project facilities for Kyzylkiya and Aryskum is scheduled for October, 2007, and for Kumkol South-East – December, 2007. DOWNSTREAM Refining In the 1H 2007, PKOP processed 16.05 mln barrels of oil (2.093 mln tones), comparing to 15.81 mln barrels of oil (2.061 mln tones)) in the 1H of 2006. In June of Y2007 the peak yield of high-octane gasoline at 60% of total amount of gasoline was first time achieved and light high-rate products ratio reached 64% of refined oil volume. Modernization East Chinese Design Institute CNPC developed a project of tech-economical background of a pre-feasibility for refinery enabling to increase of processing extend and improve quality of output (upgrading of operating facilities and construction of new ones is stipulated). Currently the project undergoes agreement phase. At present Beijing Research Institute for oil refining and petrochemistry is developing different options of Shymkent Refinery upgrading project. The working groups represented by shareholders (AO NC KazMunaiGas and CNPCI) and specialists working for the Refinery were set up for resolving of financial and technical issues. Pre-OVOS (pre-EIA) works and arrangements for public hearing for our refinery upgrading started. PetroKazakhstan Inc. is a vertically integrated energy company indirectly owned by CNPC and KMG. It is engaged in the exploration, development and production of oil and gas, refining of oil and the sale of oil and refined products. 07.08.2007

Resourse: PetroKazakhstan

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