Kazmunaigaz Exploration Regulatory News (KMG)

PRESS RELEASE

KMG EP Board Meeting

Astana, 26 May 2010. The meeting of the JSC KazMunaiGas Exploration Production ("The Company", "KMG EP") Board of Directors ("the Board") took place following the yesterday's AGM.

At the meeting the Board agreed to adjust the 2010 production plan at the Company's key assets (Uzenmunaigas and Embamunaigas) from 9,200 to 9,082 thousand tonnes reflecting the loss of production caused by the industrial action at Uzenmunaigas earlier this year.

Furthermore, the Board decided to reduce this year's Capex from 95 bn Tenge (US$633m) to 83 bn Tenge (US$555m), including the reduction of expenditure on exploration to 4 bn Tenge (US$27m). This is mainly due to changes of the timetable of several construction projects and adjustments to the drilling program of the Company.

The Board considered a number of suggestions regarding changes to payment structure and salary increase for the employees of the production units of the Company and approved measures necessary to complete this work.

The Board of Directors of KMG EP has also considered a range of commercial issues, staffing and organizational matters.

Notes to Editors

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2009 was 11.5mmt (an average of 232kbopd) of crude oil, including the Company's share in Kazgermunai and CCEL. The volume of proved and probable reserves (2P) of KMG EP as at the end of 2009 was 234mmt (1.7bn barrels); while including the share of reserves from associates and joint ventures, preliminary about 2.2 bn barrels. The Company's shares are listed on Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. In July 2009 International rating agency Standard & Poor's (S&P) confirmed KMG EP's "BB+" corporate credit rating and assigned the Company "GAMMA-6" level.

For further details please contact us at:

KMG EP. Public Relations (+7 7172 97 7600)

Daulet Zhumadil

E-mail: pr@kmgep.kz 

KMG EP. Investor Relations (+7 7172 97 5433)

Asel Kaliyeva

E-mail: ir@kmgep.kz 

Pelham PR (+44 207 861 3147)

Elena Dobson

E-mail: Elena.dobson@pelhampr.com 

Forward-looking statements

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