Block brief introduction

TethysAralGaz ("TAG"), the Company's wholly owned Kazakh subsidiary, has received State approval from The Ministry of Oil and Gas ("MOG") for the Pilot production project for the Doris oil discovery on the Akkulka field.

This approval grants the right for oil production on the Akkulka field during the exploration period and allows the Company to install and operate production facilities for the planned 3,000-4,000 bopd production target planned for the second quarter of 2011. Currently TAG is producing under Test Production at a permitted level of 750 bopd. once the pilot program is completed the relevant final reserve calculations will be submitted to The Ministry of Oil and Gas to receive a Production Contract that will allow for full field development and foreign or domestic sales. The Company is expected to apply for a Production Contract after the appraisal program for the Doris Oil discovery is complete which is forecast for the end of 2011.

The AKD03 introduction

The AKD03 (Dione) exploration well has been drilled to a depth of 3,975 meters and will now undergo a comprehensive testing program on up to eight separate zones that have been identified on logs. Testing can commence once approval has been granted by the Kazakh State, which is likely to take up to a month to obtain. A further potential hydrocarbon bearing sand was identified at the base of the well but due to challenging drilling conditions in this area it was decided to stop and test the zones already identified.