SOURCE: Zhaikmunai LP

June 27, 2011 02:05 ET

Zhaikmunai-2010 Reserves Report Audit Highlights

ISLE OF MAN, UNITED KINGDOM--(Marketwire - Jun 27, 2011) -



                         Zhaikmunai L.P.
                       (the "Partnership")

              SOLID INCREASE IN RESERVES LEADING TO
          STRONG RESERVES REPLACEMENT OVER PRODUCTION

Zhaikmunai LP (LSE: ZKM), the oil and gas exploration and production
enterprise, today announces an increase in reserves and strong reserves
replacement and a further increase in production through its Gas
Treatment Facility (GTF).

The independent Reserves Audit of its Chinarevskoye field in
north-western Kazakhstan, as at 31 December 2010, was provided by
petroleum consultants Ryder Scott Company, L.P. ("Ryder Scott").

HIGHLIGHTS FROM THE 2010 RESERVES REPORT AUDIT

* Proved plus probable gross reserves (2P) have increased by 11.9
mmboe (2.3%) to 538.6 mmboe (July 1, 2009: 526.7 mmboe)

* Positive reserves replacement ratio of 208% based on a production
of 5.7 mmboe during the period (July 1, 2009 - December 31, 2010);

* Proved reserves have increased by 4.4 mmboe (3.2%) to 143.5 mmboe
(July 1, 2009: 139.1 mmboe);

* Probable reserves have increased by 7.5 mmboe (2.0%) to 395.1
mmboe (July 1, 2009: 387.6 mmboe);

* The product mix between oil/condensate, LPG and dry gas remains
comparable to previous reports, i.e. oil/condensate: 40%; LPG: 15%; and
dry gas: 45%.

RYDER SCOTT FINDINGS

The Ryder Scott Reserves Report estimates that Zhaikmunai has the
following gross reserves:



CATEGORY                      31 December 2010       1 July 2009

Proved Reserves                    143.5 mmboe       139.1 mmboe
Probable Reserves                  395.1 mmboe       387.6 mmboe
Proved plus Probable (2P) Reserves 538.6 mmboe       526.7 mmboe

Zhaikmunai has changed its reserves reporting calendar to fall in line
with international practice. i.e. it now reports as at 31 December
instead of as at 1 July.

GAS TREATMENT FACILITY (GTF) UPDATE

* Commissioning of the first train of the GTF has progressed further
and test production of stabilised condensate, LPG (Liquid Petroleum
Gas) and dry gas has continued since Zhaikmunai's last GTF update and
Q1, 2011 reporting of 27 May 2011;

* Current average daily production rate of crude oil and GTF
products (stabilised condensate, LPG and dry gas) averages between
16.000 boe and 17.000 boe, with a 50/50 split (crude oil versus GTF
products);

* Crude oil and stabilised condensate are being sold and delivered
to various offtakers by rail after these products transit through the
company-owned oil and condensate pipeline and rail terminal;

* LPG is being transported by truck to different LPG loading
terminals in the Uralsk region. LPG delivery has commenced and LPG is
being sold domestically;

* Dry gas is being sold and delivered through the tie-in point of
Zhaikmunai's gas pipeline to the Orenburg-Novopskov trunk gas pipeline.
Payments have already been received from the offtaker for gas
deliveries which started in May 2011;

* Further progressive production ramp-up is scheduled with the
on-going commissioning of the Amine and Sulphur Recovery Units designed
to allow the treatment of sour feed gas.

Commenting on the 2010 Reserves Report, Kai-Uwe Kessel, CEO, said:"The
Reserves Report confirms, once more, the exceptional potential of
the Chinarevskoye field and validates our continued focus on this
asset. Replacement of our 2P reserves has grown faster than our
production, which is in line with our expectations. Zhaikmunai is
currently preparing an updated business plan, taking these new 2P
reserves into account, as a basis for our future drilling programme and
facility design. We are also planning further appraisal work once the
GTF has reached the planned production ramp up in the weeks ahead."

For further information please visit  www.zhaikmunai.com .

Further enquiries
Zhaikmunai LP
Bruno Meere, Investor Relations Officer
 Investor_relations@zhaikmunai.com   +44 (0) 1624 68 21 79

Pelham Bell Pottinger
Philip Dennis
Elena Dobson                       +44 (0) 207 861 32 32

Notes:

* Proved and probable oil and gas reserves are estimated quantities
of commercially producible hydrocarbons which the existing geological,
geophysical and engineering data show to be recoverable in future years
from known reservoirs.

* Proved reserves reported by Ryder Scott, independent petroleum
consultants, conform to the definition approved by the Society of
Petroleum Engineers ("SPE") and the World Petroleum Congress ("WPC").
The probable reserves reported by Ryder Scott conform to definitions of
probable reserves approved by the SPE/WPC using the deterministic
methodology.

About Zhaikmunai

Zhaikmunai is an independent oil and gas enterprise currently engaging
in the exploration and development and production of oil and gas. It is
listed on the London Stock Exchange (Ticker symbol: ZKM). Its principal
producing asset is the Chinarevskoye Field located in northwestern
Kazakhstan. Zhaikmunai L.L.P., a wholly-owned subsidiary of Zhaikmunai
L.P., holds a 100% interest in and is the operator of the Production
Sharing Agreement for the Chinarevskoye Field.

Forward-Looking Statements

Some of the statements in this document are forward-looking.
Forward-looking statements include statements regarding the intent,
belief and current expectations of the Partnership or its officers with
respect to various matters. When used in this document, the
words"expects,""believes,""anticipates,""plans,""may,""will,""should"
and similar expressions, and the negatives thereof, are intended to
identify forward-looking statements. Such statements are not promises
or guarantees, and are subject to risks and uncertainties that could
cause actual outcomes to differ materially from those suggested by any
such statements.


                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

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