ISLE OF MAN, UNITED KINGDOM--(Marketwire -06/07/12)- Zhaikmunai LP (ZKM.IL), the oil and gas exploration and production enterprise, is pleased to announce production rates of 1,184 barrels of crude oil from Well #24. These production rates exceeded expectations by 50%. Well #24 is located in the north-eastern part of its Chinarevskoye field in Kazakhstan and is currently characterized as follows:

* Formation: Lower Carboniferous Tournaisian carbonate

* Initial production rates (at wellhead pressure of 26 bars and at

choke size of 18mm):

* Crude oil: 1,184 barrels of oil per day

* Associated gas: 89,285 cubic meters per day

EXPECTED ADDITIONAL 25% TO 45% PRODUCTION RATES

The afore-mentioned production rates were obtained from relatively low permeability reservoir intervals (0.5-5.0 mD). Preparation for the perforation of the high permeability intervals of the reservoir is currently underway and will likely increase the production rates by some 25% to 45% to an expected 1,500 to 1,700 barrels of oil per day.

NEW SIDE-TRACKING TECHNOLOGY

Well #24 was originally drilled as a production well in 2004. This well represented a low cost opportunity to increase production and, as a result, a decision was made in 2011 to halt existing production and to side-track the original well. Zhaikmunai applied side-tracking and well stimulation technology to the well and penetrated the reservoirs at an angle of 60 degrees to provide enhanced access to the reservoir. This technology had previously not been used on the field.

Kai-Uwe Kessel, CEO of Zhaikmunai, commented:"Well #24 gave us the opportunity to test new side tracking technology on an old existing well. The result has been initial production rates exceeding our expectations. We now look forward to the tie-in of well #24 to the Oil Treatment Facility (OTF) following the scheduled perforation process of the high permeability intervals of the reservoir."