OREANDA-NEWS.SC KazMunaiGas Exploration Production ("KMG EP" or the "Company") announces the results of the reserves auditas at 31 December 2013 performed by the independent consultant Millerand Lents, Ltd. ("MLL") at Ozenmunaigas JSC ("OMG"), Embamunaigas JSC ("EMG"), and Ural Oil and Gas LLP ("UOG" where KMG EP holds a 50% stake) fields.

According to the MLL report there were no significant changes in hydrocarbon reserves as at the end of 2013 compared to the reserves as at the end of 2012.

Proved (1P) reserves increased by 4.6% or 5.4 million tonnesto122.1 million tonnes (902 million barrels);

Proved plus probable (2P) reserves increased by 0.6% or 0.9 million tonnes to 148.8 million tonnes (1,101 million barrels);

Proved, probable plus possible (3P) reserves declined by 0.4% or 0.7 million tonnes to 182.7million tonnes (1,349 million barrels).

The increase in 1P and 2P reserves is mainly due to:

consideration of long-term plans for drilling of new wells and geological and technical measureson producing assets;

revision of estimated annual production decline rate;

positive test results of exploration well sat Rozhkovskoye field (Fedorovskiy block).

The results of the assessment of liquid hydrocarbons as at 31 December 2013

Million tonnes

Million barrels

1P

2P

3P

1P

2P

3P

Reserves as at 31/12/2012

116.8

147.9

183.4

863

1,092

1,351

Production

8.0

8.0

8.0

59

59

59

Reserves replacement

13.4

8.9

7.3

98

68

56

Reserves as at 31/12/2013

122.1

148.8

182.7

902

1,101

1,349

Assessment of 2P reserves of joint ventures were made separately by independent auditors. KMG EP's share in overall 2P reserves of Kazgermunai (KGM) (50% stake), CCEL (CCEL) (50% stake) and Petrokazakhstan Inc. (PKI) (33% stake) as at the end of 2013 amounted to 51 million tonnes (365 million barrels). Therefore, consolidated 2P reserves of KMG EP including its stakes in KGM, CCEL, and PKI as at the end of 2013 amounted to 200 million tonnes (1,466 million barrels).

Consolidated reserves

Million tonnes

Million barrels

1P

2P

1P

2P

KMG EP

122

149

902

1,101

KGM 50%, CCEL 50%, PKI 33%

39

51

283

365

Consolidated reserves

161

200

1,185

1,466

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2013 was 12.4million tonnes (an average of 251kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The Company's total consolidated volume of proved and probable reserves including shares in the associates, as at the end of 2013 was 200 million tonnes (1.5bnbbl), out of which 148.8 million tonnes (1.1bnbbl) relates to Ozenmunaigas, Embamunaigas, and UOG (Rozhkovskoye field, Fyodorovskiy block). The Company's shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over USD 2bn in its IPO in September 2006. The International rating agency Standard & Poor's (S&P) confirmed KMG EP's "BBB-" corporate credit rating in May 2013.