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ForwardLookingStatements Certain statements contained herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied. Forward-looking statements involve risks and uncertainties, including but not limited to, such risks as are described in the Company's SEC filings and reports.
Highlights • Company Milestones • Reserves • Operations Plan • Infrastructure • Management • Financial Info
Company Milestones Financial • Reverse acquisition of an OTCBB shell company (11/03) • 4 rounds of Private Placements (1/04 through 12/05) • Additional Listing on German XETRA (05/04) • SB-2 registration of private placement shares declared effective (06/06) • Listing on AMEX under trading symbol KAZ (09/06) 2006 Operational • Completion of 3D seismic on the Extended Territory (03/06) • Spudding of Dolinnoe 6 (08/06) • Spudding of Kariman-2 (08/06) • Spudding of Emir-6 (10/06)
Emir Dolinnoe Aksaz Oil and Gas Reserves* *IAW Chapman Petroleum Engineering Report dated April 1, 2006, not including Extended TerritoryReserves are estimated remaining quantities of oil and gas anticipated to be recoverable from known accumulations, from a date forward.
Triassic formations Jurassic formations Borly Yessen Kariman Reserve Growth Potential* *IAW Chapman Petroleum Engineering Report Resources are defined as those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations. They are technically viable and economic to recover
Drilling: In accordance with the operations plan we will complete drilling and testing of the following 3 exploratory wells: Dolinnoe-6 Emir – 6 Kariman – 2 Workover Operations: Fracturing and Coil Tubing Acid Treatment Testing Dolinnoe-3 Dolinnoe-2 Aksaz-4 Operational Strategy for FY ’07(Ending March 31)
Oil Price (Brent) Discount Transportation to Mangyshlak station Netback Royalty (2%) Net Back Calculation Under the Export Quota $60 - $14.15 - $0.92 - $1 = $43.83 * Company is not subject to export rent tax during exploration stage** Export Quota provides higher revenues for similar volumes of production compared to selling oil on domestic market
Management Team Mr. Boris Cherdabayev – Chief Executive Officer. Mr. Cherdabayev is a prominent figure in Kazakhstan's energy sector with over 30 years experience in the international petroleum industry. Our CEO held a number of positions in oil and gas sector, to include VP for the National Oil and Gas company, and Director of the TengizChevroil LLP Mr. Askar Tashtitov – President. Mr. Tashtitov graduated from Yale University with a Bachelor of Arts degree in Economics and History. His working experience includes working for USAID-funded PA Government Services Inc. as a oil and gas project specialist and for BMB Munai as a financial analyst Mr. Gamal Kulumbetov – Chief Operating Officer. Mr. Kulumbetov held a number of positions, in various oil and gas companies, to include TengizChevroil, Halliburton and Big Sky Energy Mr. Sanat Kasymov – Chief Financial Officer. Mr. Kasymov held a number of positions in a various Kazakhstani financial institutions, to include Deloitte & Touche and Demir bank
Extension of the Exploration Stage till July 2009 Application for this second extension is underway and should be completed prior to the end of the current fiscal year.
Lifting Cost per BOE – $3.73 Domestic price per barrel – $27.40 (average) Export Price per barrel – tied to Brent We are not paying Export Rent Tax (33%) Average CAPEX per well - $7.5 mln Average CAPEX for workover - $507K Basic Project Economics
Earnings per Share Q2FY07 saw BMB Munai, Inc. produce first ever positive EPS
Financial Update *EBIDTA not accounting for one-time compensation expense
Liquidity • Company is listed on AMEX under a ticker symbol KAZ, and on Deutsche Börse’sXETRA SE code DL-,001 DMW US09656A1051 • Total issued and outstanding shares – 43,740,657 • Float – 22,754,932 (aprx. 52%)
Comparative Valuation Source: ATON
Our Competitive Strengths • Emerging Market Company headed by Kazakh Management and conforming to US GAAP and SEC Reporting Standards • A trend of decreasing G&A, lifting and transportation costs • Management is devoted to increasing shareholder value through operational efficiencies • A company with a depth of experience in operations, finance, government relations and managing risk of the emerging market
To maximize value to our shareholders To increase the reserves through continuation of exploration on the ADE Block and Extended Territory, resulting in reclassification of resources of the Extended Territory into various categories of reserves To prepare for transition to commercial production stage by July 2009 To seek value adding acquisitions Our Goals Are
