ALMATY, Kazakhstan, Jan. 11 - BMB Munai, Inc. (OTC Bulletin Board: BMBM) announced today that the Company has successfully completed negotiations and executed and agreement with Great Wall Ltd., a Chinese drilling company. According to Contract terms Great Wall Ltd. will deliver two drilling rigs with derrick load capacity of 450 and 150 tons respectively. In accordance with the Contract, Great Wall Ltd. will provide drilling services for a period of one year with an extension option. The Company plans to drill exploratory oil and gas wells in the Dolinnoe field, as well as complete horizontal/directional drilling at existing wells in the Dolinnoe Field using the services of Great Wall Ltd.
Mr. Toleush Tolmakov, General Director of BMB Munai's operating subsidiary in Kazakhstan, stated, "We are pleased to secure the services of Great Wall Ltd. It was our desire to have two drilling rigs working in the Dolinnoe field at the beginning of January 2006. However, additional time has been required by Great Wall Ltd to obtain permits from the Republic of Kazakhstan customs office. It appears that Great Wall Ltd. will be ready to commence drilling activities in March 2006. Although these initial delays will prevent us from realizing our production goals at our fiscal year end in March 2006, we believe that during the term of our contract with Great Wall Ltd. we will be able to reach the higher production targets we have set for March 2007."
BMB Munai is an independent oil and gas company engaged in the exploration, development and production of crude oil and natural gas in western Kazakhstan. The Company maintains administrative offices in Salt Lake City, Utah and Almaty, Kazakhstan.
Contacts:
In the US: Adam R. Cook, Corporate Secretary
(801) 355-2227, E-mail: USoffice@bmbmunai.com
In Kazakhstan: Askar Tashtitov, Financial Analyst
+7 3272 588-517, E-mail: KZoffice@bmbmunai.com
The information contained in this release includes forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. 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, risks described in the Company's periodic reports on file with the Securities and Exchange Commission.
