Reserves

In Kazakhstan, the Company owns its current interests through a wholly–owned Kazakh, limited liability partnership named BN Munai LLP (“BNM”).  As a result of this ownership, the Company currently has a 100% interest in, and is operator of, a proven shallow gas field (the Kyzyloi Field).  BNM also has a 100% interest in the surrounding Akkulka Exploration Licence and Contract area, and a 100% interest in the Kul–Bas Exploration and Production Contract area.  These lands are all within the Aktobe Oblast region of western Kazakhstan. 

 

The McDaniel Reserve Report estimates that Tethys has proved plus probable reserves of 64.5 Bcf (1.8 Bcm) of natural gas in the Kyzyloi Field and the Akkulka Block, which are expected to commence production in July 2007.  See “Statement of Reserves Data and Other Related Information”. 

 

 

Natural Gas (MMcf)

March 31, 2007

 

 

Forecast Prices

 

Constant Prices

 

 

Gross

(MMcf)

 

Net

(MMcf)

 

Gross

(MMcf )

 

Net

(MMcf)

 

 

 

 

 

 

 

 

 

Reserves Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROVED

 

 

 

 

 

 

 

 

Developed Producing ................................................

 

 

 

 

Developed Non–Producing.......................................

 

26,526

 

25,995

 

26,526

 

25,995

Undeveloped...............................................................

 

12,701

 

12,447

 

12,701

 

12,447

TOTAL PROVED ..............................................................

 

39,227

 

38,442

 

39,227

 

38,442

TOTAL PROVED PLUS PROBABLE .............................

 

65,804

 

64,488

 

65,804

 

64,488

TOTAL PROVED PLUS PROBABLE PLUS POSSIBLE .......................................................................................

 

87,539

 

85,788

 

87,539

 

85,788

 

  

'Net' means net working interest after royalties.

 

The reserves analysed to date are only for the east Aral properteis in Kazakhstan. Due to the acquisition of Aral Vostochniy being recent a reserve report has not yet been carried out on this property. Also, no reserve report has been carried our in Tajikistan.