PetroKazakhstan has always been trying to substitute its production with new commercially valuable discoveries of fields. For instance, the Company continues to implement its exploration program, thus remaining the only large oil company operating in South-Turgai basin obligated to continue this program for complete utilization of the potential of the region. PKKR develops 6 fields including south-east part of Kumkol, Kumkol South, Kyzylkiya, Aryskum, Maibulak and North Nuraly fields.

 

As of January 1, 2009, PKKR’s total reserves of oil made up 93,266 thousand tons. This includes oil reserves in 7 fields: Kumkol, South Kumkol, Kyzylkiya, Aryskum, Maibulak, North Nuraly and East Kumkol.

 

As a result of geological surveys new oil-bearing stratum were discovered in Aryskum field. In 2008 the Company re-estimated its oil reserves in Aryskum which made up 3.9 million tons. The Company also estimated its reserves in Kyzylkiya field and began preparing a new development project.

 

With a view of clarifying and recovering oil and gas reserves in the fields under development in 2007 the Company drilled a total of 29 wells with a total penetration of 43,343 meters, of which 21 producing wells were put into operation thus increasing the production volume by an additional 46.9 thousand tons. By the end of 2008 the operating stock of producing wells in all fields under development totaled 345 wells. The operating stock of injection wells in the fields under development totaled 97 wells. For efficient utilization of the available stock PKKR carries out production stimulation operations. Among other things, the Company implements reservoir hydrofracturing and well acid treatment programs.

 

At the same time, PKKR prepares for commercial development of new fields. Ongoing are preparations for commercial development of East Kumkol. In 2008 the Company initiated a pilot operation in North Nuraly: commissioned 9 wells and completed research activities.

 

In 2008 the Company prepared a Tuzkol field pilot operation project and had it agreed with regulatory authorities. The design documentation has been approved by the Central Development Committee and will be implemented in 2009. In 2008 the Company completed its current estimation of reserves in Doshan field and commenced exploratory operations.