JSC KazMunaiGas Exploration Production

Kazakhstan investment conference - Visor CapitalJune 2008

2

Important Notice

Forward-looking statements

This document includes statements that are, or may be deemed to be, ‘‘forward-looking statements’’. These forward-looking statements can be identified by the use of

forward-looking terminology, including, but not limited to, the terms ‘‘believes’’, ‘‘estimates’’, ‘‘anticipates’’, ‘‘expects’’, ‘‘intends’’, ‘‘may’’, ‘‘target’’, ‘‘will’’, or ‘‘should’’ or,

in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These

forward-looking statements include all matters that are not historical facts. They include, but are not limited to, statements regarding the JSC KazMunaiGas Exploration

Production (“Company”) intentions, beliefs and statements of current expectations concerning, amongst other things, the Company’s results of operations, financial

condition, liquidity, prospects, growth, strategies and as to the industries in which the Company operates. By their nature, forward-looking statements involve risk and

uncertainty because they relate to future events and circumstances that may or may not occur. Forward-looking statements are not guarantees of future performance

and the actual results of the Company’s operations, financial condition and liquidity and the development of the country and the industries in which the Company

operates may differ materially from those described in, or suggested by, the forward-looking statements contained in this document. The Company does not intend,

and does not assume any obligation, to update or revise any forward-looking statements or industry information set out in this document, whether as a result of new

information, future events or otherwise. The Company does not make any representation, warranty or prediction that the results anticipated by such forward-looking

statements will be achieved.

Cautionary Note to US Investors

The US SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that the company has demonstrated by actual production or

conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The crude oil reserves of Company within this

document have been estimated by Gaffney, Cline & Associates (‘‘GCA’’) according to standards established by the Society of Petroleum Engineers (‘‘SPE’’) and the

World Petroleum Congresses (‘‘WPC’’) and thus proved reserves may differ from those estimated according to the definitions of the US SEC. Further, the Company

uses certain terms in this document in referring to the Company’s reserves, such as ‘‘probable’’ or ‘‘possible’’ reserves, that the US SEC’s guidelines would prohibit it

from including in filings with the US SEC if the Company were subject to reporting requirements under the US Exchange Act. Prospective investors should read ‘‘The

Company—Company’s Reserves’’ section in IPO prospectus and the report of GCA, an international oil and gas consultant, on the Company’s reserves, included in

this document (the ‘‘GCA Report’’), for more information on the Company’s reserves and the reserves definitions the Company uses.

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KMG EP at a glance

4

History of KMG E&P

• 1911: Beginning of production in Kazakhstan

• 2004: Creation of KMG E&P: merger of UzenMunaiGas (“UMG”) and EmbaMunaiGas (“EMG”)

• 2006: IPO and London listing of KMG E&P

• 2007: Acquisition of 50% stakes in Kazgermunai and CCEL (Karazhanbasmunai)

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KMG EP at a glance

Source: MEMRNote: KMG EP production converted using a factor of 7.36 boe per tonne., KGM -7.62, Karazhanbasmunai - 6.68, others - 7.33

Top Kazakh operating entities (mbpd, 2007)

267

240

232

192

118

115

74

71

64

40

18

134

0 50 100 150 200 250 300

Tengizchevroil

KMG EP+50%KGM+ 50% KBM

KPO

KMG EP

Aktobemunaigas

Mangistaumunaigas

PKZ Kumkol

Turgai-Petroleum

Kazgermunai

Karazhanbasmunai

Kazakhoil-Actobe

Others

target 33% of 50%

target 33%

50% acquired in Q2-07

target 50%

• Upstream, onshore Kazakhstan

• 2P oil reserves– 1.8 billion bbl (R/P 25 years)

– over 2 billion bbl inclusive of interest in Kazgermunai and CCEL (Karazhanbasmunai)(1)

• Production – 192 mbpd in 2007

– 240 mbpd (proforma inclusive of interest in Kazgermunai and Karazhanbasmunai(1))

• Revenue(2) in 2007 – USD 3.97 bn

• Net income(2) in 2007 – USD 1.28 bn

• Majority shareholder – state owned NC KazMunaiGas (61% of ordinary shares)

50% acquired in Q4-07

Note:(1) KMG EP acquired a 50% stake in Kazgermunai in April 2007 and a 50% stake in CCEL (Karazhanbasmunai) in December 2007(2) Converted from Tenge at KZT/US$ 122,55

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RUSSIA

TURKMENISTAN

UZBEKISTAN

KYRGYZSTAN

CHINA

KAZAKHSTAN

Kazgermunai 50%

Turgai basin

Pre-Caspian basin

South Mangyshlak basin

Embamunaigas

Uzenmunaigas

Karazhanbasmunai50%

KMG EP on the map

Reserves, according to SPE

Embamunaigas and Uzenmunaigas

mln.bbl mln.bbl1Р 102 752

3Р 34.4 230.0

2Р 240 1,7673Р 283 2,079

Kazgermunai (50%)*1Р 12.1 92.32Р 20.3 154.9

Karazhanbasmunai (50%)*1Р 27.2 181.92Р 32.8 219.2

Note:* The reserves are as of 31/12/2007 for Embamunaigas and Uzenmunaigas, as of 30/09/06 for Kazgermunai, as of 31/12/06 for Karazhanbasmunai

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Grow and replace reserves

Cost and asset rationalisation

Environmental improvements

Maintain production in existing fields

• Exploit the advantages of the Relationship Agreement

with NC KMG in respect of existing assets and unlicensed

blocks

• Selective acquisitions in Kazakhstan and abroad

• Continue exploration efforts on existing and new blocks

• Sustain optimal production level from the existing reserve

base over the medium term

• Continue the use of secondary and enhanced oil recovery

techniques

• Optimisation of production costs and capex over the medium

term

• Asset Optimisation Programme underway to divest non-core

subsidiaries

• Policies under implementation to meet international environmental, labour, HR and safety standards

Strategy review

Strategy Implementation

• Acquisition of 50% stakes in KGM, CCEL, potential acquisitions are under review

• Uzen Field Development Plan Review and 2P reserves growth

• Exploration on sub-salt structures

• Stable production level

• Extension of production plateau by additional 5+ years

• Operational expenses growth below inflation• Stable capex at core assets

• A number of non-core and auxiliary assets were realized via tender procedures

• New equipment for waste cleaning is procured

• Gas utilisation programme is being implemented

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Optimisation of the existing operations

Exploration program

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• 7 fields

• 3,605 producing wells, 1,188 injection wells*

• 2P oil reserves as at 31.12.2007: 1.38 bln bbl

• Oil production for 2007: 136 mbpd

• Reserves life: 28 year

Uzenmunaigas (UMG)

Embamunaigas (EMG)

• 37 fields• 2,167 producing wells, 410 injection wells*• 2P oil reserves as at 31.12.2007: 0.39 bln bbl• Oil production for 2007: 57 mbpd• Reserves life: 18 year

Key goals:

• Sustaining optimal production level

• Cost optimisation

KMG EP: oil production, mbpd

106124 132 136 136

5556 56 57

53

0

20

40

60

80

100

120

140

160

180

200

2003 2004 2005 2006 2007

Uzenmunaigas (UMG) Embamunaigas (EMG)

159

192179

188 192

Core assets: Uzenmunaigas and Embamunaigas

* As of the end of 2006.

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Optimization of development of Uzen field

The Company’s largest field

• Accounts for 70% of total 2P reserves and 66% of production

• Producing since 1965, average water cut 80%

• Permeability varies from 10mD to 1500mD, about 60% of remaining reserves contained in low-permeability reservoirs

Production optimization program

• Updated reserve estimates and feasibility studies, using geostatic and simulation reservoir models

• New programme anticipating tighter drilling pattern and optimized water flood system

• Expected outcomes

– extended production plateau

– increased projected reserve recovery: from 42.2% to 45.9%

Field outline and anticlines

KaramandybasAnticline 39km x 9km

Source: Gaffney Cline & Associates report

East-west cross section: 25 horizons, 852m-1700m

Source: Gaffney Cline & Associates report

10

11

Embamunaigas and Uzenmunaigas: 18% increase in 2P reserves

Reserves Summary: Embamunaigas and Uzenmunaigas

AdjustmentsReservesat 31/12/2006 Production absolute %

Reservesat 31/12/2007

1P, mln.tonnes2P, mln.tonnes3P, mln.tonnes

93.1 203.2 288.0

9.53 18.5 46.34.05

20231.4

102.1 240.0282.5

1P, mln.bbls2P, mln.bbls3P, mln.bbls

685.41,494.92,118.7

70.1 136.3342.330.6

20231.4

751.61,767.12,079.2

1P reserves do not include reserves producible after the contract expiry date, which is the main reason for the significant difference between 1P and 2P reserves

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Exploration Projects

Exploration

1. R-9

2. Liman

3. Taisoigan

4. Adjacent areas of Uzen and Karamandybas fields

Additional Exploration

1. S.Nurzhanov

2. SW Kamyshitovy and SE Kamyshitovy;

3. Zhanatalap;

4. Western Prorva

NC KMG has applied for the Temir block subsoil use rights on behalf of KMG EP.

УЗЕНЬУЗЕНЬ -- КАРАМАНДЫБАСКАРАМАНДЫБАС

Subsalt exploration

2007- 2008: seismic studies, data processing and interpretation, preparation for subsalt drilling

2009: drilling of 2 wells

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13

Acquisitions

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KMG EP: unique advantages for acquisitions in Kazakhstan

• “Article 71” (preemption right)

• Services agreement between KMG EP and NC KMG regarding on-shore assets

• Good knowledge of Kazakhstan

• Focus on shareholder value

• No obligation to acquire if a transaction terms are not attractive for shareholders

• Acquisitions are subject to approval by INEDs and (in certain cases) by minority shareholders

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Russia

Uzbekistan

KAZAKHSTAN

UA

S

BTC

Mangistaumunaigas: •Production: 5.7 mln tonnes

Block TemirUrihtau:• Gas and gas condensate

Block Sarkamys Karaton:

Kazturkmunai, 51%• 9 fields• Production: 0,25 mln tonnes

Kazakhoil Aktobe Ltd, 50%• Fields: Alibekmola, Kozhasai• Production: 0,87 mln tonnes

CPC

Caspian Sea

= field = block

CCEL (Karazhanbasmunai), 50%

Uzenmunaigas

Embamunaigas

PetroKazakhstan Inc, 33%

Kazgermunai, 50%

Selected acquisition targets

Acquisition targets

Potential acquisition targets

Oil production for the companies : Mangistaumunaigas, Kazakhoil Aktobe, Kazturkmunai for 2007

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Acquisition impact : KGM and CCEL

Reserves +21% 50% share in KGM 2P reserves – 155 mn bbl, in CCEL – 219 mn bbl(1)

Production +25% 50% share in daily production: KGM -32kbopd, CCEL – 18kbopd (2)

Net income, 2007Contribution in 2007 to KMG EP P&L of US$225.2 million less non-cash accounting adjustments of US$79.1 million+US$146 mn.

Net income, Q1-08

Dividends

KGM contribution to KMG EP P&L of US$75.6 mln.CCEL contribution to KMG EP P&L of US$5.2 mln. representing one quarter of the interest portion of the US$26.2m annual priority return, accrued as interest income.

+US$80 mn.

Dividends (KMG EP’s share) :

- US$300 million in November 2007

- US$ 75 million in March 2008US$375 mn.

1) The reserves as of 30/09/06 for Kazgermunai, as of 31/12/06 for Karazhanbasmunai2) Oil production of Kazgermunai and CCEL are indicated as a 50 % stakes owned by KMG EP from the date of acquisition.

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Acquisitions – expected impact

Indicators (1) Stakes acquired Timing

Production: 3 mln tonnesReserves 2P: 41 mln tonnes

Completed in April 200750%Kazgermunai

Completed in December 2007Production: 1.9 mln tonnesReserves 2P: 66 mln tonnes

50%Karazhanbas

Production: 6.8 mln tonnes(2)

Reserves 2P: 75 mln tonnes2008 PetroKazakhstan 33%

Kazakhoil Aktobe 2008(3)50%Production: 0.87 mln tonnes

Kazakhturkmunai 2008(3)51%Production: 0.25 mln tonnes

Combined impact of all 5 transactions (assuming they go through, pro-forma estimate): - Production increase +55%, 2P Reserves addition +35-45%

(1) Production indicated for 2007, reserves estimates are indicated as follows: Kazgermunai as of 30/09/06, Karazhanbas as of 31/12/06, PetroKazakhstan as of 31/12/2004(2) PetroKazakhstan Inc. production includes 100% of PetroKazakhstan Kumkol Resources production, 50% share in Kazgermunai production and 50% share in Turgai Petroleum production.(3) KMG EP position in regards to these assets has not been yet defined. Preliminary analysis of of acquisition possibility is taking place

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Strategic Outlook: Growth priorities

Work in progress

• Optimisation of existing assets

• Ongoing exploration

• Acquisition of PetroKazakstan, Kazakhoil Aktobe, Kazturkmunai from NC KMG

Onshore assets in Kazakhstan

Offshore projects

• Acquisition of existing assets (direct negotiations or Article 71)• New licenses

• KMG EP is interested to participate in offshore projects• Access to offshore projects is controlled by NC KMG and the Government

International projects • Analysis of existing opportunities• Current focus: Russia and Turkmenistan

Diversification potential

• Analysis of existing opportunities in Kazakhstan

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Financial SummaryCrude oil salesTax regime

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Financial summary

millions of US$(1) , or as indicated 2006 2007 1Q-07192 187

786(394)

-

(394)

23.4

7.8

11.5

4.0

39239213(1)

(214)51.9%

19119572

3,974(1,720)

-

1,720

24.5

9.5

11.0

4.0

2,2532,253

115142

(1,228)51%

1,2821,411

327

1Q-08Production (kbopd) (2) 192 186

1,191(409)

Environmental (fine) reversal 91 -

Share of results of associates (3) 75

Operating expenses, net of EF 1,624 (409)

24.1

8.5

11.9

3.8

782Operating profit, net of EF 1,645 782

81

(411)47.5%

52753872

Total revenue 3,269Operating expenses (1,534)

Profit for the period (net income) from continuing ops 972Cashflow from operations 969

per bbl produced, including 23.2

- Energy, materials, payroll, repairs and other services 8.5- Transportation, taxes, management fees, fines and penalties, other

11.2

- DD&A 3.5

Operating profit 1,735

Finance (expense) income (1)

Income tax (expense) (760)adjusted effective tax rate (3) 55.0%

Capex 391

(1) Convenience translation from Tenge at KZT/US$ 126.09, 122.55, 124.90, and 120.45 for , 2006, 2007, 1Q-07 and 1Q-08 respectively

(2) Production was calculated excluding 50% shares in Kazgermunai and CCEL, consolidated production is 215 kbopd and 234 for 2007, 1Q2008 respectively

(3) Pretax income adjusted for share of results of associates and fines and penalties, additionally 2006 pretax income adjusted for one-off effect of EPT change of KZT18.6 bln(~USD $148 million)

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Exports offer better economics

US$/bbl CPC UAS Other AverageMarket quote 73.02

(CPC blend)

69.53

(Urals)

n/a n/a

Discount (transportation, quality bank

etc.)

2.41 3.78 n/a n/a

Realised price 70.61 65.75 18.93 55.93

Transportation and other expenses 6.96 6.20 0.83 5.12

Netback price 63.65 59.55 18.10 50.81

2007

US$/bbl CPC UAS Other AverageMarket quote 97.64

(CPC blend)

93.47

(Urals)

n/a n/a

Discount (transportation, quality

bank etc.)

1.04 3.25 n/a n/a

Realised price 96.59 90.23 20.67 74.94

Transportation and other expenses 8.45 7.60 0.83 6.17

Netback price 88.14 82.63 19.84 68.78

Q1 2008

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Over 76% of production is exported

0

50

100

150

200

250

2004 2005 2006 2007 Q1 2008Domestic UAS CPC

176186 187 193

24% 29% 27% 23%

55%

22%18%17%

54% 55%65%

mbopd

53%

24%

23%

174

11%

Netbacks, 2003-2007, Q1-08Sales volumes, 2003-2007, Q1-08

0102030405060708090

100

2004 2005 2006 2007 Q1 2008

CPC UAS Domestic

US$/bbl

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Tax summary by contract

• Excess profit tax rates driven by IRR for most contracts, currently at maximum

• Crude oil export duty at the initial rate of 109.91 US$/tonne is introduced from 17 May 2008 (applies to contracts that do not have explicit customs stability clause)

• Tax code revision is in progress. New version expected to be introduced from 1 January 2009

• Potential impact on KMG EP depends on whether tax stability for contracts signed before 01.01.2004 will be abandoned

Summary of key fiscal terms of Uzenmunaigas and Embamunaigas contracts

AreaUzen&

Karamandybas 22 fields Tengiz KenbayS.E.Novobo-gatinskoye

Contract # 40 211 413 37 61

Issue and expiry years 1996-2021 1998-2018 2000-2020 1996-2021 1997-2017

Royalty, % of taxable revenue 3.5% 3.5%-6% 2%-6% 8% 6%Corporation income tax (CIT) - % 30% 30% 30% 30% 30%Maximum excess profit tax (EPT) rate, %

30% 30% 30% 30% 50%

EPT – taxable base CIT taxable income– CIT payable

– EPT from previous year-WHT on dividends

CIT taxable income– CIT payable

CIT taxable income– CIT payable

CIT taxable income– CIT payable

CIT taxable income– CIT payable

Property tax - % of book value 0.5% 1.0% 1.0% 0.5% 1.0%Road tax - % of taxable revenue 0.0% 0.1% 0.0% 0.5% 0.5%

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New crude oil export duty in Kazakhstan

Export duty (Kazakhstan)

0

5

10

15

20

25

30

35

40

0 10 20 30 40 50 60 70 80 90 100 110 120

Oil price, $/bbl

$/bbl

Oil price (P), $/bbl

Export duty, $/bbl

P<19 0

19<P<60 (P-19)*5%

60<P<75 2,1+(P-60)*22.83%

75<P<90 5.5+(P-75)*38.21%

90<P<105 11.2+(P-90)*48.48%

105<P<120 18.5+(P-105)*55.82%

P>120 26.9+(P-120)*61.34%

Effective from 17th May 2008 at the initial rate $15/bbl ($109.91/ tonne)

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Significant financial resources availablefor acquisitions and exploration

US$ million(1) 31 December 2006

31 December2007

492 180

3,163

(273)

3,070

2,593

(470)

2,615

31 March2008

Cash and equivalents 525

3,429

(237)

3,717

Financial assets

Borrowings

Net cash (debt), end of period

(1) Convenience translation using KZT/US$ 127.00 120.30, and120.69 for Tenge amounts as of 31 December 2006, 31 December 2007 and 31 March 2008.

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Dividends

Record dividends for 2007 (2)

KZT 563 per share (US$ 0.778 per GDR) 26.6% pay-out

15% normal dividend pay-out in accordance with the dividend policySpecial dividend (partial distribution of the initial KGM dividend)

2004 2005 2006 2007(2)

Dividend, the same per ordinary share and

preference share, KZT

74.2 382 500

0.68

30.2

30.3

563

Dividend per GDR, US$(1) 0.09 0.51 0.79

Pay-out ratio, based on net income, % 26.1 40.0 26.6

Pay-out ratio, based on operating cash flow, % 5.8 24.0 24.1

(1) Convenience translation from Tenge at KZT/US$ at 130.23, 134.91, 125.09 , 121.8 and 120.53 for 2003, 2004, 2005 , 2006 and 2007 respectively. One GDR corresponds to one sixth of ordinary share. The dividend per GDR for 2003, 2004 and 2005 are pro-forma based.

(2) Recommended by the Board of Directors, subject to shareholder approval at AGM on 28 May 2008

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Reference information

Share informationTotal number of ordinary shares 70,220,935GDRs per one ordinary share 6

Total number of preferred shares 4,136,107

ContactsTickersLSE KMG

KASE RDGZ

Reuters KMGq.L

Bloomberg KMG LI

www.kmgep.kz

Investor relations e-mail: ir@kmgep.kz

Tel +7 (7172) 975433

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Appendix

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KMG EP: Close relationship with National Company KazMunaiGas

Republic of Kazakhstan

• PetroKazakhstan 33%• TengizChevroil 20%• Kashagan 16.81%• KazMunaiTeniz 100%• Zhambai 50%• Kazakhoil-Aktobe 50%• Kazakhturkmunai 51%

• KazTransOil 100%• KazTransGas 100%• KazMorTransFlot 50%• CPC 19%• KCP 50%

• Trade House KMG 100%• Atyrau refinery 99.07%• Shymkent refinery 50%• KazRosGas 50%• TenizService 49%• KING (research institute)

83.9%

• UzenMG, EmbaMG• Kazgermunai 50%• Karazhanbasmunai 50%

• Formalised relationship with the parent:

- Relationship Agreement- Services Agreement

• 4 out of 8 directors represent NC KMG

Holding Samruk Other NCs100%

100%

National Company KazMunaiGas

Free floatLondon (LSE)Almaty (KASE)

39%(1) KMG EP61%(1)

Transportation Refining, marketing, servicesOther upstream

(1) Ordinary shares

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Production and Capex for 2006 - 2008

Production, kbopd

192 192192

3222

190.87

100

120

140

160

180

200

220

240

260

2006 2007 2008(E)

KMG EP Kazgermunai, 50% (1) KBM, 50% (2)

215*

192

243

Capex, $ mln

391327

384

26

88

110

0

100

200

300

400

500

600

700

2006 2007 2008(E)

KMG EP Kazgermunai, 50% (1) KBM, 50% (2)

353

391

582

(1) Oil production and capex of Kazgermunai for 2007 are indicated as a 50 % stake owned by KMG EP from the date of acquisition (24th April). Oil production and capex of Kazgermunai for 2008 are indicated as 50 % stake owned by KMG EP . Numbers may not add up due to rounding.

(2) 2008 KBM production and capex are indicated as 50% stake of KMG EP for the full year* The production for KGM and KBM is calculated from the date of the acquisitions: 24April07 and 12December07 respectively.