Razvedka Dobycha KazMunayGaz AO : KMG EP reserves update as at 31 December 2016

Astana, 26 January 2017. JSC KаzМunaiGas Exploration Production ('KМG EP' or the 'Company') announces the results of an independent audit of liquid hydrocarbon reserves at the Ozenmunaigas JSC, Embamunaigas JSC, KazGPZ LLP and Ural Oil and Gas LLP (KMG EP share - 50%) fields as at 31 December 2016. The audit was performed by independent consultant DeGolyer and MacNaughton ('D&M').

According to the D&M report proved plus probable (2P) reserves of liquid hydrocarbons as at 31 December 2016 were 145 million tonnes (1,061 million barrels). Taking into account the amount of oil produced during 2016, the 2P reserves increased by 0.7 million tonnes (8 million barrels). The reserves replacement ratio (the ratio of the reserves increase to annual production) was 8%.

Proved (1P) reserves of liquid hydrocarbons as at 31 December 2016 were 93 million tonnes (684 million barrels), and proved, probable and possible (3P) reserves stand at 196 million tonnes (1,433 million barrels).

Liquid hydrocarbon reserves as of 31 December 2016.

	Million tonnes			Million barrels
	1P	2P	3P	1P	2P	3P
Reserves as at 31 Dec 2015	99	152	204	723	1,115	1,491
Production	8.4	8.4	8.4	62	62	62
Reserves increase	2.5	0.7	0,1	22	8	3
Reserves as at 31 Dec 2016	93	145	196	684	1,061	1,433
Present worth at 10%, US$m				3,053	3,560	4,011

The report does not include KMG EP's share in reserves of JV Kazgermunai LLP, CCEL (Karazhanbasmunai) and PetroKazakhstan Inc.

Notes to Editors
KMG EPis among the top three Kazakh oil producers. The overall production in 2015 was 12.4 million tonnes (251 kbopd) of crude oil, including the share in Kazgermunai, CCEL (Karazhanbasmunai) and PetroKazakhstan Inc. The volume of proved and probable (2P) reserves including shares in the associates, at the end of 2015 was 193 million tonnes (1,409 mmbbl). The Company's shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn at its IPO in September 2006.

For further details please contact us at:
KMG EP. Investor Relations ([phone])
Saken Shoshanov
e-mail: [e-mail]

KMG EP. Public Relations ([phone])
Bakdaulet Tolegen
e-mail: [e-mail]

Bell Pottinger ([phone])
Henry Lerwill
e-mail: [e-mail]

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 Company's intentions, beliefs and statements of current expectations concerning, amongst other things, the Company's results of operations, financial condition, liquidity, prospects, growth, potential acquisitions, 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.