Decision Reached Regarding Exploration and Production Companies in Russia

Own release

03.12.2007

With reference to the current reports No. 14/2007 and 27/2007, the Management Board of Petrolinvest S.A. (hereinafter: "the Company") hereby announces that on 3 December 2007 it has informed the Group of Exploration and Production Companies (hereinafter: “the Group”), referred to in the current reports listed above, that it has suspended negotiations concerning the acquisition of the Group’s shares.

In making the decision, the Management Board has considered the following premises:

prospects of participation in the consolidation of the oil production market in Kazakhstan,
focus on utilizing the production potential in the licensed areas in Kazakhstan,
unstable situation on capital markets.

The Management Board of the Company has assessed that focusing on the Kazakh projects at this stage of the Company’s development will allow to reach the assumed levels from documented crude oil deposits and extraction of crude oil in the most effective way possible from the point of view of Company Shareholders, providing Shareholders with a higher capital rate of return.

Download the current report No. 31/2007