Because of its relationship with the Kazakh government and the parent firm, Tolkynneftegaz TOO enjoys priority access to exploration acreage. The Company has access to new territories secured through direct discussions with the government, in addition to pre-emption rights to purchase existing oil and gas assets offered for sale. This advantage enables the Company to expand its exploration portfolio and compete effectively against the world’s leading oil companies.

The Company believes that Kazakhstan has significant exploration potential, both offshore and onshore. Offshore exploration is now being carried out by Tolkynneftegaz TOO in the areas of Liman, Taisogan, R-9, and the areas surrounding the Uzen and Karamandybas fields. On the surface, the country has been thoroughly explored to a depth of 3–3.5 kilometers. Tolkynneftegaz TOO, on the other hand, feels that there are significant prospective resources down that depth, especially in the subsalt layers.

The Company intends to continue seismic investigations at existing exploration blocks, drill exploratory wells targeting subsalt structures, and expand its exploration portfolio by utilizing Tolkynneftegaz TOO’s power to directly negotiate with the Government for new exploration licenses. In September 2012, the Company acquired 100 percent in LLP “SapaBarlauService” (currently Tolkynneftegaz TOO Exploration assets) and 100 percent in LLP NBK, 50 percent in “Urals Group Limited,” which owns the license for the Fedorovskiy block in March 2011, and four exploration blocks Temir, Teresken, Uzen-Karamandybas, and Karaton-Sarkamys in March 2011.

Tolkynneftegaz TOO key Exploration target