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AMSTERDAM, THE NETHERLANDS -- (Marketwire) -- 03/18/13 --

       ZHAIKMUNAI MORE THAN DOUBLES REVENUE AND EBITDA IN 2012Amsterdam, 18 March 2013. Zhaikmunai LP ("Zhaikmunai"), the oil and gasexploration and production enterprise with assets in north-westernKazakhstan, today communicates its full-year financial results for theyear ended 31st December 2012.-----------------------------------------------------------------------                          2012 KEY HIGHLIGHTS- Total production (crude oil and GTF products) almost tripled in2012 to 13,520,040 boe (182% increase);- Revenue more than doubled in 2012 to USD 737 million (115%increase);- EBITDA more than doubled in 2012 to USD 460 million (133%increase);- Net income doubled in 2012 to USD 162 million (98% increase);- Balance sheet remained very strong in 2012 with USD 251 million incash and equivalents (93% increase).Frank Monstrey, Chairman of Zhaikmunai commented:"2012 has been a landmarkyear for Zhaikmunai. I am very proud of thesuccess our management team has achieved with the completion of ourfirst phase of development. The Company is now significantly de-riskedfrom both an operational and a financial perspective. Zhaikmunai todayfinds itself in a unique position within the industry as it combinesimportant cash generation with significant production growth over thecoming years. We now much look forward to doubling production inaddition to increasing the potential of our assets through ourappraisal and development programme. We have taken our first steps intoacquisitions in 2012 and we will continue to look for the best possibleways to further enhance shareholder value moving forward."-----------------------------------------------------------------------                             FINANCIAL HIGHLIGHTSAll figures in USD million unless otherwise stated                                          FY 2012   FY2011   Change YoYRevenue                                    737.1    342.6(1)    + 115%EBITDA                                     460.3     197.4      + 133%EBITDA Margin                               63%        58%       + 8%Cash Capital Expenditures (excl. VAT)(2)   255.4     133.7      + 91%Cash and Equivalents                       251.4     128.5      + 96%Net Debt                                   401.1     321.5      + 26%Net Income                                 162.0      81.6      + 99%Average Brent crude oil price on which     107.4     106.9       + 0%Zhaikmunai based its sales (USD/bbl)_________________(1) In 2011 accordance with IFRS, sales from GTF test production werenot included in the Company's revenue but were offset against capitalexpenditure (CIP). 2011 cumulative sales of GTF test production(stabilised condensate, LPG and dry gas) amounted to USD 41.7 million.Reported revenue of USD 300.8 million plus test production of USD 41.7million totalled USD 342.6 million in FY2011.(2) "Cash capital expenditures (excl. VAT)" for operations refer toactual net cash spent on capital expenditures and constitute a goodCAPEX indicator. "Net cash used in investing activities" is an IFRSterm based on indirect cash flow methodology. In 2012, this line itemof USD 270.6 million includes USD 50.0 million deposit (included in thetotal cash and equivalents amount of USD 251.4 million).Revenue increased by USD 394.5 million, or 115%, to USD 737.1 millionin the year ended 31 December 2012 from USD 342.6 million in the yearended 31 December 2011 primarily due to the additional revenuegenerated by the increased production from the Gas Treatment Facility.(In accordance with IFRS, sales from GTF test production were notincluded in the Company's 2011 revenue but were offset against capitalexpenditure (CIP). 2011 cumulative sales of GTF test production(stabilised condensate, LPG and dry gas) amounted to USD 41.7 million.Reported revenue of USD 300.8 million plus test production of USD 41.7million totalled USD 342.6 million in FY2011).EBITDA more than doubled in 2012 to USD 460.3 million (133% increase)(EBITDA of USD 197.4 million in 2011 included capitalized net proceedsadjusted for capitalized depreciation linked to the GTF testproduction). The EBITDA margin increased by 8% to reach 63% in 2012(the EBITDA margin in 2011 was 58%, assuming a total revenue includingsales from test production).Cost of sales increased by USD 167.4 million, or 237%, to USD 238.2million in the year ended 31 December 2012 from USD 70.8 million in theyear ended 31 December 2011 primarily due to an increase in production,depreciation, repair and maintenance, payroll expenses and materialsand supplies driven by commencement of operations at the GTF. On a boebasis, cost of sales decreased by USD 3.36 or 16%, to USD 17.48 in theyear ended 31 December 2012 from USD 20.83 in the year ended 31December 2011, and cost of sales net of depreciation per boe decreasedby USD 5.07, or 34% to USD 10.04 in the year ended 31 December 2012from USD 15.11 in the year ended 31 December 2011.General & administrative expenses increased by USD 25.1 million, or69%, to USD 61.6 million in the year ended 31 December 2012 from USD36.4 million in the year ended 31 December 2011 largely due to anincrease in social programme expenditures of USD 20.8 million in theyear ended 31 December 2012 from USD 1.1 million in the year ended 31December 2011. This increase was related to the cost of construction ofa 37-kilometre asphalt road accessing the field site, which the Groupagreed to construct. The costs associated with the construction of thisroad are significantly higher than the Group's usual costs relating tosocial programmes under the PSA. Other expenses contributing to theincrease in general and administrative expenses include an increase inmanagement fees, an increase in payroll and related taxes and anincrease in training expenses.Profit before income tax increased by USD 133.4 million, or 90%, to USD282.4 million in the year ended 31 December 2012 compared to a profitof USD 149.0 million in the year ended 31 December 2011. The higherlevel of profit was driven primarily by increased revenue due to theinclusion of GTF output.Net income increased by USD 80.4 million, or 99%, to USD 162.0 millionin the year ended 31 December 2012 from USD 81.6 million in the yearended 31 December 2011. This higher profitability was driven byincreased revenue from increased production.Kai-Uwe Kessel, CEO of Zhaikmunai, commented:"Zhaikmunai is now solidlyanchored operationally and financially. Thisis an excellent platform from which we can pursue our next stage ofdevelopment. I remain excited about the potential to further developour reserve base over the coming years. In addition I believe that ournew acquisitions will demonstrate that we can not only grow organicallybut we are also able to make value-enhancing acquisitions that enhanceshareholder value."OPERATIONAL HIGHLIGHTSProductionAll figures in boe (barrels of oil equivalent) unless otherwise stated                                 FY 2012      FY 2011   Change YoYTotal Production               13,520,040    4,802,561   + 182%(Crude Oil + GTF Products)Total Daily Average Production   36,940       13,158      + 181%(Crude Oil + GTF products)All figures in boe (barrels of oil equivalent) unless otherwise statedProducts                      2012 Average         2012 Average Product                              Production           %Crude Oil & Stabilised          15,764                  43%CondensateLPG (Liquid Petroleum Gas)       2,940                  8%Dry Gas                         18,237                 49%TOTAL                           36,940                 100%- Total production (crude oil and GTF products) almost tripled in2012 to 13,520,040 boe (182% increase);- Total average daily production (crude oil and GTF products) in2012 was 36,940 boepd.DrillingZhaikmunai contracts with third parties who perform drilling operationsin the Chinarevskoye Field:- As at 31 December 2012, Saipem, Sun Drilling, UNGG and Xi-Buprovided their drilling services, supplying a total of six drillingrigs;- In addition, Kazburgaz and UNGG rigs were employed for workoveroperations.The average time required to drill new vertical wells is approximatelythree months in the Tournaisian reservoir and four months in theDevonian, Biski-Afoninski reservoirs:- Based on historical contracts, the Group has budgeted a cost perwell of approximately USD 11.0 million for production/appraisal wellsto be drilled to the Devonian reservoirs (and an additional USD 3.0million per well for horizontal wells);- The cost per well for vertical production wells to the Tournaisianreservoir is budgeted at approximately USD 8.0 million.Zhaikmunai plans to drill 15 - 17 wells in 2013 for a total cost of USD200 million:- 9 appraisal wells- 1 exploration well- 7 production wellsRecent DevelopmentsZhaikmunai completed the acquisition of three fieldsIn March 2013, Zhaikmunai confirmed that it had acquired legalownership of the subsoil rights related to three oil and gas fields(Rostoshinskoye, Darinskoye and Yuzhno-Gremyachenskoye) in Kazakhstanlocated close to its main producing field, the Chinarevskoye field,following the signing of the respective supplementary agreementsrelated thereto by the Ministry of Oil and Gas (MOG) of the Republic ofKazakhstan effective 1st March 2013.GDR Buy-Back ProgrammeIn February 2013, Zhaikmunai announced that the Board of Directors ofits general partner, Zhaikmunai Group Limited (ZGL), had approved aGlobal Depositary Receipt (GDR) buy-back programme and had submitted arecommendation to the limited partners of the Partnership that theyapprove such programme by special resolution in a special generalmeeting scheduled for 28 March 2013 in Amsterdam.Corporate Headquarters moved to the NetherlandsIn Q1 2013, the seat of effective management of ZGL and Zhaikmunai LPwas moved to Amsterdam, The Netherlands.-----------------------------------------------------------------------ATTACHED DOCUMENTSAttached to this press release are Zhaikmunai's 2012 ConsolidatedFinancial Statements and 2012 Management Report. The latter containsthe following items:Here you can download the following documents:Download the 2012 Consolidated Financial Statements;http://www.rns-pdf.londonstockexchange.com/rns/2009A_-2013-3-17.pdfDownload the 2012 Management Report.http://www.rns-pdf.londonstockexchange.com/rns/2009A_1-2013-3-17.pdf-----------------------------------------------------------------------CONFERENCE CALLZhaikmunai's management team will be available for a presentation ofZhaikmunai's 2012 Full-Year Results followed by a Q&A session foranalysts and investors on Monday, March 18, 2013 at 14:00 UK time (GMT+ 0:00).If you would like to participate in this call, please register by emailusing the following email address: [email protected].Please provide your ID details (name, title, company, email address andtelephone number) in order to receive dial-in details.Further informationFor further information please visit www.zhaikmunai.comFurther enquiriesZhaikmunai LP - Investor RelationsBruno G. MeereKirsty Hamilton-Smith[email protected]  + 44 (0) 1624 68 21 79Pelham Bell PottingerPhilip DennisElena Dobson                       + 44 (0) 207 861 32 32About ZhaikmunaiZhaikmunai is an independent oil and gas enterprise currently engagingin the production, development and exploration of oil and gas innorth-western Kazakhstan. Its Global Depositary Receipts (GDRs) arelisted on the London Stock Exchange (Ticker symbol: ZKM). Zhaikmunai'sprincipal producing asset is the Chinarevskoye field, in which it holdsa 100% interest and is the operator, through its wholly-ownedsubsidiary Zhaikmunai LLP. In addition, Zhaikmunai holds a 100%interest in and is the operator of the Rostoshinskoye, Darinskoye andYuzhno-Gremyachenskoye oil and gas fields. Located in the pre-Caspianbasin to the north-west of Uralsk, these exploration and developmentfields are approximately 60 and 120 kilometres respectively from theChinarevskoye field.Forward-Looking StatementsSome of the statements in this document are forward-looking.Forward-looking statements include statements regarding the intent,belief and current expectations of the Partnership or its officers withrespect to various matters. When used in this document, thewords"expects,""believes,""anticipates,""plans,""may,""will,""should"and similar expressions, and the negatives thereof, are intended toidentify forward-looking statements. Such statements are not promisesor guarantees, and are subject to risks and uncertainties that couldcause actual outcomes to differ materially from those suggested by anysuch statements.                    This information is provided by RNS          The company news service from the London Stock ExchangeEND