* MARCH 2008 PRODUCTION: 1,556 BARRELS PER DAY
* INCREASED PRODUCTION DESPITE MORE WELLS UNDER HYDRO FRACTURING
Malka Oil's total production of oil and condensate for the month of
March amounted to 48,244 barrels, compared with February when the
production was 40,839 barrels. On average the production was 1,556
barrels per day, compared with 1,408 barrels per day during
February."It is very satisfying to see that production has increased
compared to February even though several wells have been shut down
due to hydro fracturing. As they come back on stream again we
expect the production volumes to build up during April and onwards"
says Malka's Managing Director Fredrik Svinhufvud.
Malka Oil predicts that the production will increase to around
4,500 barrels per day before the end of May and further up to 6,000
barrels per day by the end of June. As per today nine out of
planned 16 wells have been hydro fractured and the remaining seven
will be treated during May and June.
During March Malka Oil produced oil and condensate from 11 wells,
compared to 13 wells in February.
For further information, please contact:
Fredrik Svinhufvud, Managing Director Malka Oil, tel +46 8 5000
7811, mobile +46 708 708 708
Richard Tejme, CFO, tel +46 8 5000 7812 mobile +46 707 31 52 17
For further information on Malka Oil AB, see the website
www.malkaoil.se
Malka Oil AB (publ) is an independent oil and gas production
company operating in the Tomsk region in western Siberia. Their
current position consists of oil and gas assets for license block
number 87 in the said region. The block has a surface of 1,800
square kilometres. There are currently three oil fields at the
license block, namely Zapadno-Luginetskoye ("ZL"), Lower
Luginetskoye ("LL") and the Schinginskoye oil field, and a large
quantity of other not yet drilled oil structures. The ZL and LL oil
fields are in production and these two oil fields field have also
went through reserve classification by the Russian State Committee
of Reserves (GKZ). A considerable drilling programme was carried
out in 2007. The GKZ registered extractable oil and condensate
reserves in the categories C1 and C2 amounted to 97 million barrels
at the end of 2007. The company's own estimate of its extractable
oil and condensate reserves in the three existing oil fields on
license block number 87 is currently 140-190 million barrels. Malka
Oil's license block is surrounded by a large number of producing
oil and gas fields.
Reasonable caution notice: The statement and assumptions made in
the company's information regarding Malka Oil AB's ("Malka")
current plans, prognoses, strategies, concepts and other statements
that are not historical facts are estimations or "forward looking
statements" concerning Malka's future activities. Such future
estimations comprise but are not limited to statements that include
words such as "may occur", "concerning", "plans", "expects","estimates", "believes", "evaluates", "prognosticates" or similar
expressions. Such expressions reflect the management of Malka's
expectations and assumptions made on the basis of information
available at that time. These statements and assumptions are
subject to a large number of risks and uncertainties. These, in
their turn, comprise but are not limited to i) changes in the
financial, legal and political environment of the countries in
which Malka conducts business, ii) changes in the available
geological information concerning the company's projects in
operation, iii) Malka's capacity to continuously guarantee
sufficient financing to perform their activities as a "going
concern", iv) the success of all participants in the group, or of
the various interested companies, joint ventures or secondary
alliances, v) changes in currency exchange rates, in particular
those relating to the RUR/USD rate. Due to the background of the
many risks and uncertainties that exist for any oil-prospecting
venture and oil production company in its initial stage, Malka's
actual future development may significantly deviate from that
indicated in the company's informative statements. Malka assumes no
implicit liability to immediately update any such future
evaluations.
