MALKA OIL: JULY 2008 PRODUCTION: 2,325 BARRELS PER DAY - PRODUCTION TARGETS AND DEVELOPMENT PLANS TO BE REVISED

* JULY 2008 PRODUCTION: 2,325 BARRELS PER DAY
  * PRODUCTION TARGETS AND DEVELOPMENT PLANS TO BE REVISED

Malka Oil's total production of oil and condensate for the month of
July 2008 amounted to 72,076 barrels, compared with June when the
production was 63,085 barrels. On average the production was 2,325
barrels per day, compared with 2,103 barrels per day during June."Although we have had an increase in production of oil month by month
it is of course not satisfactory that targets have not been achieved.
We will reach these targets but must now review our plans based upon
achieved results" says Malka's Managing Director Fredrik Svinhufvud."Malka's oil production has not progressed as expected due to
limitations in the infrastructure. The connection to Tomskayaneft is
progressing and is expected to be completed in the near future. This
will result in an increased logistics capacity up to approximately
4,000 barrels per day and after the completed connection the
production will increase step by step to reach this level during the
year" Fredrik Svinhufvud continues.

The continued expansion of the pipeline into Transneft will commence
immediately after the Tomskayaneft connection is ready and is
estimated to be operational within 6-8 months. This will eliminate
all present logistical bottlenecks.

The September and year-end targets are estimated to be reached later
in time. Malka is now together with Western expertise conducting a
review of the field development plans for the three existing oil
fields on the license block and will return with a revised plan later
this autumn.

During July Malka Oil produced oil and condensate from 17 wells,
compared to 13 wells in June.


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.