* PRODUCTION NOVEMBER 2008: 2,953 BARRELS PER DAY
* TEMPORARY PRODUCTION DISTURBANCES DURING NOVEMBER
* TARGET OF 4,000 BARRELS MOVED FORWARD 4-6 WEEKS
* UPDATED RESERVE REPORT EXPECTED WITHIN TWO WEEKS
Malka Oil's total production of oil and condensate for the month of
November 2008 amounted to 88,587 barrels, compared with October
when the production was 99,517 barrels. On average the production
was 2,953 barrels per day compared with 3,210 barrels per day
during October. The reasons for the decrease are temporary
production disturbances and the 4,000 barrels per day target is
therefore moved forward 4-6 weeks in time.
An update of the Company's Western reserve estimation is expected
within two weeks."The temporary production disturbances are mainly due to lack of
physical access for the equipment necessary to stimulate production
and the adding of new wells. This will be remedied when winter
roads are ready which is expected in January 2009. Until then the
production will remain at around 3,000 barrels per day.", says
Fredrik Svinhufvud, Managing Director Malka Oil.
During November Malka Oil produced oil and condensate from 17
wells, compared to 17 wells in October.
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 licence 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
licence 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
have during 2007 went through reserve classification by the Russian
State Committee of Reserves (GKZ) and during spring 2008 a Western
reserve study made by DeGolyer and MacNaughton. 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, C1+
C2, in the three existing oil fields on licence block number 87 is
currently 140-190 million barrels. The Western reserve study
estimation as of April 30, 2008 amounted to 43.5 million barrels 2P
and 90.6 million barrels 3P oil reserves.
Malka Oil's licence 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.
