Arawak acquires new Russian appraisal acreage next to existing production blocks


    ANGUILLA, British West Indies, Nov. 29 /CNW/ - Arawak Energy Corporation
("Arawak" or the "Company") is very pleased to announce the acquisition of a
100% interest in the South Sotchemyu Block (the "Block") in the Komi Republic
in northern Russia adjacent to the Company's existing producing assets.
    Arawak, through its 100% subsidiary OOO Arawak Geoservices, was awarded
an exploration and production license for the Block subsequent to an auction
held on November 9, 2007 by the Territorial Agency on Subsoil Use of the Komi
Republic. The 71.4 sq km license for the Block has now been duly issued to the
Company. Under contract terms, success in the initial five year exploration
period will be followed by the rights to an additional twenty-year production
phase, with the primary license term expiring in November 2032. The auction
documentation indicated resources of 5 million barrels attributable to the
Block. The total cost of the acquisition was less than US $1 million.
    The 71.4 sq km block is contiguous to the Company's existing operations
and shares its east boundary with ZAO Pechoraneftegas area and its south
border with the OOO NK Recher-Komi areas, in both of which the Company holds a
50% operating interest, and is surrounded by other producing fields.
    The Block is traversed by an infrastructure corridor, which includes the
Transneft trunk oil pipeline and the Northern railway, and which will
facilitate the export of crude. Except for the northeast section, the Block is
evenly covered by a network of seismic lines. Initial plans include
reprocessing the existing seismic coverage followed by a 500 km 2D shoot prior
to exploratory drilling to assess block potential. It is expected that the
first well will be drilled as early as next year.
    Geographically, the Block is located in the prolific Timan-Pechora Basin.
The target producing horizon is the shoe-string Devonian carbonate reservoir
draped over a shelf edge reef complex. The entire complex is bounded by
structural closure, which defines the oil-water contacts. Reservoir pressure
support is typically provided by an almost infinite acting acquifer influx.
    Alastair McBain, Chief Executive Officer of Arawak, said: "We are
delighted to have acquired our fourth block in Komi and our second 100% owned
block. Situated as it is between two of our existing producing fields on the
same geological trend, we are confident that we can add to our reserves and
production inventory in Russia in the near future. We have again demonstrated
our ability to leverage our local knowledge to aggressively develop and expand
our business in Russia."

    The TSX does not accept responsibility for the adequacy or accuracy of
    this release.

    Arawak's common shares are listed for trading on the TSX under the symbol
"ABG". The Company is engaged in the exploration, development and production
of oil and natural gas in Kazakhstan, Russia and Azerbaijan. The Company's
three producing fields and two exploration blocks in Kazakhstan are held
through its 100% wholly-owned subsidiary Altius Energy Corporation ("Altius").
Altius' main producing field is Akzhar, extended in 2006 from 3.8 to
71.5 sq km, with smaller fields at Besbolek and Karataikyz. The two
exploration blocks, Alimbai and East Zharkamys III, are also situated in
western Kazakhstan. Arawak's assets in Russia are held through ZAO
PechoraNefteGas ("PNG") and LLC NK Recher-Komi ("Recher-Komi") in which Arawak
has a 50% interest with the remaining interest being held by Lundin Petroleum
AB. Also in Russia, Arawak holds a 100% interest in the Kymbozhyuskaya
exploration block. In the Azerbaijan Republic, the Company's asset is its
interest in the South West Gobustan Exploration Development and Production
Sharing Agreement (the "EDPSA"). Commonwealth Gobustan Limited ("CGL"), in
which Arawak has a 37.17% interest, holds an 80% interest in the EDPSA with
the remaining 20% owned by SOCAR Oil Affiliate.

    This press release includes "forward looking statements", which are based
on the opinions and estimates of management at the date the statements are
made, and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ materially from
those projected in the forward looking statements. These risks and
uncertainties include, but are not limited to, risks associated with the oil
and gas industry (including operational risks in development, exploration and
production; delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of reserve
estimates; the uncertainty of estimates and projections in relation to
production, costs and expenses and health, safety and environmental risks),
the risk of commodity price and foreign exchange rate fluctuations, the
uncertainty associated with commercial negotiations and negotiating with
foreign governments and risks associated with international activity. Although
Arawak believes that its expectations represented by these forward-looking
statements are reasonable, there can be no assurance that such expectations
will prove to be correct. Additionally, the estimates of reserves and future
net revenue for individual properties may not reflect the same confidence
level as estimates of reserves and future net revenue for all properties, due
to the effects of aggregation. Due to the risks, uncertainties and assumptions
inherent in forward-looking statements, prospective investors in the Company's
securities should not place undue reliance on these forward-looking
statements. For a detailed description of the risks and uncertainties facing
Arawak, readers should refer to Arawak's Annual Information Form as filed at

For further information:

For further information: Alastair D. McBain, President & Chief Executive
Officer, Phone: +(44) 20 7973 4285, Fax: +(44) 20 7824 8466; Charles R. A.
Carter, Chief Financial Officer, Phone:+(44) 20 7973 4285, Fax: +(44) 20 7824
8466; E-mail:,

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