Arawak receives Akzhar & Besbolek development approvals


    JERSEY, Channel Islands, Sept. 25 /CNW/ - Arawak Energy Limited
("Arawak"), the independent oil and gas company with exploration, development
and production assets in Kazakhstan, Russia and Azerbaijan, is pleased to
announce that the government regulatory authority in Kazakhstan, the Central
Committee for Development, has approved the technical plans of development for
the Akzhar and Besbolek oil fields allowing the Company to transition from the
exploration phase to the development phase for these blocks.
    Previously shut-in wells are already being put on production and drilling
will re-commence shortly. Earlier in the year, development drilling at Akzhar
and Besbolek was suspended and some production shut in due to regulatory
constraints imposed during the approval process of the technical plan of
    The Company has contracted four drilling rigs to work on Akzhar and
Besbolek, and drilling of the first new well will begin at Besbolek in the
next few days. By mid-October, all four rigs are expected to be active, with a
ten well drilling programme for each block to be completed by year end.
    Alastair McBain, Arawak's President and Chief Executive Officer,
commented: "This is an important milestone in the development of Akzhar and
Besbolek, our most prolific assets in Kazakhstan and the most immediate source
of growth for our production stream. Our team has responded quickly in
commencing the re-opening of shut-in production and starting up an aggressive
drilling programme which will add new production and resume strong growth."
    During the approval process of the technical plan of development, the
State Committee for Reserves in Kazakhstan approved the Company's C1 plus C2
State Balance Reserves for Akzhar and Besbolek at 51.3 million barrels and
12.1 million barrels, respectively. The State Balance Reserves were prepared
by a Kazakhstan engineering institute and form the basis of the production
plan approved by the State. The State Balance Reserves methodology is not
consistent with the definitions and standards set out in the Canadian National
Instrument 51-101 ("NI 51-101"), according to which the Company's oil and gas
reserves are evaluated on an annual basis, and prepared by qualified
independent reserve auditors as defined under NI 51-101. C1 plus C2 reserves
are not equivalent to the proved plus probable reserve classification under NI
51-101. In accordance with NI 51-101, proved plus probable reserves as of
31 December 2007 for Akzhar and Besbolek were 23.4 million and 7.9 million
barrels of oil respectively, but do not take into account work undertaken in

    Notes to editors

    Arawak's Common Shares are listed for trading on both the TSX and the LSE
under the symbol "AAK". The Company is engaged in the exploration, development
and production of oil and natural gas in Kazakhstan, Russia and Azerbaijan. In
Kazakhstan, the Company holds five producing fields and two exploration
blocks. The Company has a 40% participating interest in the Saigak producing
block acquired in June 2008. The remaining assets are held through its 100%
wholly-owned subsidiary Altius Energy Corporation ("Altius"). Altius' main
producing field is Akzhar with smaller fields at Besbolek, Karataikyz and
Alimbai. The two exploration blocks East Zharkamys III and Tamdykol are also
situated in western Kazakhstan. Arawak's producing 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 and in the South Sotchemyu appraisal block.
In Azerbaijan, the Company's asset is its interest in the Exploration
Development and Production Sharing Agreement ("EDPSA") for the South West
Gobustan oil and gas fields. CGL, a company registered in Anguilla, British
West Indies, in which the Company has a 37.17% interest, holds an 80% interest
in the EDPSA with the remaining 20% held by an affiliate of SOCAR. The
remaining 62.83% share in CGL is held by two affiliates of the project
operator, CNPC.

    This announcement includes "forward-looking statements", including
statements with respect to Arawak's anticipated exploration and development
activities 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. As of 31 December, 2007
Arawak's total proved reserves in Kazakhstan were 21.5 million barrels of oil
and total probable reserves in Kazakhstan were 13.3 million barrels of oil.
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 for the year ended 31 December, 2007 and dated 31
March, 2008 as filed at

For further information:

For further information: Arawak Energy Limited, Tanya Pang, Head of
Investor Relations, Tel: +44 (0) 20 7973 4285, Fax: +44 (0) 20 7824 8466,
E-mail:, Web:; Brunswick Group LLP,
Patrick Handley, Tel: +44 (0)20 7404 5959; JPMorgan Cazenove Limited, Steve
Baldwin, Neil Haycock, Tel: +44 (0)20 7588 2828; Oriel Securities Limited,
Richard Crawley, Natalie Fortescue, Tel: +44 (0)20 7710 7600

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