3A Petroleum Corporation

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3A PETROLEUM CORPORATION
Grow with us!
3A Petroleum Corporation
September 4, 2002
Eureka
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Content of presentation

• In this presentation, we are going to cover the
  following
• Vision and goals
• Company History
• Organizational Chart
• Exploration Production
• Development
• Personnel Environment
• Country Risk Analyses
• Financial Statements Status
• Future Prospects
• Corporate Social Responsibility
• Environmental Strategy

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Vision Goals
An emerging global leading entity in the energy
industry employing state of art of technology in
an environmentally safe way.

• To bring maximum value of our assets and
  activities to our shareholders.
• To position 3A Petroleum Corporation in the
  market as a leading producer and supplier of oil
  gas.
• To expand our activities to downstream
  operations, such as refining, distribution and
  petrochemicals.
• To become one of the major gas supplier to
  European market.
• To operate with the highest safety and
  environmental standards.

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Company History

• 3A Petroleum Corporation was established as a
  public company in September 4, 1982 by a
  group of enthusiasts from three continents
  Asia, America and Africa.
• Corporate headquarters is located in PetroCity,
  Republic of Oilers.
• The business model and management have a proven
  track record.
• We opened our first international branch in
  Algeria in 1990 and since then have
  established our offices in 4 other countries
  Venezuela, China, Kazakhstan and Yemen.
• In a year 2000 we received an Award of
  Recognition from ONS-A as the best performing
  cost effective upstream company.
• In a year 2001 we achieved substantial net
  addition to reserve base by 20 million boe and
  were able to increase our production by 15.

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Organizational Chart
Board of Directors President CEO
Secretary Corporate Affairs
VP EP
VP Marketing
VP Finance
African Branch
American Branch
Asian Branch
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Exploration Production

• Total volume of 3A Petroleum Corporation oil
  gas production is about 100 000 boepd.
• Main production areas are
• - Venezuela
• - Algeria
• China
• Kazakhstan
• Yemen.
• Our reserve base is about 700 million boe, 500
  million out of which are proven.
• Our proven reserves are located in Venezuela,
  Algeria and China.
• Our probable reserves are being located in
  Kazakhstan and Yemen.
• 3A Petroleum Corporation is performing 3D
  seismic study in the western part of
  Kazakhstan and China.
• Corporation drilled 7 exploratory wells in
  Venezuela and Algeria last year.

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PROVEN PROBABLE RESERVES
PRODUCTION
TOTAL 700 MMBOE
TOTAL 100 000 BOEPD
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Development

• 3A Petroleum Corporation is increasing its
  oilgas production by implementing new
  techniques and methods like 3D, horizontal
  drilling, etc.
• 3A is working to increase reserve base in
  Algeria and China.
• Corporation is searching for possibilities to
  explore and develop new oil gas fields in
  new areas.
• 3A Petroleum is also looking for possibilities
  of entering new markets and petroleum
  activities.
• In year 2001 we increased the number of wells to
  150, out of which 8 are horizontal,
  implementing latest technologies in drilling.
• Good example comes from Kazakhstan, where we
  were able to substantially increase our probable
  reserve base by carrying out simulation study
  of oilfields.

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Personnel Environment

• We currently employ about 250 people, out of
  which 20 work in our headquaters.
• We try to attract and employ the most
  experienced and highly-quialified people.
• Our working environment is team-spirited and
  friendly.
• We encourage our managers to go through training
  program at Petrad (Stavanger, Norway) before
  moving into senior level positions.
• We pursue equal opportunity schemes and definite
  career path for our employees.
• We try to create atmosphere of cooperation and
  mutual support inside the company thus
  encouraging our people to work hard.

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Country Risk Analyses

• We classify country risk into three categories
• - political risk
• - economic risk
• - social risk.
• We consider political risk as very low in all 5
  countries where we operate. We were successful in
  solving problems in one country, which recently
  experienced some political problems.
• All 5 countries are promoting sound and
  attractive fiscal policy towards foreign
  investors, they have established cooperative
  atmosphere inside the business environment. We
  are also working in different production schemes
  PSAs, concession and others.
• Level of energy consumption in these countries is
  constantly growing, thus making us work hard to
  bring more oil and gas to people in these
  countries.

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Financial Statements Status

• Operating cash flow US 85 million.
• Net income US 70 million, or 2 per share, on
  revenues of 420 million for the year ended
  Dec. 31, 2001.
• The average oil price for 2001 was 19.79 down
  9 percent from 21.72 in 2000.
• The company achieved a solid return on capital
  employed of 11.7 percent and a 14.7 percent
  return on equity. We achieved these results
  despite the negative impact of price fall.
• Net debt/ Shareholders funds less than 100.
• Reserves - 700 million barrels (lt 3.5 per
  barrel).

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Future Prospects

• We are interested in entering markets in
  Thailand, Nigeria and Eureka.
• We are currently handling negotiations with Thai
  authorities for possible exploration and
  development of some oilfields in the western
  part of country.
• We are in a stage of signing EP contract with
  Nigerian Government for the middle-size
  gasfields in the eastern part of the country.
• We have successful experience in offshore
  activities in Yemen and China.
• We consider Eureka gas market as viable and
  challenging.
• We would like to be partners for the people in
  Eureka and explore their natural resources in
  a mutually beneficial way.

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Corporate Social Responsibility

• 3A Petroleum Corporation commitment is to
• Provide support and assistance to the
  communities in which we operate.
• Build cooperative relationships and providing
  opportunities to improve the standards of living
  of our communities.
• Work with local authorities in supporting
  education. In this sense we provide scholarships
  to students in countries where we operate.
• Promote community development and health
  improvement through a combination of company
  and employee-led initiatives.

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Environmental Strategy

• 3A Petroleum Corporation is commited to operate
  in an environmentally sound manner. To accomplish
  this, 3A Petroleum Corporation
• Assesses and manages the environmental impact
  of its operations.
• Complies with applicable environmental laws,
  regulations and other requirements.
• Promotes resources and energy conservation,
  waste minimization and pollution prevention
  programs.
• Ensures that environmental, energy and resource
  management conservation are an integral part
  of the management process for business
  activities.
• Recognizes and responds to employee and
  community regarding the environmental aspects of
  its operations.

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Contacts

• Contact address
• 3A Petroleum Corporation
• 55, Cooperation Avenue
• PetroCity 777000, Republic of Oilers
• Phone [phone]
• Fax [phone]
• Email contact_at_3APetro.com
• Web site http//www.3APetro.com

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Group 1

• This presentation was prepared by
• Mr. Arman Kashkinbekov (Kazakhstan)
• Mr. Abdul-Jabbar Khalil (Yemen)
• Mr. Radames Gomez (Venezuela)
• Ms. Radia Sedaoui (Algeria)
• Mr. Liu Shugen (China)
• Ms. Kamonwan Suksawat (Thailand)
• Mr. Walker Iheanyichukwu (Nigeria)
• It can be viewed or downloaded online at
  http//www.arman.kz (click 3A Petroleum
  Corporation link)

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Thank You Very Much For Your Attention!
We are now ready to do business with you!!! Are
you ready???...