BMB Munai Commences Operation of Gas Utilization System

ALMATY, Kazakhstan, Nov. 5, 2010 /PRNewswire/ -- BMB Munai, Inc. (NYSE Amex: KAZ) announced today that the Company's subsidiary Emir Oil has placed in operation an expanded gas utilization system, which allows the Company to prepare all of the gas produced from its associated oil production activities for pipeline transportation in the government-operated gas distribution system.

Gamal Kulumbetov, BMB Munai's Chief Executive Officer, stated that the Company is no longer flaring any natural gas in any its oil fields.   Kulumbetov noted, "Cessation of gas flaring is an important accomplishment and advances us toward our goal to transition to the Commercial Production stage in the Aksaz, Dolinnoe and Kariman oil fields."  Under Kazakhstani legislation, gas flaring is prohibited by commercial producers.

In the spring of 2010, the Company began the expansion of a smaller gas utilization facility constructed several years earlier in order to reach every producing well in the Company's fields.  The expanded system is comprised of a pumping station, gas processing facility, internal pipelines and a connection to the state-operated gas pipeline.  The new system underwent a rigorous period of testing over a period of several months before commencing full operations. The expanded system increases the capacity to 150,000 cubic meters per day (approximately 5.3 million cubic feet).  This increased capacity in the system will accommodate anticipated increases in production leading up to the issuance of a production license by the Kazakhstan government.      

BMB Munai is an independent oil and gas company engaged in the exploration and test production of crude oil and natural gas in Western Kazakhstan. The Company maintains administrative offices in Salt Lake City, Utah and Almaty, Kazakhstan.

The information contained in this release includes forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. Certain statements contained herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied. Forward-looking statements involve risks and uncertainties, including but not limited to, risks described in the Company's periodic reports on file with the Securities and Exchange Commission.

SOURCE BMB Munai, Inc.