MALKA OIL: MAY 2008 PRODUCTION: 2,081 BARRELS PER DAY


* MAY 2008 PRODUCTION: 2,081 BARRELS PER DAY

Malka Oil's total production of oil and condensate for the month of
  May amounted to 64,507 barrels, compared with April when the
  production was 58,804 barrels. On average the production was 2,081
  barrels per day, compared with 1,960 barrels per day during April."As previously announced, we didn't reach our production target of
  4,500 barrels per day at the end of May due to limitations in the
  delivery system and we are now addressing these problems step by
  step. The goal of 8,000 barrels per day at the year-end still
  remains and our interim targets are moved forward two months" says
  Malka's Managing Director Fredrik Svinhufvud.

  Malka Oil predicts that the production will increase to around
  4,500 barrels per day before the end of July and further up to
  6,000 barrels per day by the end of August.

  During May Malka Oil produced oil and condensate from 13 wells,
  compared to 12 wells in April.


  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 license  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
  license   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 field have  also
  went through reserve classification by the Russian State  Committee
  of Reserves (GKZ).  A considerable drilling  programme was  carried
  out in  2007. 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 in  the three existing  oil fields  on
  license block  number 87  is  currently 140-190  million  barrels.
  Malka Oil's  license  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.

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