Arawak Energy Limited (“Arawak” or the “Company”), listed on the Toronto Stock Exchange under the symbol “ABG”, is an independent oil and gas company which produced an average of 7,905 bopd in 2006.

Arawak has a balanced portfolio of current production, multi-well development drilling programs and exploration opportunities and aims to become a leading, independent public oil and gas company focused on the FSU.

Arawak is focused on three countries which we believe will provide the main drivers to increased oil and gas supply outside OPEC in the first decades of the 21st Century; Kazakhstan, Russia and Azerbaijan. It is our aim to leverage our position as established operators in all three locations to maximise opportunity and return for our investors.

Arawak has grown from a geoscience business to a multi-asset oil and gas company in nine years. Building upon its original interest in the Azerbaijan Republic, in January 2005 Arawak completed two acquisitions: 50% of ZAO PechoraNefteGas (“PNG”) in Russia and 100% of Altius Energy Corporation (“Altius”) in Kazakhstan, which transformed the Company into a multi-national and multi-asset oil and gas producer, developer and explorer.

To those first acquisitions, Arawak added the Alimbai exploration block close to existing operations in Kazakhstan at the end of 2005. In early 2006, the Company expanded the area of Altius’ main producing field, Akzhar, by 67.7 sq km and in June, acquired a 50% interest in LLC Recher-Komi (“Recher”) which company’s North Irael field is adjacent to PNG operations in Russia. Then in December 2006, Arawak acquired a 100% interest in the 177 sq km exploration block, Kymbozhyuskaya, also in Russia and the 1,845 sq km East Zharkamys III exploration block, close to the Akzhar field in Kazakhstan.

We expect year-on-year production growth of 33% in 2005 and 39% in 2006 to continue at a similar pace over the next few years, and intend to use the cash-flow generated to fund our ambitious capital expenditure programs and to provide greater prospects for future additions to the portfolio through organic growth and acquisition.

As well as a balance of production, development and exploration, Arawak’s licenses are a mix of contract terms, from tax based in Russia, tax-royalty in Kazakhstan to an Exploration, Development and Production Sharing Agreement in Azerbaijan.