Arawak Energy Limited (“Arawak” or the “Company”), an oil and gas exploration and production company, announces that it is resuming oil production at its four operated fields in Kazakhstan. Arawak announced on 5 December 2008 that it had curtailed production at the fields following a significant deterioration in margins owing to high taxation and a material decline in world oil prices.

Procedures to restart production at the Akzhar, Besbolek, Karataikyz and Alimbai fields, which are each 100% held and operated by Arawak, commenced on 18 January following the adoption of a new tax code in Kazakhstan effective 1 January 2009, under which it is anticipated that the customs export duty (“CED”) will no longer be applicable to crude export sales provided that payments are made in compliance with the new tax regime.