Drilling of well No 37 in the Northern Nishan gas condensate pool was commenced on 6 July and completed on 27 October 2008. The outcome at a depth of 3,480m was 450 tcm of natural gas per day.

As of today, 16.8 million cubic meters of natural gas and 1,725 tonnes of liquid hydrocarbons are produced daily at Gissarneftegaz’s fields.

All natural gas produced by the JV is exported; oil and gas condensate is sold in the home market.

Registered in May 2005 as an exploration and production JV between Zeromax and Uzbekneftegaz , Gissarneftgaz completed a Feasibility Study (TEO) on the technical and economic feasibility of exploration and production initiatives for the Та gam-Shimoliy Tandyrcha field in the Gissar Region as well as development projects for the North Nishan, Kamashi, Beshkent, North Guzar and Shakarbulak oil and gas fields.

Following the TEO, US$250 million has been invested to date in exploration work and in field development, with over 1200 new jobs created.

Seismic measurements are underway in a 350 km2 area and prospecting work in a 300 km2 area was completed by the end of 2007 with two wells drilled and one nearing completion. Prospect drilling has also been completed at Tagam field, where new high hydrocarbon production horizons have been discovered. Prospect drilling is continuing at the Tavakkal and Allagachikuduk structures.

In 2008, 15 new explorations permits were acquired by Gissartneftgaz and geophysical surveys are currently in hand.

Annual gas production is planned to reach a level of about 5.5 billion cubic meters a year from its present level of 4 billion cubic meters; oil and gas condensate production is anticipated to reach 450,000 tonnes a year.

Zeromax is currently in advanced negotiations with Gazprom over terms and conditions of Gazprom becoming a shareholder in Gissarneftgaz.