Volume 3, issue #2 - 22-01-1998

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Chaparral in 127 mm barrel Kazakh oilfield

Dec. 2, 1997 Chaparral Resources Inc. expects to pump and sell crude oil from the 127 million barrel Karakuduk oil field in western Kazakhstan before the year is over.
Chaparral said the signing of definitive documents regarding the previously announced issuance of $ 22.5 million of convertible preferred stock is allowing the production plan to move forward.
Chaparral owns a 50 % interest in Karakuduk-Munai Inc., the operator of the field. The majority of the other 50 % ownership is held by Kazakh Oil, the Kazakhstan national petroleum company.
Under the terms of the financing plan, the 225,000 shares of convertible preferred stock will have voting and registration rights and will be issued in three equal series of $ 7.5 million each with conversion prices of $ 2.25, $ 3 and $ 4.25/share, respectively.