29 Jan 2009 07:00
PRESS-RELEASE
JSC KazMunaiGas Exploration Production announces operating results
for the year ended 31 December 2008
Astana, 29 January 2009.
JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company"), announced today that in the full year ended 31 December 2008 it produced 11,954 thousand tonnes of crude oil (239.8 kbopd), which includes the Company's stakes in both JV Kazgermunai LLP ("Kazgermunai") and CCEL ("Karazhanbasmunai"). This is 1,315 thousand tonnes or 12.4% more than in 2007. The increase is primarily a result of the full-year impact of the acquisitions completed in 2007.
KMG EP's production from its core assets (Uzenmunaigas and Embamunaigas) was 9,470 thousand tonnes of crude oil (190.4kbopd), approximately at the same level as in 2007.
According to preliminary data, during 2008 the Company supplied 9,079 thousand tonnes of crude oil to customers (182.6 kbopd), excluding the share in supply from Kazgermunai and Karazhanbasmunai. Of this amount, 7,008 thousand tonnes (140.9 kbopd) were exported.
The Company's share in the sales volumes from Kazgermunai and CCEL was 2,474 thousand tonnes of crude oil (49.17kbopd) in 2008 including 2,125 thousand tonnes (42.18kbopd) supplied to export markets.
KMG EP Chief Executive Officer Askar Balzhanov said:
"I am pleased to be reporting strong production figures for 2008, which are primarily a result of the successful acquisitions of 50% interests in Kazgermunai and CCEL in 2007. Today's announcement endorses KMG EP's acquisition-led strategy, in order to expand its resource base. In 2009 we will continue to identify appropriate value enhancing opportunities taking advantage of our significant financial resources and growth potential".
Notes to Editors
KMG EP is the second largest oil producer in Kazakhstan. The Company's production from its core assets in 2007 was 9,530 thousand tonnes of crude oil (192.17kbopd). Out of this amount 7,354 thousand tonnes (148.29kbopd) were supplied to export markets. The proved and probable reserves at the end of 2007 were 240 mmt (1.8bn bbl) (over 2 bn bbl including interests in Kazgermunai and CCEL). In 2007 KMG EP acquired a 50% interest in Kazgermunai and a 50% interest in holding company CCEL (that owns Karazhanbasmunai).The Company's shares are listed on the Kazakh Stock Exchange and the GDRs are listed on the London Stock Exchange. The Company raised over US$2bn as a result of its IPO in September of 2006. In 2008 the Company's Corporate Governance rating was increased by Standard & Poor's from 5+ to 6, and its credit rating was confirmed at BB+.
For additional information please contact: KMG EP Public Relations (+7 7172 977600, +7 7172 977908) Mr Mikhail Dorofeyev e-mail: pr@kmgep.kz Investor Relations (+7 7172 975433)
Mrs Asel Kalieva
e-mail: ir@kmgep.kz Pelham PR (+44 203 178 44 18) Mrs Elena Dobson e-mail: Elena.dobson@pelhampr.comForward-looking statements This document includes statements that are, or may be deemed to be, ''forward-looking statements''. These forward-looking statements can be identified by the use of forward-looking terminology, including, but not limited to, the terms ''believes'', ''estimates'', ''anticipates'', ''expects'', ''intends'', ''may'', ''target'', ''will'', or ''should'' or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They include, but are not limited to, statements regarding the Company's intentions, beliefs and statements of current expectations concerning, amongst other things, the Company's results of operations, financial condition, liquidity, prospects, growth, potential acquisitions, strategies and as to the industries in which the Company operates. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Forward-looking statements are not guarantees of future performance and the actual results of the Company's operations, financial condition and liquidity and the development of the country and the industries in which the Company operates may differ materially from those described in, or suggested by, the forward-looking statements contained in this document. The Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements or industry information set out in this document, whether as a result of new information, future events or otherwise. The Company does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved.