26 May 2010 13:10
PRESS RELEASE
KMG EP Board Meeting
Astana, 26 May 2010. The meeting of the JSC KazMunaiGas Exploration Production ("The Company", "KMG EP") Board of Directors ("the Board") took place following the yesterday's AGM.
At the meeting the Board agreed to adjust the 2010 production plan at the Company's key assets (Uzenmunaigas and Embamunaigas) from 9,200 to 9,082 thousand tonnes reflecting the loss of production caused by the industrial action at Uzenmunaigas earlier this year.
Furthermore, the Board decided to reduce this year's Capex from 95 bn Tenge (US$633m) to 83 bn Tenge (US$555m), including the reduction of expenditure on exploration to 4 bn Tenge (US$27m). This is mainly due to changes of the timetable of several construction projects and adjustments to the drilling program of the Company.
The Board considered a number of suggestions regarding changes to payment structure and salary increase for the employees of the production units of the Company and approved measures necessary to complete this work.
The Board of Directors of KMG EP has also considered a range of commercial issues, staffing and organizational matters.
Notes to Editors
KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2009 was 11.5mmt (an average of 232kbopd) of crude oil, including the Company's share in Kazgermunai and CCEL. The volume of proved and probable reserves (2P) of KMG EP as at the end of 2009 was 234mmt (1.7bn barrels); while including the share of reserves from associates and joint ventures, preliminary about 2.2 bn barrels. The Company's shares are listed on Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. In July 2009 International rating agency Standard & Poor's (S&P) confirmed KMG EP's "BB+" corporate credit rating and assigned the Company "GAMMA-6" level.
For further details please contact us at:
KMG EP. Public Relations (+7 7172 97 7600)
Daulet Zhumadil
E-mail: pr@kmgep.kz
KMG EP. Investor Relations (+7 7172 97 5433)
Asel Kaliyeva
E-mail: ir@kmgep.kz
Pelham PR (+44 207 861 3147)
Elena Dobson
E-mail: Elena.dobson@pelhampr.com
Forward-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.