4 Mar 2010 13:00
PRESS RELEASE
KMG EP announces listing of its preferred shares on KASE and the beginning of the preferred shares buyback programme
Astana , 04 March 2010. JSC KazMunaiGas Exploration Production («The Company», «KMG EP») is pleased to announce that pursuant to the decision of the Listing committee of the Kazakhstan Stock Exchange (KASE) its preferred shares have been included in KASE's official list under the 3rd category. Shares are expected to be admitted to trading on KASE on 9 March 2010. On the same day KASE will hold the first specialized trade for the repurchase of the preferred shares of KMG EP.
The current total amount of authorized and outstanding preferred shares of KMG EP is 4,136,107. The Company has approval from its Board of Directors to repurchase up to 100 % of these preferred shares. It is expected that the buyback programme will be completed on or before 31 December 2011.
The share buyback will be carried out through a sequence of specialized trades in accordance with KASE requirements. For the first specialized trade orders for sale will be accepted from 11.30 a.m. Almaty time (ALT) through 16:00 p.m. (ALT) 9 March 2010. Settlements will be carried out by the Central Securities Depository (Almaty) by 12 March 2010 (T+3). Next trades will be administered on 10 March 2010. For information on subsequent specialized trades please refer to the web site of KASE at www.kase.kz.
Additional information explaining the procedures is available from the call center - 8 800 080 01 77 (calls are free of charge within Kazakhstan). Call centre will commence operations on 9 March 2010.
The Company will make announcements before each specialised trade, as well as announcements after each specialized trade informing of the terms and results of such trade.
The listing and the buyback programme are intended to provide preferred shareholders with greater transparency and liquidity. The majority of preferred shares are currently distributed among more than 30 000 individual shareholders, including present and former employees of KMG EP and their families.
NOTES TO EDITORS
Any preferred shareholder who wishes to sell their shares must place them on account with the Central Securities Depository on or before the time at which such shareholder makes an offer to sell the shares.
Holders of preferred shares must provide limited counter orders to sell their preferred shares. Limited counter orders must indicate a share price at which the shareholder wishes to sell their shares. This price must be denominated in tenge up to two decimal places. The amount of financial instruments specified in the order should be equal to the number of preferred shares that the shareholder wishes to sell. The order volume must be equal to the product of the amount of shares to be sold multiplied by the specified share price.
Limited orders will be accepted at the cut-off price set by the Company at the end of the specialised trade in compliance with applicable laws, regulations and Company's policies. Limited orders that specify a price equal or less than this cut-off price will be accepted and executed. Limited orders that specify a price greater than the cut-off price will not be accepted by the Company.
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 total volume of proved and probable reserves, as at the end of 2008, was 241mmt (1.8bn bbl), excluding the relevant proportion of reserves at Kazgermunai and CCEL; including the share of reserves from Kazgermunai and CCEL the 2P reserves are over 2.1 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" rate.
For further details please contact us at:
Regarding specialized trade: RFCA call-center - 8 800 080 01 77 (calls are free of charge within Kazakhstan). The call centre will commence operations on 9 March 2010.
«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 (+44207 337 15 17) Elena DobsonE-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.