Kazmunaigaz Exploration Regulatory News (KMG)

30 Oct 2006 14:00

JSC KazMunaiGas Exploration Prod30 October 2006 ** NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN** ipo stabilisation process ends ahead of schedule Following the successful placement of 23,086,791 newly issued ordinary shares(the "Global Offer") announced on 29 September 2006, JSC KazMunaiGas ExplorationProduction ("KMG EP" or the "Company") is pleased to announce that it hasreceived notice of the end of potential stabilisation activities from thestabilisation manager acting on behalf of the underwriters (the "StabilisationManager"). The Stabilisation Manager's last stabilisation activity was on 12October and the stabilisation period ended on 27 October, one week before it wasdue to end. Under the over-allotment structure, the underwriters have placed 2,589,442existing ordinary shares on behalf of JSC National Company KazMunaiGas which hadbeen sold to the underwriters for the purpose of making over-allotments and toconduct stabilisation activities. Together the Global Offer and the placement ofexisting ordinary shares amounted to a final total offer size of approximatelyUS$2.3 billion. Enquiries: KMG EP Press Office (+7 3172 97 79 08) Lyazzat Kokkozova (E-mail: pr@kmgep.kz) KMG EP Investor Relations (+7 3172 97 54 33) Alexander Gladyshev (E-mail: ir@kmgep.kz) Citigate Dewe Rogerson (+44 20 7638 9571) Martin Jackson David Westover Notes to Editors JSC KazMunaiGas Exploration Production, headquartered in Astana, is the thirdlargest crude oil producer in the Republic of Kazakhstan in terms of annualproduction volume based on 2005 data*. The Company had proved plus probable oil reserves of approximately 1,515 millionbarrels as at 31 December 2005** and average daily oil production in 2005 of 188thousand barrels per day. The Company extracts hydrocarbon resources from 44oil and gas fields located in the Atyrau and Mangistau regions in westernKazakhstan and is also engaged in onshore exploration activities, concentratedin the same areas. The Company is majority owned by JSC NC KazMunaiGas ("NCKMG"), the national oil and gas company which is controlled by Kazakh state viastate holding company JSC Samruk. The Company's total revenues increased from KZT 178 billion (approx. US$1.2billion) in 2003 to KZT 237 billion (approx. US$1.7 billion) in 2004 and to KZT346 billion (approx. US$2.6 billion) in 2005. Its profit after tax fromcontinuing operations increased from KZT 7.4 billion (approx. US$50 million) in2003 to KZT 13.2 billion (approx. US$97 million) in 2004 and to KZT 43.8 billion(approx. US$329 million) in 2005. In the five months ended 31 May 2006, theCompany's total revenues were KZT 171 billion (approx. US$1.3 billion) and itsprofit after tax from continuing operations was KZT 41.4 billion (approx. US$322million). The total number of issued and placed ordinary shares of the Company is70,220,935 of which 43,087,006 or 61.36% will be owned by NC KMG following theexercise of the put option by the Underwriters while the remaining shares areowned by a wide range of international and Kazakhstan investors. The Company also has 4,136,107 issued and placed preferred shares. ABN AMRO Rothschild and Credit Suisse acted as Joint Global Coordinators andJoint Bookrunners for the Global Offer, Visor Capital acted as Domestic LeadManager and Domestic Settlement Agent. * Source: Kazakhstan Ministry of Energy and Mineral Resources ** Source: Gaffney, Cline & Associates report, produced using SPE/WPCdefinitions *** Some of the information in this press release may contain projections or otherforward-looking statements regarding future events or the future financialperformance of the Company. You can identify forward looking statements by termssuch as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. TheCompany wishes to caution you that these statements are only predictions andthat actual events or results may differ materially. The Company does notintend to update these statements to reflect any events or circumstancesoccurring after the date hereof or to reflect the occurrence of unanticipatedevents. Many factors could cause the actual results to differ materially fromthose contained in projections or forward-looking statements of the Company,including, among others, general economic conditions, the competitiveenvironment, risks associated with operating in Kazakhstan, market change in theoil and gas industry, as well as many other risks specifically related to theCompany and its operations. Neither this press release nor any copy of it may be taken or transmitted intothe United States, Australia, Canada or Japan. This press release does notconstitute or form part of any offer or invitation to sell, or any solicitationof any offer to purchase nor shall it (or any part of it) or the fact of itsdistribution, form the basis of, or be relied on in connection with, anycontract therefore. The offer and the distribution of this press release andother information in connection with the listing and offer in certainjurisdictions may be restricted by law and persons into whose possession anydocument or other information referred to herein comes should inform themselvesabout and observe any such restriction. Any failure to comply with theserestrictions may constitute a violation of the securities laws of any suchjurisdiction. This communication is only directed at (i) persons who are outside the UnitedKingdom or (ii) to investment professionals falling within Article 19(5) of theFinancial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it maylawfully be communicated, falling within Article 49(2)(a) to (d) of the Order(all such persons together being referred to as "relevant persons"). The GDRswill only be made available to, and any invitation, offer or agreement tosubscribe, purchase or otherwise acquire such securities will be engaged in onlywith, relevant persons. Any person who is not a relevant person should not actor rely on this communication or any of its contents. Stabilisation/FSA This document is an advertisement for the purposes of the applicable measuresimplementing the Prospectus Directive and does not constitute or form part ofany offer or invitation to sell or issue or any solicitation of any offer topurchase or subscribe for any securities. These materials are not an offer for sale of any securities of the Company inthe United States. Any securities of the Company may not be offered or sold inthe United States absent registration or an exemption from registration underthe U.S. Securities Act of 1933, as amended. The Company has not registered anddoes not intend to register any portion of the offering in the United States orto conduct a public offering of any securities in the United States. Information contained in this press release does not constitute a public offeror an advertisement of the GDRs in Kazakhstan, is not an offer, or an invitationto make offers, to purchase GDRs in Kazakhstan, and must not be passed on tothird parties or otherwise be made publicly available in Kazakhstan. The GDRshave not been and will not be registered in Kazakhstan and are not intended for"placement" or "public circulation" in Kazakhstan. ABN AMRO Rothschild (the unincorporated equity capital markets joint venturebetween ABN AMRO Bank N.V and NM Rothschild & Sons Limited) and Credit SuisseSecurities (Europe) Limited, each of which are regulated in the United Kingdomby the Financial Services Authority, acted exclusively for the Company andno-one else in connection with the Offering and will not be responsible to anyother person for providing the protections afforded to their respective clientsor for providing advice in relation to the Offering. This information is provided by RNS The company news service from the London Stock Exchange