Kazmunaigaz Exploration Regulatory News (KMG)

27 Apr 2007 07:46

JSC KazMunaiGas Exploration Prod27 April 2007 On Closing of Acquisition of 50% Participation Interest in JV Kazgermunai LLP Astana, 27 April 2007. JSC KazMunaiGas Exploration Production (KMG EP or theCompany) announces the closing of the transaction to acquire a 50% participationinterest in JV Kazgermunai LLP ("Kazgermunai") from JSC NC KazMunaiGas ("NC KMG"). Following the distribution of dividends by Kazgermunai a consideration paidfor the interest to NC KMG has been reduced and amounted to 118.3 bn Tenge(approximately US$969 mln). The acquisition was approved by the Board of Directors including all theindependent non-executive directors and a majority of minority investors at anExtraordinary General Meeting held on April 12, 2007. Other required formalitieshave also been completed. KMG EP separately announces that NC KMG has paid back an US$800 mln loan grantedby KMG EP in July 2006. Additional information: JSC KazMunaiGas Exploration Production, headquartered in Astana, is the 3rdlargest Kazakh oil and gas producing company with over 9.5mmt/year (192 kbopd)of crude production in 2006. 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's shares are listed on Kazakhstan Stock Exchangeand the GDRs are listed in London. The Company raised approximately US$2bn inits IPO in September of 2006. NC KMG represents the state's interests in the Kazakh oil and gas industry andis involved, through its subsidiaries, in various aspects of the oil and gasbusiness from exploration and production to transportation, refining, marketingand services. NC KMG owns approximately 61% of the ordinary shares of KMG EP. Kazgermunai is the 8th largest Kazakh oil and gas producing company with nearly3mmt/year (60 kbopd) of crude oil production in 2006 and 40.7 mmt (310 mmbbl) ofproved and probable reserves at the end of September 2006. PetroKazakhstanKumkol Resources is the other shareholder in KGM. On March 5, 2007 KMG EPannounced its agreement to acquire 50% stake in Kazgermunai from NC KMG for acash consideration of 133,3 bn Tenge with possible adjustments. Contact information: KMG EP, Public Relations (+7 3172 977908, +7 3172 977924) Lyazzat Kokkozova e-mail: pr@kmgep.kz KMG EP, Investor Relations (+7 3172 975433) Alexander Gladyshev e-mail: ir@kmgep.kz WMC Communications Ltd (+44 207 930 9030) Elena Dobson e-mail: Elena.dobson@wmccommunications.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 identifiedby the use of forward-looking terminology, including, but not limited to, theterms ''believes'', ''estimates'', ''anticipates'', ''expects'', ''intends'', ''may'', ''target'', ''will'', or ''should'' or, in each case, their negative orother variations or comparable terminology, or by discussions of strategy,plans, objectives, goals, future events or intentions. These forward-lookingstatements include all matters that are not historical facts. They include, butare not limited to, statements regarding the Company's intentions, beliefs andstatements of current expectations concerning, amongst other things, theCompany's results of operations, financial condition, liquidity, prospects,growth, potential acquisitions, strategies and as to the industries in which theCompany operates. By their nature, forward-looking statements involve risk anduncertainty because they relate to future events and circumstances that may ormay not occur. Forward-looking statements are not guarantees of futureperformance and the actual results of the Company's operations, financialcondition and liquidity and the development of the country and the industries inwhich the Company operates may differ materially from those described in, orsuggested by, the forward-looking statements contained in this document. TheCompany does not intend, and does not assume any obligation, to update or reviseany forward looking statements or industry information set out in this document,whether as a result of new information, future events or otherwise. The Companydoes not make any representation, warranty or prediction that the resultsanticipated by such forward-looking statements will be achieved. This information is provided by RNS The company news service from the London Stock Exchange