Kazmunaigaz Exploration Regulatory News (KMG)

PRESS-RELEASE

KMG EP announces operating results for the first nine months of 2012

Astana, 18 October, 2012. JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company") announces that in the first nine months of 2012 it produced 9,108 thousand tonnes of crude oil (246 kbopd), including the Company's stakes in Kazgermunai (KGM), CCEL and PetroKazakhstan Inc. (PKI) which is 100 thousand tonnes or 1% less than in the same period of 2011.

JSC Uzenmunaigas (UMG) produced 3,699 thousand tonnes (99 kbopd), which is 90 thousand tonnes less than in the same period of 2011. JSC Embamunaigas (EMG) produced 2,096 thousand tonnes (56 kbopd), which is almost the same as in the nine months of 2011. The total volume of the oil produced at UMG and EMG is 5,794 thousand tonnes of oil (156 kbopd).

Taking into account results of the first nine months of the year, the Company expects annual production in UMG in 2012 to be 4.9 mln. tonnes (99 kbopd). The Company expects that EMG will achieve its initial plan of 2.8 mln. tonnes. Thus, it is expected that the total volume of the oil produced at UMG and EMG in 2012 will be 7.7 mln. tonnes (156 kbopd).

The Company's share in the production from KGM, CCEL and PKI for the first nine months of 2012 amounted to 3,313 thousand tonnes of crude oil (91 kbopd), about the same as in the first nine months of 2011. The Company's shares in production plans of KGM, CCEL and PKI remain as 4.4 mln. tonnes (91 kbopd) in 2012.

In the first nine months of 2012 the Company's export and domestic sales from the UMG and EMG were 4,637 thousand tonnes (125 kbopd) and 1,206 thousand tonnes (32 kbopd) respectively. The Company's share in the sales from KGM, CCEL and PKI was 3,407 thousand tonnes of crude oil (94 kbopd), including 2,522 thousand tonnes (70 kbopd) or 74% of total sales supplied to export markets.

The Company informs that in line with the announced modernization program, in the beginning of October 2012 the Company has successfully completed construction of the first horizontal well in Uzen field with daily production flow rate exceeding 22 tonnes. The Company plans to start construction of the second horizontal well by the end of 2012.

NOTES TO EDITORS

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2011 was 12.3mt (an average of 250 kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The total volume of proved and probable reserves, as at the end of 2011 was 226mt (1.7bn bbl), including shares in the associates of about 2.1 bn barrels. The Company's shares are listed on the 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. The International rating agency Standard & Poor's (S&P) confirmed KMG EP's "BBB-" corporate credit rating in December 2011.

For further details please contact us at:

«KMG EP». Investor Relations (+7 7172 97 5433)

Asel Kaliyeva

e-mail: ir@kmgep.kz 

«KMG EP». Public Relations (+7 7172 97 7915)

Zhuldyz Dzhumadilova

e-mail: pr@kmgep.kz

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.