8th Mar 2007 07:02
Kazakhmys PLC08 March 2007 Kazakhmys PLC ("Kazakhmys") announces move into the petroleum sector Kazakhmys today announces that agreement has been reached to acquireDostan-Temir LLP, a Kazakhstan based company, which holds the right to sign thecontract to undertake further exploration for oil and gas in the East AkzharExploration Block ("East Akzhar") in Western Kazakhstan. In 2005, Dostan-TemirLLP successfully participated in a Government tender and was awarded the rightto sign the exploration contract with the Government of Kazakhstan. Theacquisition is subject to fulfilment of certain conditions, with completionexpected within the next few months. East Akzhar, a 602km2 exploration block, is located to the south of Aktobe in aregion home to numerous oil and gas operations on the eastern fringe of theCaspian depression. East Akzhar is in close proximity to the Loktibai-Kenkiyakoil pipeline and the Kenkiyak-Atyrau gas pipeline. A number of 2D and 3D seismic surveys and other exploration activities have beenperformed on the block including the drilling of exploration wells. Furtherexploration work will be carried out to determine the block's full potential. This transaction represents Kazakhmys' first entry into the petroleum sector, inline with its stated strategy to seek growth opportunities across naturalresources within Kazakhstan and the region. The Board is considering a number ofoptions for the development of East Akzhar. Dostan-Temir LLP is a Kazakhstan registered company with gross assets of $0.1million. It has been acquired from Total Commerce Solutions Limited, a privatelyowned company. Vladimir Kim, Kazakhmys Executive Chairman said: "I am excited by this move into the oil and gas sector. It is a first step todelivering on our strategy of diversification of our business. Kazakhstan is acountry rich in natural resources and we will continue to seek out furtheropportunities for our shareholders." For further information please contact: Matthew Hird, Company SecretaryKazakhmys PLC Tel:+44 20 7901 7800 Robin WalkerAndrew MitchellFinsbury Tel:+44 20 7251 3801 - ends - Notes to Editors Kazakhmys is a London listed natural resources company with operations inKazakhstan. Kazakhmys' principal business is the mining, processing, smelting,refining and sale of copper and copper products, including copper cathode andcopper rod, and is carried on by the Company's main subsidiary KazakhmysCorporation LLC. The Group's operations are vertically integrated. Kazakhmysoperates 19 open pit and underground mines and two smelting and refiningcomplexes in the Republic of Kazakhstan. Kazakhmys also owns significant railinfrastructure in Kazakhstan and MKM, a copper products fabrication company inGermany. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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