5th Mar 2007 07:04
JSC KazMunaiGas Exploration Prod05 March 2007 KazMunaiGas EP Implements Acquisition Strategy. KMG EP will acquire 50% stake in JV Kazgermunai LLP from NC KazMunaiGas Astana, 5 March 2007. KazMunaiGas Exploration Production ("KMG EP" or the "Company") announced today its agreement to acquire a 50% stake in JV KazgermunaiLLP ("KGM") from National Company KazMunaiGas ("NC KMG") for a cashconsideration of 133.3 billion Tenge (approximately US$1.07 bn). This transaction is the first significant step in the company's implementationof its growth strategy described at the time of the Initial Public Offering inSeptember 2006. Kazgermunai is an attractive addition to the Company's portfoliowith its young assets, low production costs and a stable tax regime. The dealwill further diversify the KMG EP operations and expand the Company's presenceto the new oil and gas region in Kazakhstan. The Chief Executive Officer of KMG EP, Mr. Askar Balzhanov, said "We are excitedto make our first significant acquisition, which will benefit our shareholdersby providing immediate growth in reserves and production and further enhancingKMG EP's position as a leading Kazakh oil and gas producer". The independent non-executive directors unanimously approved the acquisition,which is subject to satisfaction of a number of conditions including theapproval of a majority of independent shareholders and GDR holders at anExtraordinary General Meeting scheduled for 12 April 2007 in Astana. The Boardof Directors of KMG EP has received an opinion from Credit Suisse that theconsideration to be paid by the Company in the acquisition of Kazgermunai isfair to KMG EP from a financial point of view. If approved, the transaction isexpected to close within a few weeks of the EGM. The purchase will be financedfrom the existing financial resources of KMG EP and will be accounted for as anequity investment. ________________________________________________________________________ Notes to Editors: The Company's senior executives will hold an investor conference call to discussthe transaction at 8 p.m. Astana time (2 p.m. London) on Monday,5 March 2007.Webcast access instructions and presentation files will be posted on theCompany's website www.kmgep.kz. KMG EP is the 3rd largest Kazakh oil and gas producing company with 205.9 mmt(1.5 bn bbl) of proved and probable reserves at the end of 2005 and over 9.5mmt/year (190 mbopd ) of crude production in 2006. The acquisition of 50% ofKazgermunai would make KMG EP the second largest Kazakh oil and gas producer.The Company's shares are listed on Kazakhstan Stock Exchange and the GDRs arelisted in London. The company raised approximately US$2 billion in itssuccessful IPO in September of 2006. National Company KMG represents the state's interests in the Kazakh oil and gasindustry and is involved, through its subsidiaries, in various aspects of theoil and gas business from exploration and production to transportation,refining, marketing and services. NC KMG owns approximately 61% of the ordinaryshares of KMG EP. Kazgermunai is the 8th largest Kazakh oil and gas producing company with nearly3mmt/year (60 mbopd) 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. For additional information please contact: KMG EP, Public Relations (+7 317 297 7908, +7 317 297 7924)Ms. Lyazzat KokkozovaE-mail: [email protected] KMG EP, Investor Relations (+7 317 297 5433)Mr. Alexander GladyshevE-mail: [email protected] WMC Communications Ltd (+44 207 930 9030)Elena Dobsone-mail: [email protected] 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 ExchangeRelated Shares:
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