24th Feb 2009 08:01
PRESS RELEASE
KMG EP announces increase in 2P reserves
Аstana, 24 February 2009. JSC КаzМunaiGas Exploration Production ("КМG EP" or the "Company") today announces results of the annual audit of oil and gas reserves and resources, as at 31 December, 2008.
According to the report by the independent energy consulting firm Gaffney, Cline & Associates ("GCA"), Proved plus Probable (2P) reserves were 241.180 million tonnes (1,775 million barrels), excluding KMG EP's interests in Kazgermunai and CCEL (Karazhanbasmunai). This represents a 0.5 % increase in 2P oil reserves compared to the year ended 31 December, 2007. Taking into account the amount of oil produced during 2008, the 2P reserves increased by 10.7m tonnes (78m barrels). The Reserves Replacement Ratio (the ratio of the replacement of production with reserves during the year) was 113%. The Reserves-to-Production ratio at the end of 2008 was 25 years.
Askar Balzhanov, the CEO of the Company, said:
"We are pleased to be able to announce such positive results for the annual reserves and resources audit. The reserves increase shows rational exploitation of existing reserves. This has been achieved through the use of new technology and the skill and professionalism of our staff. KMG EP has demonstrated that it is clearly capable of maintaining stable production whilst replenishing its reserves."
Proved Oil Reserves (1P) are 95.554 million tonnes (702.9 million barrels). Proved, Probable and Possible (3P) reserves stand at 281.583 million tonnes (2, 071.1 million barrels).
Notes to Editors
KMG EP is the second largest oil producer in Kazakhstan with over 9 530 mmt (215 kbopd) of crude oil production in 2007 and 7 354 thousand tonnes of oil exported. There was 240 mmt (1.8bn bbl) of proved and probable reserves at the end of 2007 (over 2 bn bbl including interests in Kazgermunai and CCEL). In 2007 KMG EP acquired 50% interest in JSC Kazgermunai and holding company CCEL (that owns "Karazhanbasmunai"). The Company's shares are listed on the Kazakh Stock Exchange and the GDRs are listed on the London Stock Exchange. The Company raised over US$2bn as a result of its IPO in September of 2006. International rating agency Standard & Poor's (S&P) increased the Corporate Governance Score of KMG EP from CGS 5+ to CGS 6 and confirmed its «BB+» corporate credit rating in November 2008.
The Results of Assessment of Oil and Gas Reserves and Resources as at 31 December, 2008
|
Reserves at 31/12/2007 |
Production |
Adjustments |
Reserves at 31/12/2008 |
|
|
1P, MMtonnes. 2P, MMtonnes. 3P, MMtonnes. |
102.1 240.0 282.5 |
9.47 |
2,90 10.70 8.53 |
95 544 241 180 281 583 |
|
1P MMBbls. 2P MMBbls. 3P MMBbls. |
751.6 1 767.1 2 079.2 |
69.7 |
20.94 77.74 61.47 |
702.9 1775.2 2071.1 |
For additional information please contact: KMG EP Public Relations (+7 7172 977600, +7 7172 977908) Mr Mikhail Dorofeyev e-mail: [email protected] Investor Relations (+7 7172 975433)
Ms Asel Kalieva
e-mail: [email protected] Pelham PR (+44 203 178 44 18) Mrs Elena Dobson e-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 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.
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