5th Feb 2008 07:36
JSC KazMunaiGas Exploration Prod05 February 2008 PRESS - RELEASE JSC KazMunaiGas Exploration Production announces an 18 % increase in Proved and Probable Oil Reserves Astana, 5 February 2008 • 18% increase in Proved and Probable reserves to 1.8 billion barrels • Reserve replacement ratio in 2007 of 490% • Reserves-to-production ratio of 25 years JSC KazMunaiGas Exploration Production ("KMG EP" or the "Company") todayannounced the results of an Assessment of Oil and Gas Reserves and Resources, asat 31 December, 2007. In accordance with the report of the independent energyconsulting firm Gaffney, Cline & Associates ("GCA"), Proved plus Probable (2P)reserves were 240.0 million tonnes (1,767 million barrels), excluding KMG EP'sinterests in Kazgermunai and CCEL (Karazhanbasmunai). This represents an 18.1 % increase in 2P oil reserves compared to the beginningof 2007. Taking into account the amount of oil produced during 2007, the 2Preserves increased by 22.8%. The Reserves Replacement Ratio (the ratio of thereserves increase to production during 2007) was 490%. Askar Balzhanov, the CEO of the Company, said: "The main reason for the reservesincrease is a revision of the Uzen field development plan. Under the new plan,approved by the appropriate authorities, the current production level can besustained for approximately the next 10 years, at least five years longer thanoriginally envisioned. The extension of the production plateau of our coreportfolio will be achieved through the application of new technologies,additional drilling and the implementation of a modified system of waterflooding. We are very pleased that our strong technical expertise allows KMG EPto significantly improve the efficiency of oil recovery from our mature fields." It is expected that the updated production profile can be achieved through anadditional capital investment of approximately US$2.0 billion. A significantportion of this increase is attributable to the drilling of approximately 1,800additional new wells over the next 15 years. Proved Oil Reserves (1P) have increased by 9.6 % to 102.1 million tonnes (751.6million barrels), which is 9.0 million tonnes (66.2 million barrels) more thanat the end of 2006. Proved, Probable and Possible" (3P) reserves stand at 282.5million tonnes (2, 079.2 million barrels) as at the end of 2007. In addition to the core assets of its two production units OzenMunaiGas andEmbaMunaiGas, KMG EP owns 50% stakes in Kazgermunai and CCEL (Karazhanbasmunai).The most recent available estimates of 2P oil reserves attributed to KMG EP fromthese interests are 20.3 million tonnes (155 million barrels) at Kazgermunai,estimated as of 30 September 2006, and 32.8 million tonnes (219 million barrels)at Karazhanbasmunai estimated as of 16 April of 2007. NOTES TO EDITORS: KMG EP is the 2nd largest Kazakh oil producer with over 10.6 mmt (217 kbopd) ofcrude oil production in 2007 including shares in production of Kazgermunai andCCEL. The Company's shares are listed on Kazakhstan Stock Exchange and the GDRsare listed on London Stock Exchange. The Company raised approximately US$2bn inits IPO in September of 2006. The revised reserves estimates performed by GCA are based on the assumptions ofunchanged tax regime. The Results of Assessment of Oil and Gas Reserves and Resources as at 31December, 2007 Reserves Production Reserves at 31/12/2006 Adjustments At 31/12/2007 1P, MMtonnes. 93.1 18.5 102.1 2P, MMtonnes. 203.2 9.53 46.3 240.0 3P, MMtonnes. 288.0 4.05 282.51P, MMBbls. 685.4 136.3 751.6 2P, MMBbls. 1,494.9 70.1 342.3 1,767.1 3P, MMBbls. 2,118.7 30.6 2,079.2 Note: MMtonnes = million metric tons; MMBbls = million barrels More detailed information from the GCA report will be published in the InvestorRelations, Other Reports section of the corporate web site: http://www.kmgep.kz. For further details please contact us at: KMG EP, Public Relations (+7 7172 977 600, +7 7172 977 924) Zukhra Sultanova E-mail: [email protected] KMG EP, Investor Relations (+7 7172 975 433) Alexander Gladyshev E-mail: [email protected] WMC Communications Ltd / Pelham PR (+44 20 3178 4418) 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 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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