23rd Jun 2008 08:00
PRESS RELEASE
JSC KazMunaiGas Exploration Production
Non-deal Road-show
Astana, 23 June, 2008. The management of JSC KazMunaiGas Exploration Production ("KMG EP" or the "Company") is embarking on the Company's regular non-deal road-show and will hold a series of meetings with financial analysts and investors in Continental Europe and the UK. The principal objectives of the meetings are to update the market on the KMG EP's latest achievements, strategy and forward plans, in the context of ongoing changes in important external factors that influence the Company's operations. These factors include oil prices, cost inflation and taxation.
With regard to its main operations, KMG EP is on track to achieve its 2008 plan, to maintain stable production levels on its core fields at approximately 9.5 million tonnes. An additional 2.45 million tonnes are expected to be produced through the Company's share in Kazgermunai and CCEL.
The work on the new Kazakhstan Tax Code is still in progress and at this stage the Company has not revised its existing operational and investment plans to reflect changes in the fiscal burden. KMG EP's plans for 2009 will be announced towards the end of 2008.
The Company will also continue with the acquisition strategy and will make full use of its competitive advantages in Kazakhstan. However, in view of the current fiscal uncertainty KMG EP deems it prudent to adjust some plans for 2008 acquisitions. In particular the acquisition of 33% in PetroKazakhstan, originally planned for 1H 2008, will now be considered for completion in H2 2008.
The Company is also progressing its exploration programme, targeting the sub-salt structures at the Liman and R9 blocks. Following the results of the 2D seismic survey the Company decided to conduct a 3D seismic survey, in order to carry out a more precise evaluation of the potential resources and identify the locations for exploration drilling. The first two sub-salt wells will be drilled in 2009 - 2010.
The CEO of KMG EP, Askar Balzhanov said: "The Company is in a very strong financial position and has developed strong technical expertise, which will enable it to maintain production levels and progress its exploration programme. We enjoy the support of the National Company and continue to implement our growth strategy for the benefit of our shareholders, but consider it prudent to await clarification of the new tax regime before finalising plans for 2009 and beyond."
The road-show presentation materials are available on the Company's website: www.kmgep.kz
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Notes to editors
KMG EP is the second largest Kazakh oil producer with over 10.6 mmt (215 kbopd) of crude oil production in 2007 including shares in production of Kazgermunai and CCEL, and 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). The Company's shares are listed on Kazakh Stock Exchange and the GDRs are listed on London Stock Exchange. The Company raised over US$2bn as a result of its IPO in September of 2006.
For additional information please contact:
KMG EP Public Relations (+7 7172 977908, +7 7172 977924)
Ms Zukhra Sultanova
Email: [email protected]
KMG EP Investor Relations (+7 7172 975433)
Mr Alexander Gladyshev
Email: [email protected]
WMC Communications Ltd / Pelham PR (+44 203 178 44 18)
Mrs Elena Dobson
Email: [email protected]
Future related announcements/ statement
This document contains announcement that are, or may be deemed to be "future related announcements". These announcements can be identified by the use of future related terminology, including, but not limited to, the terms "believes", "anticipates", "estimates", "intends", "plans", "sets", "will" or"should" or, in each case, by their matching or comparable terms, or by references to the discussions, plans, objectives, goals, prospective events or intentions. These specified announcements include all the matters that are not historical facts. These include and are not limited to, the announcements related to the Company's intentions, beliefs, and statements of current expectations concerning, amongst other things, the Company's expectations on operation results, financial condition, liquidity, prospects, growth, potential acquisitions, strategies and the industries in which the Company operates. Naturally, the future related announcements bear a risk and uncertainty, since they are related to future events and circumstances, which may or may not occur. These announcements are not guarantees of the Company's future performance and the actual results of its operations, its liquidity and financial condition; and the development of the country and the industries in which the Company operates may differ from those described in, or suggested by, the future related announcements contained in this document. The Company does not intend, and does not assume any obligation, to update or revise any future related announcement or industry information set out in this document, whether as a result of new information, future developments or otherwise. The Company does not make any representation, warranty or prediction that the results anticipated by such future related announcements will be achieved.
Related Shares:
Kazmunaigaz Exploration