/KASE, May 29, 07/ - Exploration Production KazMunayGas JSC (Astana),
shares of which are traded in Kazakhstan stock exchange's (KASE)
category "A" official list had spread today the press-release, in which
the following is informed:
Quotation begin
Exploration Production KazMunayGas JSC (EP KMG or Company)
announced today about receiving of option for purchasing of 50%-ge stake in
CITIC Canada Petroleum Limited (earlier Nations Energy Company Ltd)
("CCPL") from National Company KazMunayGas JSC (NC KMG).
The main asset of CCPL is 94.62% of shareholders' capital, representing
100%-ge control in Karazhanbasmunay JSC (KBM), the large oil-gas
company, working the field Karazhanbas in western Kazakhstan.
On October 25 Chinese company CITIC Group ("CITIC") had reached an
agreement about purchasing of CСPL for $1.91 bn considering the definite
corrections. Accepting the permission for the deal, on December 28, 2006
CITIC provided NC KMG with option for 1 year.
Option gives the right to the Company for purchasing of 50%-ge stake in
CCPL at the cost, equal to 50% from price of deal, paid by СITIC, considering
some definite corrections. In case of realization of the option $150 m.
from sum of deal will be financed from own funds and will be the subject
of definite priority income from capital investments. The rest part will
be financed by borrowed funds without the right for regress in relation to
buyer.
Commenting the deal, general director of EP KMG Askar Balzhanov told:
"Kazakhstan is the priority region in our activity and option on purchasing
of Karazhanbasmunay - it is one more example of our striving to widening of
the resources' base on the terms, profitable for the Company. We are
working in close cooperation with company CITIC and are planning to realize
the option and finish the deal till the end of year 2007, after the careful
analysis of all aspects of deal and providing the approval of deal by Board of
directors"..
The decision about transfer of option to EP KMG was approved by board of
directors of the Company and NC KMG. EP KMG have to execute the option
till September 1, 2007. The term may be prolonged by mutual agreement.
Additional information:
EP KMG - is the 3rd Kazakhstan company by volumes of oil extraction, with
volume of proved and possible reserves 203.2 m. tons (1.5 bn. barrels) as of
end of year 2006 and level of extraction, exceeded 9.5 m. tons (192 th.
barrels per 24 hours) in year 2006. The recent purchasing of 50%-ge stake
in Kazgermunay had let EP KMG to take the 2nd place according to
extraction of oil in Kazakhstan. Shares of the Company had passed the
listing on Kazakhstan stock Exchange, and global depositary receipts - on
London Stock Exchange. During IPO in September 2006 the Company
borrowed about $2 bn.
National Company KMG represents the interests of state in Kazakhstan oil-
gas industry and through its daughter companies is participating in different
aspects of oil-gas business, from exploration and production to
transportation, recycling, selling and servicing. NC RMG owns about 61%
common shares of EP KMG.
CITIC Canada Petroleum Limited (earlier Nations Energy Company Ltd) was
founded in year 1996 as private Canadian company for purchasing of foreign
projects of exploration and production of oil and gas all over the world. N
year Nations Energy Company Ltd purchased from the Government of
Kazakhstan 94.62% of shareholders' capital, providing the 100%-ge control
over Karazhanbasmunay JSC. To Karazhanbasmunay JSC are belonging
100% rights on development of oil-gas field Karazhanbas in western part of
Kazakhstan till year 2020, which as of end of year 2006 according to data of
the company contains 55 m. tons (364 m. barrels) of proved reserves of oil.
In year 2006 Karazhanbasmunay JSC extracted about 2.3 m. tons (42 th.
barrels per 24 hours) of oil.
Contact information:
EP KMG JSC, Public relations (+7 3172 977924)
Lyazzat Kokkozova
e-mail: pr@kmgep.kz
EP KMG JSC, Institutional investors relations (+7 3172 975433)
e-mail: ir@kmgep.kz
WMC Communication Ltd (+ 44 207 9309030)
Yelena Dobson
e-mail: elena.dobson@wmccommunications.com
Quotation end
Full version of press-release from Exploration Production KazMunayGas
JSC is available at:
-
http://www.kase.kz/emitters/scan/rdgz/rdgz_reliz_optionNE.pdf - in
Russian language;
-
http://www.kase.kz/emitters/scan/rdgz/rdgz_reliz_optionNEe.pdf - in
English language.
[2007-05-29]