/KASE, June 23, 08/ - KazMunaiGas Exploration Production JSC (Astana),
share of which are traded in the official list of Kazakhstan Stock Exchange
(KASE) of category "A", released the news.
Quotation start
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 KazMunaiGas 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
Quotation end
The full version of the press release of KazMunaiGas Exploration Production is
available at the KASE website at:
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http://www.kase.kz/emitters/scan/rdgz/rdgz_reliz_230608k.pdf - in Kazakh;
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http://www.kase.kz/emitters/scan/rdgz/rdgz_reliz_230608.pdf - in Russian;
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http://www.kase.kz/emitters/scan/rdgz/rdgz_reliz_230608e.pdf - in English.
[2008-06-23]