/KASE, October 9, 08/ - KazMunaiGas Exploration Production (Astana),
shares of which are traded in the official list of Kazakhstan Stock Exchange
(KASE) of the first category disseminated the press release of October 9, 2008:
Quotation start
JSC KazMunaiGas Exploration Production ("the Company" or "KMG EP")
announces that the Board of Directors of KMG EP has approved a share buy
back programme. Under the programme the Company has an option to
purchase its common shares (KASE:RDGZ KZ) listed on the Kazakhstan Stock
Exchange ("KASE") and GDRs (LSE:KMG LI) listed on the London Stock
Exchange ( "LSE") up to the aggregate amount of US$350 million. The
programme will start in the next few weeks and will take up to twelve months to
execute. Beginning of the share buy back programme will be announced
separately. The shares / GDRs will be acquired at the prevailing market price as
at the time of the purchase.
The Board believes that the current market prices of its shares and GDRs do not
reflect the true underlying value of the business and that the decrease in value
of KMG EP shares over recent months has been caused predominantly by
external factors, whilst the Company's operating and financial performance has
been strong.
The decision by the Board to buy back a portion of KMG EP common shares and
GDRs demonstrates the confidence of Management in the value and prospects
of the Company. Furthermore, this step is an effective use of existing cash
resources to the benefit of all shareholders.
The Company believes that the current net cash position, combined with strong
cash flows generated by operating activity, offers KMG EP substantial financial
flexibility in the execution of its strategy of growth through acquisition,
exploration and investment in existing oil and gas assets. The Company
confirms its near-term focus on acquiring onshore oil and gas assets in
Kazakhstan and is actively pursuing some specific opportunities.
It is expected that the National Company KazMunayGas will not be selling
shares in KMG EP into the buy back programme.
Contact information:
EP KMG, Public Relations (+7 7172 97 7600)
Mikhail Dorofeev
e-mail: pr@kmgep.kz
EP KMG, Institutional Investors Relations (+7 7172 97 7971)
Assel Kapieva
e-mail: ir@kmgep.kz
Pelham PR (+44 203 178 44 18)
Elena Dobson
e-mail: Elena.dobson@pelhampr.com
Quotation end
The full version of the press release is available at the KASE website at:
-
http://www.kase.kz/emitters/scan/rdgz/rdgz_reliz_091008.pdf - in Kazakh
and Russian;
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http://www.kase.kz/emitters/scan/rdgz/rdgz_reliz_091008e.pdf - in English.
[2008-10-09]