/KASE, March 11,11/ - KazMunaiGas Exploration Production (Astana), shares
of which are officially listed on Kazakhstan Stock Exchange (KASE), provided
to KASE the following press release of March 11, 2011:
quotation
JSC KazMunaiGas Exploration Production ("the Company" or "KMG EP") announces
that it has reached an agreement with Exploration Venture Limited (EVL) to
acquire 50% of Ural Group Limited (UGL), which owns the exploration license
for the block Fedorovskiy through 100% stake in LLP "Ural Oil and Gas" (UOG).
The block is located in Western Kazakhstan near Uralsk city in close proximity
to a number of large producing fields.
KMG EP will pay US$149.1m for the 50% stake in UGL, including US$61.3m for
shares and US$87.8m of shareholder loans (as of January 1, 2010) to be repaid
to KMG EP after commercial production starts. The final price of shareholder
loans is subject to adjustment due EVL's work program financing obligations
until the deal close. The deal will be financed with the KMG EP's own funds.
UOG operates under a Subsoil Exploration Contract that expires in May 2014
with the right to extend the contract for production of hydrocarbons. In
2008 Rozhkovskoye oil and gas field was discovered at the Fedorovskiy block.
Currently UOG is in the process of evaluating the hydrocarbons deposit.
According to the estimates approved by the RK State Commission, the block's
total recoverable gas and condensate reserves of category C1+C2 are 203.4
million barrels of oil equivalent. Gazprom's Orenburg-Western Europe gas
pipeline lies through the territory of Fedorovskiy block and the main export
oil pipeline Atyrau-Samara lies within close proximity of the block as well
as the Karachaganak-Atyrau oil pipeline which provides access to world markets
via Caspian Pipeline Consortium.
ends
The press release full version is available on KASE website at:
-
http://www.kase.kz/files/emitters/RDGZ/rdgz_reliz_110311.pdf - in Kazakh
and Russian;
-
http://www.kase.kz/files/emitters/RDGZ/rdgz_reliz_110311_eng.pdf - in
English.
[2011-03-11]