JSC Exploration and Production KazMynaiGas acquired a 50% of stake of Ural Group Limited

/IRBIS, March 11, 2011/ - JSC EP KazMunaiGas ("KMG EP") has acquired 50% stake in Ural Group Limited, the company said in a published press release. "EP KMG" entered into an agreement with Exploration Venture Limited (EVL) to acquire 50% stake in the company" Ural Group Limited ". UGL owns 100% stake in LLC Ural Oil and Gas, which has the right to conduct exploration for subsurface hydrocarbons Fedorovsk block, located in West Kazakhstan region near the town of Uralsk in close proximity to several large existing fields. According to the report, the purchase price of a 50% stake in the "Ural Group Limited" is $149.1 million, which includes $ 61.3 million in shares and $ 87.8 million for the rights to the Shareholder loans (as at January 1, 2010). Under the deal, shareholder loans will be paid in favor of "KMG EP" after the start of commercial production. Total price consideration for Shareholder loans subject to adjustment in connection with the financing of EVL's work program prior to the date of closing. The transaction will be financed through equity RD "EP". In addition, the Urals Oil & Gas carries out exploration on Fedorovsk block in accordance with the contract on subsoil use, effective until May 2014, with the further right to contract on the extraction of raw hydrocarbon materials. It also reported that in 2008 the territory Fedorovsk block oil and gas field was discovered Rozhkovsky, whose assessment is currently UOG. According to the calculation of inventories at the end of 2010, approved by the State Commission on Reserves of Kazakhstan, the total recoverable reserves of gas and condensate C1 + C2 Fedorovsk block is 203.4 million barrels of oil equivalent. The territory of Fedorovsk block the trunk gas pipeline company Gazprom Orenburg-Western Europe. "In addition, near Fedorovsk block are export gas pipeline Atyrau-Samara pipeline and the Karachaganak-Atyrau, were providing an outlet to world markets via the Caspian Pipeline Consortium. "Fedorov block we assess as very promising and a major asset. Acquisition of stake in the block means for us out in a new region, where we intend to actively develop. This transaction successfully completes a portfolio of exploration assets of KMG and is another step in implementing the strategy of the company, which provides emphasis on accelerated growth in reserves through an active exploration,"- said Mr. Kenzhebek Ibrashev, General Director of Exploration and Production KazMunaiGas. The acquisition was approved by the resolutions of the Board of Directors of "KMG EP" and the Board of Directors Exploration Venture Limited and is subject to approval by state regulators. Part of the necessary approvals has been received. Closing is expected upon receipt of remaining approvals. [2011-03-11]