JSC KazMunaiGas Exploration Production announces the closing of transaction on sale of 49% of shares in KS EP Investments BV
Astana, November 16, 2012. JSC KazMunaiGas Exploration Production ("KMG EP" or the "Company") announces the closing of transaction on sale of 49% of shares in KS EP Investments BV to subsidiary of MOL Hungarian Oil and Gas Plc. ("MOL"). KS EP Investments BV owns 100% interest in the LLP Karpovskiy Severniy which is a subsoil use right holder under the Contract for Exploration of Oil, Gas and Condensate at Karpovskiy Severniy contract area in the Western Kazakhstan region. Estimate of prospective recoverable resources of hydrocarbons (P50) of the Karpovskiy Severniy block is 240 MMboe. The final selling price of the 49% share in KS EP Investments BV exceeds the purchase price.
NOTES TO EDITORS
KMG EP is among the top three Kazakh oil and gas producers. Its overall production in 2011 was 12.3mt (an average of 250 kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The total volume of proved and probable reserves, as at the end of 2011, was 226mt (1.7bn bbl), including shares in the associates of about 2.1 bn barrels. The Company's shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on the London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. The international rating agency Standard & Poor's (S&P) confirmed KMG EP's "BBB-" corporate credit rating in December 2011.
The Karpovskiy Severniy block is located approximately 40 km northwest of Uralsk, in the vicinity of Fedorovskiy block and existing discoveries, at the northern edge of the Caspian Depression. The license area is 1,670 sqkm. As a result of previous exploration activities, the area is extensively covered by seismic data and information gathered from numerous wells proves the presence of a working hydrocarbon system. Remaining, planned work programme includes the drilling of two deep pre-salt exploration wells along with minor seismic acquisition.
For further details please contact:
KMG EP. Investor Relations (+7 7172 97 54 33)
KMG EP. Public Relations (+7 7172 97 79 15)
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