KazMunaiGas Exploration Production announces operating results of first nine months Y2011
October 10. KASE
JSC KazMunaiGas Exploration Production (“KMG EP” or “the Company”), announces that in the first nine months of 2011 it produced 9,207 thousand tonnes of crude oil (250kbopd) including the Company’s stakes in Kazgermunai (KGM), CCEL and PetroKazakhstan Inc. (PKI), which is 738 thousand tonnes or 7% less than in the same period of 2010.
Uzenmunaigas (UMG) produced 3,789 thousand tonnes (102kbopd), which is 685 thousand tonnes less than in the same period of 2010. Embamunaigas (EMG)produced 2,103 thousand tonnes (57kbopd), which is 21 thousand tonnes more than in the same period of last year. The total volume of the oil produced at the production facilities of UMG and EMG in the first nine months of 2011 is 5,891 thousand tonnes of oil (159kbopd), which is 664 thousand tonnes or 10% less than in the same period of last year. The results of the first nine months were negatively affected by the illegal industrial action at UMG during May-August 2011 and a number of emergency power cuts in the fields during January-April 2011 caused by severe weather conditions.
The Company’s share in the production volumes from KGM, CCEL and PKI for the nine months of 2011 amounted to 3,315 thousand tonnes of crude oil (91kbopd) which is 74 thousand tonnes or 2% less than in the same period last year in accordance with production plans of these companies.
KMG EP starts share buyback program
Oct. 10. Trend. Astana
KazMunaiGas Exploration Production (KMG EP) will commence its Share Buy Back Programme on Oct.11, 2011 in accordance with the decision made by the Board of Directors on Sept.15, 2011. The program will be executed subject to the applicable requirements of the stock exchanges and will end before Dec.31 2012.
The decision by the Board to buy back a portion of KMG EP common shares and GDRs demonstrates the confidence that management has in the fundamental value of the Company. Furthermore, the Board believes that this step is an effective use of existing cash resources for the benefit of all shareholders.
Under the Buy Back Programme the Company has the option to purchase its common shares (KASE:RDGZ) listed on the Kazakhstan Stock Exchange (“KASE”) and GDRs (LSE:KMG) listed on the London Stock Exchange (“LSE”) up to an aggregate value of $300 million. Shares and GDRs will be acquired at the prevailing market price at the time of purchase. The Company will be making daily announcements summarizing the results of each day’s trading prior to the opening of LSE for trading on the following business day.
KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2010 was 13.3mt (an average of 270kbopd) of crude oil, including the Company’s share in Kazgermunai, CCEL, PKI and NBK. The total volume of proved and probable reserves, as at the end of 2010 was 232mt (1.7bn bbl), including shares in the associates – about 2.2 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 “BB+” corporate credit rating in July 2010 and “GAMMA-6” rating in September 2011.