JSC KazMunaiGas Exp KMG Closing of Karpovskiy deal

  JSC KazMunaiGas Exp (KMG) - Closing of Karpovskiy deal

RNS Number : 3012R
JSC KazMunaiGas Exploration Prod
16 November 2012



                                PRESS RELEASE


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 


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 

For further details please contact:

KMG EP. Investor Relations (+7 7172 97 54 33)

Asel Kaliyeva

E-mail: ir@kmgep.kz

KMG EP. Public Relations (+7 7172 97 79 15)

Zhuldyz Dzhumadilova

E-mail: pr@kmgep.kz

Forward-looking statements

This  document  includes  statements  that  are,  or  may  be  deemed  to  be, 
''forward-looking  statements''.  These  forward-looking  statements  can   be 
identified by  the  use  of forward-looking  terminology  including,  but  not 
limited  to,   the   terms   ''believes'',   ''estimates'',   ''anticipates'', 
''expects'', ''intends'', ''may'', ''target'', ''will'', or ''should'' or,  in 
each case, their negative or other variations or comparable terminology, or by
discussions  of  strategy,   plans,  objectives,  goals,   future  events   or 
intentions. These forward-looking statements include all matters that are  not 
historical facts. They include, but  are not limited to, statements  regarding 
the Company's  intentions,  beliefs  and statements  of  current  expectations 
concerning,  amongst  other  things,  the  Company's  results  of  operations, 
financial condition,  liquidity,  prospects, growth,  potential  acquisitions, 
strategies and as to  the industries in which  the Company operates. By  their 
nature, forward-looking statements involve  risk and uncertainty because  they 
relate to  future  events  and  circumstances  that  may  or  may  not  occur. 
Forward-looking statements are  not guarantees of  future performance and  the 
actual results of the Company's operations, financial condition and  liquidity 
and the development  of the country  and the industries  in which the  Company 
operates may differ materially from those  described in, or suggested by,  the 
forward-looking statements contained  in this document.  The Company does  not 
intend,  and  does  not  assume  any  obligation,  to  update  or  revise  any 
forward-looking statements or industry information  set out in this  document, 
whether as  a result  of  new information,  future  events or  otherwise.  The 
Company does  not make  any representation,  warranty or  prediction that  the 
results anticipated by such forward-looking statements will be achieved.

                     This information is provided by RNS
           The company news service from the London Stock Exchange


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