KMG Announces Acquisition of 50% Stake in Ural Group Limited
OREANDA-NEWS. March 14, 2011. 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
KMG EP will pay USD 149.1m for the 50% stake in UGL, including USD 61.3m for shares and USD 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
Kenzhebek Ibrashev, the CEO of KMG EP, said, “We assess the Fedorovskiy block as a very promising and attractive asset. Acquisition of a stake in the block gives us access to a new region, where we intend to develop actively. This transaction is a good addition to our portfolio of exploration assets. This is another step in implementation of KMG EP’s strategy which puts a strong emphasis on organic growth through exploration.”
The acquisition was approved by the KMG EP Board of Directors and the seller’s Board of Directors and is subject to regulatory approvals. Some of the necessary approvals are already obtained. The deal will be closed upon receiving the remaining approvals.
Комментарии