About the Offeror
The Offeror is a wholly-owned subsidiary of Zhaikmunai L.P. (togetherwith all its subsidiaries, including the Issuer, the "Group").
The Group is an independent oil and gas enterprise currently engagingin the exploration, production and sale of oil and gas products innorthwestern Kazakhstan. Its field and licence area is theChinarevskoye Field located in the northern part of the oil-richPre-Caspian Basin, one of the largest oil-producing regions in centralAsia.
The Chinarevskoye Field, approximately 274 square kilometres in size,is located in the West-Kazakhstan oblast, near the border betweenKazakhstan and Russia, and close to the main international railwaylines as well as to several major oil and gas pipelines. TheChinarevskoye Field has been the Group's sole source of production.According to management estimates based on data included in theIssuer's report on reserves and resources prepared by Ryder ScottCompany L.P. ("Ryder Scott") as at 1 January 2012 (the "2012 RyderScott Report"), the estimated gross proved plus probable hydrocarbonreserves at the Chinarevskoye Field were 521.6millionbarrel of oilequivalent ("boe"), of which 201.9million bbl was crude oil andcondensate, 79.3million barrels ("bbl") wasliquefied petroleum gas("LPG") and 240.4millionboe was sales gas. Management has alsoestimated, based on the Issuer's report on reserves and resourcesprepared by Ryder Scott as at 1 July 2009, that the Chinarevskoye Fieldcontains approximately 556.3millionboe of possible hydrocarbonreserves.
The Group's operational facilities are located in the ChinarevskoyeField and, as at 30June 2012, consisted of an oil processing facilitycapable of processing 400,000 tonnes per year of crude oil, multipleoil gathering and transportation lines including an oil pipeline fromthe field to its oil loading rail terminal in Rostoshi near Uralsk, a17 kilometre gas pipeline from the field to the Orenburg? Novopskovpipeline, a gas powered electricity generation system, warehousefacilities, an employee field camp and the gas treatment facility.
The gas treatment facility became fully operational in 2011 and hasenabled the Group to produce marketable liquid condensate (a productlighter than Brent crude oil) from the gas condensate stream. The gastreatment facility has enabled the Group to increase its dailyproduction of crude oil, stabilised condensate, dry gas and LPG from anaverage daily production of 9,741boepd during the six months ended 30June 2011 to an average daily production of 35,298boepd during the sixmonths ended 30 June 2012.
As of 30 June 2012, the Group had 44 exploration, appraisal andproduction wells, of which 23 wells were producing, one well was undertest operations, three wells were installed as a water injector andfive wells were under drilling and workover operations.
This press release, the Offer to Purchase and the documentsincorporated by reference into the Offer to Purchase contain certainstatements that are neither reported financial results nor otherhistorical information. These statements are forward-looking statementswithin the meaning of Section 27A of the Securities Act of 1933, asamended, and Section 21E of the Securities Exchange Act of 1934, asamended. These statements include information with respect to theOfferor's financial condition, results of operations and businesses,strategy, plans, objectives and the expected impact of this offer onthe foregoing. Words such as "anticipates", "expects", "should", "intends","plans", "believes", "outlook", "seeks", "estimates", "targets", "may","will", "continue", "project" and similarexpressions, as well as statements in the future tense, identifyforward-looking statements.
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