КаzМunaiGas Exploration Production (“КМG EP” or the “Company”) today announces results of the annual reserves audit, as at 31 December 2010.
According to the report by the independent energy consulting firm Gaffney, Cline & Associates (“GCA”), proved plus probable (2P) reserves excluding the stakes in JV Kazgermunai LLP, CCEL and PetroKazakhstan Inc. were 232 million tonnes (1,707 million barrels). The reserves replacement ratio1 at Uzen and Emba fields in 2010 was 73%, while in 2009 this figure was 25%. Reserves replacement has been achieved by further exploration, by increased levels of oil recovery in some fields, and in part due to a higher oil price. At the end of 2010 the reserves-to-production ratio was 26 years.
Since IPO of KMG EP in 2006 the Company’s proved plus probable (2P) reserves increased by 14%, while the reserves replacement ratio for the 5 years since the IPO reached 178%. According to the GCA report as of 31 December 2010 proved oil reserves (1P) are 82 million tonnes (600 million barrels), proved, probable and possible (3P) reserves stand at 266 million tonnes (1,955 million barrels).The company continues to work towards increasing its resource
Kenzhebek Ibrashev, the CEO of KMG EP, said: ”We are pleased that active drilling of new wells, additional exploration of fields under development, and return of idle wells to production has allowed us to arrest the decline of the reserves replacement rate. We consider 73% reserve replacement for the mature Uzen and Emba fields as a good result. However, this result emphasizes the need to enhance exploration activity, as rightly envisaged by our current strategy approved in 2010. Given favourable external conditions, we intend to continue investing substantial funds in exploration.”
KMG EP also has a share in proved plus probable (2P) reserves of its associates and joint ventures amounting to 67 million tonnes (475 million barrels).