KMG EP: Additional 66 Wells Drilled for Ozenmunaigas Increases 2016 CAPEX Spend by 17%

JSC KazMunaiGas Exploration Production (“KMG EP” or the “Company”) held its regular Board of Directors (“the Board”) meeting, where the Board approved a revision of the 2016 capital expenditures plan.

Consequently, capital expenditures in 2016 are expected to be around 103 billion Tenge (US$286m1), which is 14.7 billion Tenge or 17% more than the previous guidance. Increase in capital expenditures is driven by the additional drilling of 66 wells at JSC “Ozenmunaigas” (“OMG”), which will improve production in 2017 and the following years. These expenditures were approved after the full evaluation of the economic feasibility of additional well drilling. Therefore, it is now planned to drill 249 wells in total at both OMG and JSC “Embamunaigas”.