Zhaikmunai LP announces reduction in crude oil production due to shortage of rail cars
Zhaikmunai L.P. (LSE: ZKM, the ‘Company’, ‘Zhaikmunai’), an independent oil and gas enterprise operating in Northwestern Kazakhstan today announces that it has temporarily reduced daily oil production due to an unexpected shortage of available rail cars for oil transportation.
Daily production of 6,700 bbls per day has been temporarily reduced to 2,000 bbls per day, effective immediately, while this issue is being resolved.
Management has commenced negotiations with a shortlist of rail car operators to secure sufficient rail car availability going forward, through the signing of long-term rail car lease agreements. The initial results of these negotiations are expected shortly and management currently expects that production will resume at capacity during the next two weeks. If this is achieved then the impact on the company’s annual production is unlikely to be material.
However, if the current rail car shortage were to continue until the end of 2008, the management expects production to be restricted to the current full capacity of 6,700 bbls a day.
A further announcement will be made when more information becomes available.
Zhaikmunai’s management team will be holding a conference call for analysts and investors to discuss this development at 2pm BST on 16 July 2008. Dial in details for the conference call and the replay facility, which will be available for one week, are below.
Participants International Dial In: +44 (0) 1452 561 263
Conference ID 56381810
Replay Details:
International Dial In: +44 (0) 1452 55 00 00
Replay Access Number: 56381810 #
For further information please visit our website www.zhaikmunai.com or contact:
Zhaikmunai info@zhaikmunai.com
Brunswick
Michael Harrison +44 20 7404 5959
Carole Cable
About Zhaikmunai
Zhaikmunai is an independent oil and gas enterprise engaged in the exploration, production and sale of crude oil and gas condensate in northwestern Kazakhstan. The Company’s licence area is the Chinarevskoye field, which is located in the northern part of the oil-rich Pre-Caspian Basin. Zhaikmunai entered into a Production Sharing Contract with the Republic of Kazakhstan in 1997. Based on a reserve report prepared by Ryder Scott Company L.P., Zhaikmunai’s estimated gross proven plus probable hydrocarbon reserves as at 1 July 2007 were 397 million boe. Zhaikmunai’s GDRs are listed on the London Stock Exchange under the ticker symbol ‘ZKM’.
Forward looking statements
In the interests of providing Company shareholders and potential investors with information regarding the Company, including the Company’s assessment of its and its subsidiaries’ future plans and operations, certain statements included in this press release may constitute forward-looking information or forward looking statements (collectively, “forward-looking statements”). All statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate”, “believe”, “expect”, “estimate” and similar expressions are generally intended to identify forward-looking statements. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. These forward-looking statements made as of the date hereof disclaim any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise.
