com:20090915:RnsO0558Z
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RNS Number : 0558Z  
  
Zhaikmunai LP  
  
15 September 2009  
  
 NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN OR into 
AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES  
  
ZHAIKMUNAI L.P.  
  
Zhaikmunai completes US$300 million Placing of GDRs  
  
London, 15 September 2009: Zhaikmunai L.P. (LSE:ZKM) ("Zhaikmunai"), the oil and 
gas exploration, development and production business based in northwestern 
Kazakhstan, today announces the successful completion of a US$300 million 
Placing through the sale of 75,000,000 new common units (the "Placing") in the 
form of global depositary receipts ("GDRs"). Following admission of the GDRs to 
the Official List of the UK Financial Services Authority, trading of the GDRs on 
the main market of the London Stock Exchange commences today.    
  
The completion of the Placing is an important step forward in Zhaikmunai's plans 
for development of the Chinarevskoye field in Kazakhstan and follows the receipt 
of all necessary regulatory approvals from the Kazakh authorities. In 
conjunction with the Placing Zhaikmunai's existing loan facility has been 
amended and all outstanding defaults under the facility have been  cured or 
waived as provided in an amendment agreement signed with BNP Paribas.   
  
Commenting on the successful capital raising, Frank Monstrey, Chairman of 
Zhaikmunai, said:  
  
"We are very pleased with the success of the Placing and the level of demand for 
the new units. The Placing helps put Zhaikmunai's financing on a firm and secure 
footing and was integral to the company's expansion plans. The support for the 
Placing also reflects investor confidence in Zhaikmunai's ability to deliver 
growth despite the current difficult economic environment.   
  
Zhaikmunai is an ambitious business with high potential, as demonstrated by the 
very substantial reserves contained in the Chinarevskoye field. This capital 
injection will allow us to tap that potential and continue to implement the 
company's growth strategy."  
  
Between September 2004 and January, 2009, Zhaikmunai invested approximately 
US$550 million in drilling and field infrastructure while crude oil production 
has increased from 205,784 bbl in the third quarter of 2004 to 683,883 bbl in 
the first quarter of 2009 and 1,326,980 bbls in the first half of the year. 
Zhaikmunai's estimated gross proven plus probable hydrocarbon reserves have 
increased from 215 million boe in 2004 to 529 million boe in 2008.   
  
Zhaikmunai's operational facilities consist of 32 existing wells including two 
exploration wells under drilling and an oil processing facility capable of 
processing 400,000 tonnes per annum of crude oil. Zhaikmunai began commercial 
production on 1 January 2007 and the completion of the Gas Treatment Facility 
currently under construction will be the next step in company's growth.    
  
The company's total capital expenditure to the end of 2018 is estimated to be 
approximately US$1.8 billion, including approximately US$971 million on new 
drilling and well workovers, US$569 million on the Gas Treatment Facility and 
US$15 million on the gas pipeline. The proceeds of the Placing will supplement 
the Group's existing credit facilities and fund in part the capital expenditure 
programme for the Chinarevskoye field.  
  
Commenting on the announcement, Kai-Uwe Kessel, Chief Executive, said:  
  
"Zhaikmunai has consistently delivered on all of its commitments under the 
Production Sharing Agreement with the Kazakh government and has continuously 
invested in the infrastructure of the Chinarevskoye field over the past few 
years. Those investments have now started to bear fruit but oil and gas 
exploration and production is a capital intensive business and the additional 
investments made possible by the Placing will be necessary to further exploit 
the potential of the area. The Placing not only demonstrates investor support, 
but will also enable us to continue to develop our business. We are pleased to 
see the company in a stronger position to deliver its stated growth strategy."  
  
The Placing was managed by ING, Mirabaud Securities, Renaissance Capital and 
First Energy.  
  
Further enquiries    
  
Zhaikmunai     info@zhaikmunai.com   
  
Brunswick      +44 (0)20 7404 5959            
  
Michael Harrison  
  
Natalia Erikssen  
  
About Zhaikmunai    
  
Zhaikmunai L.P. is a limited partnership engaged in oil and gas exploration, 
development and production that is quoted on the London Stock Exchange PLC 
(Ticker symbol: ZKM). Its principal producing asset is the Chinarevskoye Field 
located in northwestern Kazakhstan.    
  
Zhaikmunai L.L.P., a wholly-owned subsidiary of Zhaikmunai L.P., holds a 100% 
interest in and is the operator of the Production Sharing Agreement for the 
Chinarevskoye Field.    
  
www.zhaikmunai.com    
  
Forward-Looking Statements:    
  
Some of the statements in this document are forward-looking. Forward-looking 
statements include statements regarding the intent, belief and current 
expectations of Zhaikmunai or its officers with respect to various matters. When 
used in this document, the words "expects," "believes," "anticipates," "plans," 
"may," "will," "should" and similar expressions, and the negatives thereof, are 
intended to identify forward-looking statements. Such statements are not 
promises or guarantees, and are subject to risks and uncertainties that could 
cause actual outcomes to differ materially from those suggested by any such 
statements.  
  
This announcement is not an offer of securities for sale in the United States. 
Securities may not be offered or sold in the United States absent registration 
or an exemption from registration under the U.S. Securities Act of 1933, as 
amended. Zhaikmunai has not registered and does not intend to register any 
portion of the Placing in the United States, and Zhaikmunai does not intend to 
make any public offering of securities in the United States.  
  
This announcement and any Placing mentioned herein if made subsequently are only 
addressed to and directed at persons in member states of the European Economic 
Area who are "qualified investors" within the meaning of Article 2(1)(e) of the 
Prospectus Directive (Directive 2003/71/EC) ("Qualified Investors"). In 
addition, this announcement is for distribution in the united kingdom only to 
(i) investment professionals falling within article 19(5) of the Financial 
Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or 
(ii) high net worth entities and other persons to whom it may lawfully be 
communicated, falling within article 49(2)(a) to (d) of the Order (all such 
persons together being referred to as "relevant persons"). This announcement is 
directed only at relevant persons and it is not intended to be distributed, 
directly or indirectly, to any other person in the United Kingdom. Any person 
who is not a relevant person should not act or rely on this announcement or any 
of its contents. Any investment or investment activity to which this 
communication relates is available only to relevant persons and will be engaged 
in only with relevant persons. Other persons should not act or rely on this 
document or any of its contents.  
  
Neither this announcement nor any copy of it may be taken or transmitted into 
the United States, Australia, Canada or Japan or to a resident, national or 
citizen of the United States, Australia, Canada or Japan. This announcement does 
not constitute or form part of any offer or invitation to sell, or any 
solicitation of any offer to purchase nor shall it (or any part of it) or the 
fact of its distribution, form the basis of, or be relied on in connection with, 
any contract therefor. The Placing and the distribution of this announcement and 
other information in connection with the Placing in certain jurisdictions may be 
restricted by law and persons into whose possession any document or other 
information referred to herein comes should inform themselves about and observe 
any such restriction. Any failure to comply with these restrictions may 
constitute a violation of the securities laws of any such jurisdiction.  
  
Common Units in Zhaikmunai have not been and will not be registered under the 
applicable securities laws of Australia, Canada or Japan and, subject to certain 
exceptions, may not be offered or sold within Australia, Canada or Japan or to, 
or for the account or benefit of, citizens or residents of Australia, Canada or 
Japan except under circumstances which will result in the full compliance with 
the applicable laws and regulations promulgated by the relevant regulatory 
authorities in effect at the relevant time.   
  
ING Bank NV, FirstEnergy Capital Corp., Mirabaud Securities LLP and Renaissance 
Securities (Cyprus) Limited are acting exclusively for Zhaikmunai and no one 
else in connection with the offering. They will not regard any other person 
(whether or not a recipient of this announcement) as their respective clients 
and will not be responsible to anyone other than Zhaikmunai for providing the 
protections afforded to their respective clients nor for giving advice in 
relation to the Placing and, the contents of this announcement or any 
transaction or arrangement referred to herein.  
  
 
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
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