EP KMG to buy back preferred shares

/KASE, February 26, 10/ - KazMunayGas Exploration and Production (Astana), common shares of which are listing Kazakhstan Stock Exchange (KASE), provided KASE with a press release dated February 26, 2010: Quotation begins KazMunaiGas Exploration Production (the "Company") announces that a preferred shares buyback program has been approved by the Company's Board of Directors. Following the listing on the Kazakhstan Stock Exchange ("KASE"), the Company intends to buy back up to 4,136,107 shares (i.e. up to 100 per cent of the total number of the issued preferred shares of the Company) for up to 10 per cent of the Company's equity capital as at the date of the Board decision, minus the costs of the Company's ordinary share and global depository receipt buyback program. The Company will carry out the preferred shares buyback program on KASE. It is anticipated that the share buyback will be carried out through a sequence of separate 30-day specialized trades in accordance with KASE requirements. It is expected that the buyback program will be completed on or before 31 December 2011. A further announcement will be made following the admission of the preferred shares of the Company to circulation on KASE. The Company will also make announcements before each specialized trade, as well as announcements after each specialized trade informing of the terms and results of such trade. The listing and the buyback program is intended to allow shareholders greater transparency and liquidity. The majority of preferred shares are currently distributed among more than 30 000 individual shareholders, including present and former employees of KMG EP and their families. NOTES TO EDITORS: KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2009 was 11.5mmt (an average of 232kbopd) of crude oil, including the Company's share in Kazgermunai and CCEL. The total volume of proved and probable reserves, as at the end of 2008, was 241mmt (1.8bn bbl), excluding the relevant proportion of reserves at Kazgermunai and CCEL; including the share of reserves from Kazgermunai and CCEL the 2P reserves are over 2.1 bn barrels. The Company's shares are listed on Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. In July 2009 International rating agency Standard & Poor's (S&P) confirmed KMG EP's "BB+" corporate credit rating and assigned the Company "GAMMA-6" rate. Контактная информация: EP KMG, Public Relations (+7 7172 97 7600) Daulet Zhumadil e-mail: pr@kmgep.kz EP KMG, Institutional Investors (+7 7172 97 5433) Asel Kaliyeva e-mail: ir@kmgep.kz Pelham PR (+44207 337 15 17) Elena Dobson e-mail: EDobson@pelhambellpottinger.co.uk Ends [2010-02-26]