Q3 2013: Record Financial and Operational Results

AMSTERDAM, THE NETHERLANDS--(Marketwired - Oct 31, 2013) -

Q3 2013: Record Financial and Operational Results

Amsterdam, 31 October 2013 - Zhaikmunai L.P. (LSE: ZKM) ("Zhaikmunai"),
the oil and gas exploration and production enterprise with assets in
north-western Kazakhstan, today announces record financial results and
provides an operational update in respect of its third quarter (Q3)
results ended 30th September 2013.


RECORD 9M 2013 and Q3 2013 FINANCIAL RESULTS

* Record 9M 2013 total average daily production of 45,414 boepd, an
  increase of 23.2% compared to the 9M 2012 average of 36,859 boepd, Q3
  2013 total average daily production was 43,522 boepd, an increase of
  9.0% compared to Q3 2012 average (39,943 boepd);

* Record 9M 2013 total revenue of US$ 657.2 million, up 25.6% compared
  to 9M 2012 (US$ 523.2 million). Q3 2013 total revenue of US$ 214.7 up
  7.5% compared to Q3 2012 total revenue (US$ 199.8 million);

* Record 9M 2013 EBITDA expected to be above US$ 390 million (9M 2012:
  US$ 343.0 million);

* Total 9M cash position of US$ 223.8 million (including short-term
  deposits) up 18.1% compared to the end of 9M 2012 (US$ 189.5 million);

* Total net debt increased slightly to approximately US$ 428.7 million;

* Net debt to LTM EBITDA ratio remains below 1x at 0.8x.


STRONG OPERATING PERFORMANCE

Record Production Drives Revenue and EBITDA Higher

* Total average daily production for Q3 2013 was 43,522 boepd, an
  increase of approximately 9.0% compared to Q3 2012 (39,943 boepd);

* Scheduled shutdown of Gas Treatment Facility (GTF) was performed
  within 9 days in September 2013;


The product split for Q3 2013 was as follows:

PRODUCTS                      Q3 2013 Average        Q3 2013 Product
                              Production             Mix %

Crude Oil & Stabilised        18,393 boepd           42.3%
Condensate

LPG (Liquid Petroleum Gas)    4,178 boepd            9.6%

Dry Gas                       20,950 boepd           48.1%

TOTAL                         43,522 boepd           100%


Kai-Uwe Kessel, Chief Executive Officer of Zhaikmunai,
commented:"Zhaikmunai is proud to have delivered yet another record quarter
of
financial results as well as a faster than anticipated maintenance
turnaround of its Gas Treatment Facility. In addition, we are pleased
to have extended our exploration license for the requested period.
Zhaikmunai is in a great position to finish 2013 strongly and is
particularly well placed both financially and operationally as it
enters its next investment phase."

Drilling activities

* 5 drilling rigs are being operated on a full-time basis on the
  Chinarevskoye field;

* Zhaikmunai is on target to achieve its planned drilling programme
  for 2013. The field currently has 15 oil wells and 13 gas condensate
  wells in operation.

Other News

Expansion of Processing Capacity with Additional Train to Gas Treatment
Facility

In line with previous communications, civil and construction works
continue on the third train of the Gas Treatment Facility (GTF). The
company remains on track to complete the project by the end of 2016.

Signing of 10th Supplementary Agreement to the PSA

On 28 October 2013, the Ministry of Oil & Gas of the Republic of
Kazakhstan signed the 10th Supplementary Agreement to Zhaikmunai's PSA
(Production Sharing Agreement) in relation to the Chinarevskoye field.
Among other items, this agreement contains the extension of
Zhaikmunai's exploration period, other than for the Tournaisian
horizons, to 26 May 2014. This provides sufficient time for the company
to carry out its planned exploration programme before submitting the
results to the state.

RELEASE OF ZHAIKMUNAI'S Q1 2013 RESULTS

The financial information in this operational update is being issued in
advance of the release of Zhaikmunai's accounts for its first nine
months ended 30th September 2013, which will take place before November
29th 2013, as a consequence of certain regulatory requirements in the
Republic of Kazakhstan. The financial information in this update
remains subject to further review.

Further information

For further information please visit  www.zhaikmunai.com 

Further enquiries

Zhaikmunai LP - Investor Relations
Bruno G. Meere
Kirsty Hamilton-Smith
 investor_relations@zhaikmunai.com   + 31 20 737 2288

Deutsche Bank                      + 44 (0)207 545 8000
Ben Lawrence
JM Hafner
Rob Abbott

VTB Capital plc                    + 44 (0)203 334 8000
Alexander Metherell
Marcus Brown
Giles Coffey

Pelham Bell Pottinger              + 44 (0) 207 861 3232
Philip Dennis
Elena Dobson

About Zhaikmunai
Zhaikmunai is an independent oil and gas enterprise currently engaging
in the production, development and exploration of oil and gas in
north-western Kazakhstan. Its Global Depositary Receipts (GDRs) are
listed on the London Stock Exchange (Ticker symbol: ZKM). Zhaikmunai's
principal producing asset is the Chinarevskoye field, in which it holds
a 100% interest and is the operator, through its wholly-owned
subsidiary Zhaikmunai LLP. In addition, Zhaikmunai holds a 100%
interest in and is the operator of the Rostoshinskoye, Darinskoye and
Yuzhno-Gremyachenskoye oil and gas fields. Located in the pre-Caspian
basin to the north-west of Uralsk, these exploration and development
fields are approximately 60 and 120 kilometres respectively from the
Chinarevskoye field.

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 the Partnership 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.

Deutsche Bank
Deutsche Bank AG is authorised under German Banking Law (competent
authority: BaFin - Federal Financial Supervisory Authority) and
authorised and subject to limited regulation by the Financial Conduct
Authority (the "FCA"). Details about the extent of Deutsche Bank AG's
authorisation and regulation by the FCA are available on request.

VTB Capital
VTB Capital Plc is authorised by the Prudential Regulation Authority
and regulated by the Financial Conduct Authority and the Prudential
Regulation Authority.

                    This information is provided by RNS
          The company news service from the London Stock Exchange

END