SOURCE: Zhaikmunai LP

May 23, 2012 02:01 ET

Zhaikmunia LP Announces 1st Quarter Results

ISLE OF MAN, UNITED KINGDOM--(Marketwire - May 23, 2012) -


Zhaikmunai L.P.

(the "Partnership")

ZHAIKMUNAI - Q1 2012 RESULTS


Zhaikmunai LP (LSE: ZKM), the oil and gas exploration and production
enterprise with assets in north-western Kazakhstan today communicates
its financial results for the period from 1 January to 31 March 2012 in
addition to providing an update on its operations.


HIGHLIGHTS FROM A RECORD FIRST QUARTER

* Production:

  o More than five-fold YoY increase to 3,053,210 boe total

  o Average Q1 2012 daily production of 33,552 boepd

  o Average April 2012 daily production of 37,237 boepd



* Financial:

  o Close to four-fold YoY increase in EBITDA to US$110.9 million

  o Over four-fold YoY increase in Net Income to US$ 48.4 million

  o Over three-fold YoY increase in Revenue to US$163.4 million

  o Further strengthening of the Balance Sheet to US$144.3 million in
    cash


* Targets for Q2 and 2012:

  o Connection of one further gas condensate well (Well #218) to
    continue bringing GTF to full design capacity in Q2

  o Connection of two crude oil wells (Wells #116 and #67) to bring
    crude oil production above 7,500 boepd in Q2

  o Drilling of 11 new wells in the course of 2012



Q1 2012: STRONGEST FINANCIAL RESULTS IN ZHAIKMUNAI'S HISTORY



All figures in US$ million (unless otherwise stated)

           Q1 2012 Q1 2011 Change (YoY)

Revenue    163.4   52.4    +211.8%

EBITDA     110.9   28.7    +286.9%

Net Income 48.4    11.1    +336.0%

Net Debt   305.7   315.6   -3.2%


             Q1 2012 FY2011 Change

Cash Balance 144.3   128.5  + 12.3%


Revenue, EBITDA and Net Income

Revenue from sales of crude oil, stabilised condensate, LPG and dry gas
stood at US$163.4 million. EBITDA stood at US$110.9 million. The EBITDA
margin increased to 67.9% from 54.7% during the same period, reflecting
the fixed nature of a significant portion of Zhaikmunai's costs. Net
income for the period increased over four-fold to US$48.4 million.

Cost of Sales

Cost of sales increased by US$30.2 million, or 212.5%, to US$44.4
million compared to US$14.2 million for the same period in 2011. This
increase was due to a rise in depreciation and maintenance expenses
linked to GTF operations, which did not begin until Q2 2011.
Depreciation expenses rose 489.0% to US$21.9 million and maintenance
expenses rose 195.8% to US$8.6 million.

Cash

Zhaikmunai ended the first quarter of 2012 with US$144.3 million in
cash and cash equivalents, of which US$3.2 million was restricted cash.
This represents a US$15.8 million increase, or 12.3%, compared to the
end of the 2011 financial year.

Q1 2012 OPERATIONAL HIGHLIGHTS

All figures in boe unless otherwise stated

                                   Q1 2012   Q1 2011 Change (YoY)

Total Production (All products)    3,053,210 604,746 404.9%

Average Production (All products)* 33,552    6,719   399.3%


Total Production Increase

Zhaikmunai increased its total production over five times between the
first quarter of 2011 and the first quarter of 2012. Total production
increased to 3,053,210 boe from 604,746 boe or 404.9%, with an average
daily production of 33,552 boepd from 6,719, or 399.3%. Total
production has since further increased to an average of 37,237 boepd in
April 2012.

Production Ramp-Up

The average production level is expected to further increase with the
imminent coupling of gas condensate Well #218, the planned coupling of
two further crude oil wells (Well #116 and Well #67) as well as through
the pursuit of its yield optimisation programme in the course of 2012.

Drilling Programme

As of 31 March 2012, 12 wells were producing oil from the Tournaisian
reservoir and 8 wells were producing gas condensate from the
Ardatovski, Biski/Afoninski and Southern Tournaisian reservoirs.
Zhaikmunai's drilling plans for 2012 include drilling of a total of 11
new wells of which two new exploration / appraisal wells and 9
production wells.

Kai-Uwe Kessel, CEO of Zhaikmunai, commented:"The excellent Q1 2012 results
confirm Zhaikmunai's announced scale
transformation in 2011. A more than five-fold increase in total
production to 3,053,210 boe has driven a close to four-fold increase in
EBITDA to US$110.9 million and a more than three-fold increase in
revenue to US$163.4 million in the current high oil price environment.
Zhaikmunai has now fully embarked on its new trajectory thanks to its
fully operating Gas Treatment Facility. Total production is still
expected to increase with the GTF reaching its design capacity of 1,2
mmcm of raw gas with the tie-in of an extra gas condensate well, with
the Oil Treatment Facility reaching its full capacity with the tie-in
of two more crude oil wells, and with the further optimisation of the
recovery of liquids in the gas-condensate stream."

For further information please visit  www.zhaikmunai.com 

Here you can download the pdf file from this press release.

Please follow the link below to view the associated PDF;

 http://www.rns-pdf.londonstockexchange.com/rns/9157D_1-2012-5-23.pdf 


CONFERENCE CALL

Zhaikmunai's management team will be available for a Q&A session for
analysts and investors on Wednesday, 23 May at 13:00 UK time (GMT).

If you would like to participate in this call, please register by email
using the following email address:  investor_relations@zhaikmunai.com .
Please provide your ID details (name, title, company, email address and
telephone number) in order to receive dial-in details.


Further enquiries

Zhaikmunai LP

Bruno Meere, Investor Relations Officer
 investor_relations@zhaikmunai.com             +44 (0) 1624 68 21 79

Pelham Bell Pottinger

Philip Dennis
Elena Dobson                                 +44 (0) 20 7861 3232


About Zhaikmunai

Zhaikmunai is an independent oil and gas enterprise currently engaging
in the exploration and development and production of oil and gas. It is
listed on the London Stock Exchange (Ticker symbol: ZKM). Its principal
producing asset is the Chinarevskoye Field located in north-western
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.


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.

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

END

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