ABIndex news

14 March, 2007

Experts counsil include “Kyrgyzneftegaz” (Kyrgyz oil gas) OJSC shares in the list of United stock ABIndex.

ABIndex   Experts counsil include “Kyrgyzneftegaz” (Kyrgyz oil gas) OJSC shares in the list of United stock ABIndex.

Kyrgyzneftegaz realizes oil and gas extraction in the Kyrgyz Republic. The company extract almost 70 thousand ton of oil yearly, the Republic’s demand in 1.5 mln. ton and 25-30 mln. sq. m of gas and it is only 2 % from the consumption volume. The whole companys production is supply to consumer inside the Kyrgyz Republic. Many large industrial consumers have important debts value to “Kyrgyzneftegaz”.

 “Kyrgyzneftegaz” OJSC is a owner of 50 % of shares of Dzalal-Abad oil refinery plant “KyrghyzPetroleumCompany”, which nowadays works only on 30% of its capacity.

General oil found of the company acting 472 well, 325 from it – are acting, 143- not acting. Acting gas chinks nowadays are 11, not acting – 27. Besides, according to specialist appraisal Kyrghyzstan has the deposit of coalhydrogen raw material, which forecust- appraisal stock on 01.01.2006 excess 300 mln. ton. On the territory of South Region are open and exploit 10 oil and gas deposit with the geological deposit of the oil of 90 mln. ton.

The residual extraction of industrial deposit of the oil - 11,6 mln. ton, natural gas - 4,9 bln. Sq.m. all deposits are on late exploitation stage.

The main shareholder of the company is the Government of Kyrgyz Republic with the 85% in share holding, the rest 15% are distributed among minoritary shareholders. Kyrgyzneftgaz included to the privatization programm. Some years ago the question there was verbal understanding about transmission of state share holding to the management of Russian “Gasprom”, however, this initiative wasn’t realized. After “Gasprom Asia” affiliated with Russian “Gasprom” purchased a bussines oriented on service net “NK Aliance” (Aliance Oil Company) in Kyrghyzstan some analytics were talking about next operatin on buying by Russian monopolist also 85% of shares of Kyrgyzneftgaz, however analitics supposed that “Gasprom” going to create a joint venture with Kyrgyzneftgaz and it shold have undoubtedly positive reflection on oil-gas branch of the Kyrgyz Republic.

Proceeds from company’s production realization increased from 2003 till 2005 on 43% and reached 484 mln som. Annual benefit of Kyrgyzneftegaz during last years increased to 45 mln som. In 2006 company declared 0,47 som per one share ($ 0,012) for dividend payment. And the equity basis to the beginning of 2006 consist 1,2 billion som ($ 31.746 million).

The shares value in the last year was 2-6 soms per one share. Now we can see that average price is about 13-14 som per one share. In this case company’s capitalization may come to 338,85 million som ($ 8.9 million).

The most problem with oil and gas extraction arising because of extraction’s hard process, what mostly needs special expensive equipment and new technology. In that way, only in case of investing of sizeable means Kyrgyzneftegaz may appreciably enlarge oil and gas extraction. There are two kinds of investment – Kyrgyzneftegaz should be privatized by attraction a serious strategical investor or creating a joint venture mostly on the basis of assets of Kyrgyzneftegas and foreign or local investors finance and technology resourses.

This information was provided by BNC Finance Investment company, in the context of ABIndex project, directed to disclosed the events, taking place on the securities market of the Kyrgyz Republic.

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