22/08/2012
Financial Highlights （Unaudited for the Six-Month Period Ended）
[22 August 2012，Hong Kong] MIE Holdings Corporation (“MIE” or the “Company”, together with the subsidiaries, the “Group”; Stock Code: 1555), an independent upstream oil company engaged in the exploration, development and production of crude oil and natural gas in China, Kazakhstan and USA, is pleased to announce its 2012 interim results (“ the period under review”). During the period under review, the Company’s total turnover increased 37% to RMB1.756 billion due to an increase in the crude oil price and the Company’s sales volume. Meanwhile, sales volume for the Company’s crude oil increased significantly by 33% to 2.42 million barrels.
Mr. Zhang Ruilin, Chairman of the Company said: “MIE recorded an outstanding performance partly driven by rising crude oil price. However, it is more important that the Company grasped market opportunities and continued to expand our production capacity. Currently, our daily net crude oil production increased 33% to an average of 13,369 barrels per day.”
During the period under review, based on each region, the Company achieved a revenue of RMB1, 539.7 million in China Oil fields, the sales volume was 2.04 million barrels, an increase of 0.22 million barrels over the same period last year. For Kazakhstan, Emir-Oil achieved revenue of RMB 210.6 million and crude oil sales of 380,288 barrels. Emir-Oil commenced sales of domestic oil to Petrochina International Kazakhstan LLP for 7,368 barrels and 12,061 barrels of oil for May and June 2012 at a price US$55.02 and US$53.17 per barrel respectively. On the other hand, Emir-Oil realized revenue from gas sales of RMB5.7 million with a realized gas sales volume of 795,424 Mscf.
In the first half of 2012, drilling continued at a brisk pace and the Company drilled 251 gross development wells without any dry holes. Three exploration wells were also drilled without any dry holes. During the period under review, the Company also drilled its first horizontal well.
To expand the Group’s existing scale of operation, the Company acquired 51% interest in Sino Gas & Energy Limited (“SGE”).The acquisition will provide a clear way for the Company to immediately begin participation in China unconventional gas development, aligning the Company for more effective future participation in the rapidly expanding exploration and development of Chinese unconventional gas resources.
For the full year 2012, the Company has revised the investment budget from US$303 million to US$ 368 million for its China oil properties, the Kazakhstan oil and gas properties, and the USA shale oil properties. During the period under review, a total of US$154 million has been invested of which US$ 152 million was spent on the existing projects in China, Kazakhstan and USA; and US$2 million was for an acquisition of shale oil project in the USA.
The Company plans to drill 392 vertical wells and 12 horizontal wells, plus participate in 2 non-operated horizontal development wells. Included in these totals are 21 exploration wells, one of which is a horizontal well. Seventeen exploration wells are on the SGE northwest China properties. In the second half of the year, 141 of the vertical wells remain to be drilled, and 10 of the operated horizontal wells.
The capabilities of the Group to discover new reserves and to develop new and existing reservoirs expanded significantly with our technical, operational and economic success in exploration and in horizontal drilling and completion. New techniques combined with historical methods will allow continued development of the base oil assets in China, production is increasing significantly in the second half of 2012 on our Kazakhstan properties and we have identified more locations to drill to optimize development on our USA Niobrara assets. With all the above, the Group is positioned to continue its healthy growth into the future.
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About MIE Holdings Corporation
MIE is an independent oil and gas company engaged in the exploration and production of crude oil and natural gas in China, Kazakhstan and USA. The Group operates the Daan, Moliqing and Miao 3 oilfields in the Songliao Basin under three separate production sharing contracts with PetroChina, the largest oil company in China and holds a 51% stake in a joint venture that operates Linxing and Sanjiaobei gas assets in the Ordos Basin under two separate production sharing contracts. The Group also holds an exploration contract and three production contracts that allow the Group to conduct exploration and production activities in the Mangistau province in the southwestern region of Kazakhstan. In addition, the Group pursues other development and production opportunities in China, and exploration, development and production opportunities internationally, both independently and in partnership with other major and independent oil companies.
MIE is listed on the main board of Hong Kong Stock Exchange with stock code 1555.
Issued by Trinity Communications Group Limited for and on behalf of MIE Holdings Corporation. For further information, please contact:
Trinity Communications Group Limited
Mr. Terence Wong terence.wong@tri-hk.com
Tel: 9350 2493
Mr. Henry Ho henry.ho@tri-hk.com
Tel: 9232 6197