19/09/2011
[19 September 2011, Hong Kong] MIE Holdings Corporation (“MIE” or the “Company”, together with the subsidiaries, the “Group”; Stock Code: 1555), the largest independent upstream oil company operating onshore in the PRC as measured by gross production under production sharing contracts, refers to its announcement dated 15 February, 2011 (“Announcement”) in relation to the conditional acquisition (“Acquisition”) of all the issued and outstanding participation interests of Emir-Oil, LLC (“Emir”) from BMB Munai, Inc. (“Seller”) and the loans made by the Seller to Emir for an aggregate consideration of US$170 million (subject to adjustment) and is pleased to announce that the Acquisition has been completed for a reduced aggregate consideration of US$159,601,000 (subject to final adjustment 90 days after closing) on 19 September 2011.
Commenting on the completion of the acquisition, Zhang Ruilin, Chairman, Executive Director and CEO of MIE said, “MIE is already the largest independent upstream oil company operating onshore in the PRC as measured by gross production under production sharing contracts and the acquisition of Emir will be a major step for the Group to become a medium-sized international oil and gas company. Emir’s oil fields are located in the oil rich basin of Western Kazakhstan, which will form a strong base for the Group’s expansion strategy, particularly within and around the Central Asia region. In addition, we are very happy that the Ministry of Oil and Gas in Kazakhstan has granted Emir 25-year production contracts for Kariman, Aksaz and Dolinnoe, which account for 99.9% of Emir’s proved reserves (as stated in the latest Chapman reserve report), and 100% of Emir’s production/revenues.”
During the last two quarters ended 30 June 2011, daily production averaged 3,422 barrels of oil equivalents per day, whereas for the two previous quarters ended 31 December 2010, daily production averaged 2,917 barrels of oil equivalents per day, an increase of over 17%. Emir was able to increase production rates, despite no new wells being drilled during these periods, by performing side-track drilling and working over existing wells.
In order to ensure a smooth transition upon the closing of the Acquisition, the Group seconded members of its senior management to Emir shortly after MIE issued the Announcement on 14 February 2011. The Group’s operational and technical teams, together with other experts and technical professionals from China, have spent the past few months working with Emir’s team, studying Emir’s oil fields and preparing to take over operations. The Group has developed a comprehensive strategy to reduce costs and improve Emir’s efficiency and plans to utilize its existing relationships with PRC based oil drilling and servicing companies operating in Kazakhstan to find the best service providers to help the Group execute its strategic vision for Emir. Under the plan, drilling of new vertical wells will commence very soon.
About MIE Holdings Corporation
MIE is the largest independent upstream oil company operating onshore in the PRC as measured by gross production under production sharing contracts. The Group operates the Daan, Moliqing and Miao 3 oilfields in the Songliao Basin, PRC’s most prolific oil-producing basin, under three separate production sharing contracts with PetroChina, the largest oil company in China. 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 was successfully listed on the main board on HKEx on December 14, 2010 with stock code 1555.
Issued by Porda Havas International Finance Communication Group for and on behalf of MIE Holdings Corporation. For further information, please contact:
Porda Havas International Finance Communication Group
Ms. Peony Sze +852 3150 6766 peony.sze@pordahavas.com
Mr. Henry Ho +852 3150 6712 henry.ho@pordahavas.com
Ms. Mona Chow +852 3150 6765 mona.chow@pordahavas.com
Fax：+852 3150 6728