28/03/2013
[28 March 2013, Hong Kong] MIE Holdings Corporation (“MIE” or “the Company”, together with the subsidiaries, the “Group”; Stock Code:1555), an independent upstream oil and gas company engaged in the exploration, development and production of crude oil and natural gas in China, Kazakhstan and USA, today announced the annual results for the year ended December 31, 2012, with key metrics summarized as follows:
Looking at the year of 2012, the Company achieved new records in key operation and financial metrics like net production, sales revenue and adjusted EBITDA. It is worth noting that the 2011 net profit included a one-time non-cash gain of approximately RMB460 million due to the difference between the purchase price and the fair market value of Emir-Oil at closing, to comply with the IFRS accounting standards. Another major factor that brought the net profit down was the increase in finance cost. The Company issued US$400 million 9.75% senior notes in May 2011 to fund the acquisition of Emir-Oil. After taking into consideration the adjustments for non-cash and non-recurring items used to calculate adjusted EBITDA, the net profit of the Company is approximately RMB708 million for 2012, down slightly by 3.0% from 2011. Considering that the performance of our key projects remains strong and in line with management’s expectation, the board of the Company recommended the payment of a final dividend of HK$0.059 per share.
With effective operation, the Company demonstrates stable growth on all projects in 2012. The total annual gross production of our core assets, the Northeast China projects (Daan, Moliqing and Miao 3) has surpassed a major milestone of one million tons of crude oil by reaching 1.01 million tons in 2012, making these assets “one million ton class oilfields”for the first time. These producing assets continue contributing strong production, sales revenue and cash flow to the Group. Emir-Oil expedited its exploration and development program and increased its production significantly following the takeover in 2011. The great potential in the Kazakhstan properties begin to show, making it an asset of great value to the Company.
The successful acquisition of Sino Gas & Energy Limited (“SGE”) in 2012 provides the Company with immediate access to the China unconventional gas market and with it, significant gas reserves and resources. We are confident that these reserves and resources will continue to upgrade significantly as we conduct more extensive geophysical work and drilling program. With the increasing gas demand in China, gas development and production will be our new growth opportunity and the unconventional gas assets held by SGE will become another asset of great importance to the Company.
The acquisition of Pan-China Resources closed at 2012 yearend further improved the Company’s reserve portfolio and added another producing asset that bring free cash flow to the Company.
The Company continues making significant progress on the exploitation of new technology and control of cost. The successful application of horizontal drilling technology on Northeast China and US projects enables us to improve the recovery factor, upgrade our large resources into reserves and add value to these projects. We lowered the drilling cost and lifting cost considerably in Kazakhstan following the takeover.
Looking back and looking ahead, the Company is pleased that it has transformed from a Northeast China tight-oil development company into a medium-scale international upstream oil and gas company by reserves and resources, thanks to the hard work of the management and staff members and continuing support from the shareholders and bondholders. Through a series of successful acquisitions, the Company now holds a strategic combination of quality oil and gas assets in China, Kazakhstan and USA, providing a solid base for future growth. The Company is confident that it will deliver attractive value to the shareholders with a proactive and consistent operation strategy.
About MIE Holdings Corporation
MIE is an independent oil and gas company engaged in the exploration and production of oil and gas in China, Kazakhstan and USA. The Group operates the Daan, Moliqing and Miao 3 oilfields in the Songliao Basins and Dagang – Kongnan block in the Huanghua Basin under four 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 with unconventional gas assets in the Ordos Basin under two separate production sharing contracts. The Group also holds an exploration contract and four 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.
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