OREANDA-NEWS. September 19, 2011. JSC KazMunaiGas Exploration Production (“the Company” or “KMG EP“) announces that the Board of Directors of KMG EP has approved a share buyback programme. Under the programme the Company has an option to purchase its common shares (KASE:RDGZ KZ) listed on the Kazakhstan Stock Exchange (“KASE”) and GDRs (LSE:KMG LI) listed on the London Stock Exchange (“LSE”) up to the aggregate amount of USD 300 million. The programme will start in the near future and will take up to the end of 2012 to execute. Beginning of the buyback programme will be announced separately. The shares and GDRs will be acquired at the prevailing market price as at the time of the purchase.

The Board of Directors believes that the current market prices of its shares and GDRs do not reflect the true underlying value of the business and its considerable potential based on the current resources, opportunities for business development and stable financial position. That is why the Board has decided to buy back a portion of KMG EP common shares and GDRs. The decision demonstrates the confidence of Management in the value and prospects of the Company. Furthermore, this step is an effective use of free cash resources to the benefit of all shareholders.

Together with realization of the common share and GDR buyback programme KMG EP will continue the earlier approved preferred shares buyback programme, which is in place until the end of 2011. It is expected that the National Company KazMunayGas will not be selling its KMG EP shares.

The Company has substantial financial resources while its operating activity generates additional cash flow. It allows KMG EP to continue to execute on its ongoing growth strategy through exploration, acquisition of new assets and investments in oil and gas assets.