PetroKazakhstan assesses feasibility of potential transactions
28/06/2005, Kazakhstan Today
PetroKazakhstan Inc. in response to various enquiries following a recent media report, has stated that it has "received approaches from a number of different parties regarding a potential corporate transaction involving either an acquisition or a merger with the company. The Company is currently engaged in a confirmatory and evaluation process seeking to assess the feasibility and the terms of potential transactions," PetroKazakhstan Inc. has advised KZ-today.
At the same time the release stresses that "there can be no assurance that this process will lead to a potential transaction which could be recommended to shareholders as being in their best interests."
Earlier it was reported that Financial Times has published information that PetroKazakhstan Inc., an oil producer based in Canada, but whose assets were in Central Asia, was considering offering itself for sale.
According to Financial Times, investment bankers at Goldman Sachs, working for the company, are expecting to receive bids for it later this week. A Chinese and an Indian oil company are considered to be the frontrunners in the auction.
During the last few months the cost of PetroKazakhstan shares fell 30% to $32.51 at the NYSE (as of 24 June), while in March their price had been $47.
PetroKazakhstan extracts oil at such fields as Aryskum, Kyzilkiya, Akshabulak, Kumkol, Kumkol South, Southern Kumkol, Kumkol North, Maibulak, Nuraly, Northern Nuraly, and Aksai.
As of January 1, 2005 PetroKazakhstan's proved and probable oil equivalent reserves were independently assessed at 549.8 million barrels.