Zhaikmunai L.P., reports a placing to raise US$300 million through the sale of new common units (the "Placing"), a major part of which will be in the form of global depositary receipts ("GDRs"). The proceeds of the Placing will supplement the Group’s existing credit facilities and fund in part the capital expenditure programme for the Chinarevskoye field, in particular, the completion of the Gas Treatment Unit.

In connection with the Placing, the Partnership has agreed to issue 45,000,000 new Common Units in the form of GDRs at a price of US$4.00 per GDR on a non-preemptive basis to placees procured by ING Bank, Mirabaud Securities, Renaissance Capital and FirstEnergy Capital Corp. pursuant to an underwritten placing agreement dated 29th July 2009. ING Bank, Mirabaud Securities and Renaissance Capital are acting as Joint Bookrunners (the “Joint Bookrunners”) with FirstEnergy Capital Corp. acting as Co-Manager responsible for Canada (together with the Joint Bookrunners, the “Managers”) for the Placing. In addition, Renaissance Capital has arranged for a private placement by an investor into Claremont Holdings Limited, the existing 90% owner of Zhaikmunai. As a result, Claremont Holdings Limited has agreed to subscribe for an additional 30,000,000 Common Units in the form of GDRs, at a price of US$4.00 per GDR, which will result in Zhaikmunai receiving total gross proceeds of US$300 million.

Zhaikmunai will apply for admission of the GDRs to the Official List of the UK Financial Services Authority and admission to trading of the GDRs on the main market of the London Stock Exchange (“Admission”). It is expected that Admission will take place and that trading will commence in mid-August 2009 following satisfaction of certain conditions precedent to the Placing.

The Placing is conditional upon, inter alia, Admission becoming effective, upon the passing of the resolutions (without amendment) at the special general meeting of limited partners scheduled for 19th August 2009 and receipt of all necessary regulatory approvals, including the relevant confirmations from the Kazakh authorities that they do not intend to exercise their priority right to purchase the GDRs in accordance with Article 71 of the Kazakh Subsurface and Subsurface Use Law. The Placing is also conditional on the waiver of existing events of default under Zhaikmunai’s US$550 million revolving credit facility (the “Facility”) and the deferral of certain payments due under the construction contract for the Gas Treatment Unit.

Tags: Zhaikmunai L.P.