On July 1, Capital State learned that the Kazakh Petroleum Group submitted a list on the main board of the Hong Kong Stock Exchange, with Western Securities International as the exclusive sponsor.
According to the prospectus, the company is an oil exploration and production company based in Kazakhstan, and most of its oil fields are in the early stages of development. The company has exclusive rights to explore and produce hydrocarbons in 14 oilfields in area An and E of the Atlau area in the Caspian Basin, Kazakhstan.
As of April 30, 2022, the company has about 530454 thousand barrels of total proven reserves. According to Frost Sullivan, the company's proven reserves in the Caspian Basin in 2021 rank fourth, accounting for about 2.8% of the total proven reserves in the Caspian Basin. In terms of confirmed reserves, the company is one of the top five oil companies in Kazakhstan, accounting for about 1.8% of Kazakhstan's total proven reserves in 2021.
As the company carried out oil exploration and production activities on September 25, 2020, the company had no revenue for the year ended 31 December 2019. For the years ended December 31, 2020 and 2021, all of the company's revenue came from crude oil sales, and most of the company's revenue came from export sales, accounting for about 57.7% and 90.7% of the total revenue for the years ended December 31, 2020 and 2021, respectively.
The company's revenue increased by approximately 1161.5% from approximately $2.552 million for the year ended December 31, 2020 to approximately $32.798 million for the year ended December 31, 2021. The increase in revenue was mainly due to the combined effect of (I) the Company started selling crude oil only after the commencement of oil exploration and production activities on 25 September 2020, while the Company's crude oil production level and sales volume increased for the year ended 31 December 2021; and (ii) the proportion of earnings from export sales for the year ended 31 December 2021 increased, and the average selling price of crude oil was higher than that of domestic sales throughout the track record period.
For the years ended December 31, 2019, 2020 and 2021, the company's annual losses were $706000, $3.065 million and $8.303 million.
The company plans to raise funds for the development of seven oilfields to the full development stage between 2023 and 2025; to build new pipelines to directly or indirectly connect the oilfields to Makat transfer stations; and to upgrade Makat transfer stations and Makat pumping stations in EastMakat oilfields.