2000-01-10 Kazak Corporate News
Article Index
Kazakhstan Weekly
Corporate News
Monday January 10, 2000
Oil & Gas
Hurricane Hydrocarbons Ltd. (“Hurricane”) confirmed today the signing, on December 27, 1999, of comprehensive agreements with a subsidiary of Russian LUKOIL Oil Company (“LUKOIL”) regarding the management and operation of the Kumkol-LUKOIL joint venture in Kazakhstan. Hurricane and LUKOIL are each 50% shareholders of CJSC Kumkol-LUKOIL, which owns and operates the Kumkol North oil field.
The agreements set a payment schedule for lease payments of approximately USD25.6 million, due by Kumkol-LUKOIL, for assets leased from Hurricane’s subsidiary, OJSC Hurricane Kumkol Munai (“HKM”). Approximately USD10 million of this amount was received by HKM during December 1999 and the balance is anticipated to be received before August 31, 2000.
Under the terms of the agreements, HKM will continue to market the production from the joint venture and to provide services to the joint venture on a fee for service basis. Cash flow generated within the joint venture in excess of requirements will be distributed to HKM and LUKOIL.
Other provisions of the agreements deal with the appointment of officers and directors of the joint venture company, the mechanism for the distribution of surplus funds to the shareholders, and a change of name of the joint venture company to “CJSC Turgai Petroleum”.
The signing of these agreements establishes a solid foundation for the further development of the Turgai Petroleum’s reserve base in the Kumkol North field which is currently producing approximately 28,000 barrels of oil per day.
Hurricane’s shares are traded on the Canadian Venture and Toronto Stock Exchanges under the symbol HHL.A and on the National Quotation Bureau (NQB) under the symbol HHLFQ. The company’s website can be accessed at www.hurricane-hhl.com.
The Toronto Stock Exchange and Canadian Venture Stock Exchange have neither approved nor disapproved the information contained herein. (Bloomberg)