Our strategy

Strategic objective

To become one of the leading independent oil and gas companies in the FSU.

A sustainable strategy for growth

Strategic priority: Delivering near-term production growth

Our progress in 2016

  • GTU3 construction has continued in line with guidance to complete construction in 2017. As of year-end 2016 it remains within our Board approved budget with approximately US$380 million spent
  • Production for the full year was over 40,000 boepd, in line with our guidance. This included production from three new wells which came online in Q4 of 2016. We plan to drill seven wells in 2017

KPIs aligned to our strategic objectives

  • Production growth in 2018 and beyond (boe)
  • Production growth and reserve growth

Risks associated with our strategy

  • GTU3 development project is subject to risks related to delay, non-completion and cost overruns
  • Drilling can be subject to cost overruns and technical issues preventing successful outcome of the wells

Development plans for 2017-2019

  • GTU3 scheduled for completion in 2017
  • Production target of a minimum of 44,000 boepd in 2017 and 55,000-80,000 boepd in 2018


Strategic priority: Appraising and developing near-term projects

Our progress in 2016

  • Continued to grow proven reserve base through appraisal of Chinarevskoye and three new fields
  • Three wells successfully drilled during 2016 in order to maintain production

KPIs aligned to our strategic objectives

  • 1P Reserves (boe)

Risks associated with our strategy

  • Inaccurate assessments or unsuccessful exploration of the new fields could result in the overstatement of the Group’s oil and gas reserves
  • Failure to drill the production wells would have resulted in missed production guidance

Development plans for 2017-2019

  • Completion of the Chinarevskoye drilling programme and testing of Rostoshinskoye appraisal well during 2017
  • Dynamic drilling programme in order to maintain production and ramp up in line with oil price movements


Strategic priority: Exploration upside through M&A

Our progress in 2016

  • Continuously monitored M&A opportunities in and around the Chinarevskoye field, as well as in other strategic areas of Kazakhstan

KPIs aligned to our strategic objectives

  • 2P Reserves (boe)

Risks associated with our strategy

  • Future earnings may be adversely impacted by changes in the market

Development plans for 2017-2019

  • Opportunities for acquisitive growth will be evaluated on an ongoing and opportunistic basis


Strategic priority: Linking corporate responsibility to the growth of the Company

Our progress in 2016

  • Increased presence in local communities, and reported on well-being of employees and working environment

KPIs aligned to our strategic objectives

  • Number of man hours without loss of working hours (million)

Risks associated with our strategy

  • Legal framework for environmental protection and operational safety still being developed in Kazakhstan

Development plans for 2017-2019

  • Focus on expanding QHSE policy to include initiatives that go beyond day-to-day activities, such as contractor HSE management and environmental reporting


Strategic priority: Focusing on delivering shareholder value

Our progress in 2016

  • Implemented cost cutting programme, scaled back drilling, ensured hedging programme was in place

KPIs aligned to our strategic objectives

  • Opex per boe below US$4, only 3 production wells drilled, US$30m received from hedging programme

Risks associated with our strategy

  • The Group’s activities in the Chinarevskoye field are currently the Group’s sole source of revenue

Development plans for 2017-2019

  • The Group aims to strike a balance between reinvesting in future growth and returning cash to our shareholders


Our business model

A simple, sustainable and successful business model

Our track record of successfully building and financing large infrastructure while developing reserves into commercial production puts us in a unique position. With our management team’s outstanding technical and regional expertise in both oil and gas we can use this platform to deliver future growth to our shareholders.

How we run our business is equally important in enabling us to successfully deliver our business plan and map our growth strategy. Protecting our business, sustaining our good reputation, maintaining our entrepreneurial culture and contributing to social and economic development are the cornerstones on which we are building our business.