The block, which is expected to hold total recoverable gas and condensate reserves of around 203.4 million barrels of oil equivalent , is located in western Kazakhstan near Uralsk city in close proximity to a number of producing fields.
KMG EP will pay $149.1m for the 50% stake in Ural, including $61.3m for shares and $87.8m of shareholder loans, which will be repaid to KMG EP after commercial production starts.
The company said that the deal will be financed with the KMG EP’s own funds.
Ural Oil and Gas operates under a subsoil exploration contract that expires in May 2014 with the right to extend the contract for production of hydrocarbons.
