BMB Munai Inc (KAZ, Financial) filed Quarterly Report for the period ended 2010-09-30.
Bmb Munai Inc has a market cap of $35.25 million; its shares were traded at around $0.68 with and P/S ratio of 0.62. KAZ is in the portfolios of Jim Simons of Renaissance Technologies LLC.
During the three months ended September 30, 2010 we realized revenue from oil sales of $12,047,614 compared to $16,074,217 during the three months ended September 30, 2009. The significant contributing factors to the 25% decrease in revenue from oil sales was a 32% decrease in sales volume as a result of decreased production, as discussed above. During the three months ended September 30, 2010 and 2009 we exported 100% and 94% respectively, of our oil to the world markets and realized the world market price for those sales. Revenue from oil sold to the world markets made up 98% and 97% of total revenue, respectively, during the three months ended September 30, 2010 and 2009. As discussed in more detail above, we expect the reduced production rates experienced during the second fiscal quarter to begin to be offset during the third fiscal quarter, in large measure, as a result of the improvements that will be realized in the reconstructed oil storage facility and the production increases realized by the drilling activities commenced in the second fiscal quarter that have been or will be completed in the third fiscal quarter.
Rent Export Tax. Rent export tax is calculated based on the export sales price and ranges from as low as 0% if the export sales price is less than $40 per barrel to as high as 32% if the price per barrel exceeds $190. During the three months ended September 30, 2010 rent export tax paid to the government was $2,388,117 compared to $2,446,476 during the three months ended September 30, 2009.
In July 2010 the government issued a resolution which reenacted the export duty for several products (including crude oil.) We became subject to the export duty in September 2010. The export duty is calculated based on a fixed rate of $20 per ton or approximately $2.60 per barrel exported. As a result of the export duty being reenacted, the export duty during the three months ended September 30, 2010 amounted $177,803. We were not subject to export duty during the three months ended September 30, 2009. Export duty was not recorded as part of oil and gas operating expense and was not included in oil and gas operating expense per BOE calculation.
Oil and Gas Operating Expenses. During the three months ended September 30, 2010 we incurred $2,018,496 in oil and gas operating expenses compared to $2,361,284 during the three months ended September 30, 2009. This decrease is primarily the result of a 15% increase in transportation expense, which was more than offset by a 48% decrease in production expense and an 18% decrease of mineral extraction tax for the three months period ended September 30, 2010 compared to the three months ended September 30, 2009.
General and Administrative Expenses. General and administrative expenses during the three months ended September 30, 2010 were $4,328,090 compared to $2,952,173 during the three months ended September 30, 2009. This represents a 47% increase. This increase in general and administrative expenses was the result of:
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Bmb Munai Inc has a market cap of $35.25 million; its shares were traded at around $0.68 with and P/S ratio of 0.62. KAZ is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
The contract we hold follows the above format. Our annual work program year ends on January 9 each year. From the beginning of the exploration stage of our contract through January 9, 2011, our minimum mandatory expenditure requirement totals $80,630,000. From the beginning of the exploration stage of our contract through September 30, 2010, we had expended $317,985,000 in exploration activities, including the drilling of 24 wells. Our minimum annual expenditure requirements are: $27,240,000 from January 2011 to January 2012; and $14,840,000 from January 2012 to January 2013.During the three months ended September 30, 2010 we realized revenue from oil sales of $12,047,614 compared to $16,074,217 during the three months ended September 30, 2009. The significant contributing factors to the 25% decrease in revenue from oil sales was a 32% decrease in sales volume as a result of decreased production, as discussed above. During the three months ended September 30, 2010 and 2009 we exported 100% and 94% respectively, of our oil to the world markets and realized the world market price for those sales. Revenue from oil sold to the world markets made up 98% and 97% of total revenue, respectively, during the three months ended September 30, 2010 and 2009. As discussed in more detail above, we expect the reduced production rates experienced during the second fiscal quarter to begin to be offset during the third fiscal quarter, in large measure, as a result of the improvements that will be realized in the reconstructed oil storage facility and the production increases realized by the drilling activities commenced in the second fiscal quarter that have been or will be completed in the third fiscal quarter.
Rent Export Tax. Rent export tax is calculated based on the export sales price and ranges from as low as 0% if the export sales price is less than $40 per barrel to as high as 32% if the price per barrel exceeds $190. During the three months ended September 30, 2010 rent export tax paid to the government was $2,388,117 compared to $2,446,476 during the three months ended September 30, 2009.
In July 2010 the government issued a resolution which reenacted the export duty for several products (including crude oil.) We became subject to the export duty in September 2010. The export duty is calculated based on a fixed rate of $20 per ton or approximately $2.60 per barrel exported. As a result of the export duty being reenacted, the export duty during the three months ended September 30, 2010 amounted $177,803. We were not subject to export duty during the three months ended September 30, 2009. Export duty was not recorded as part of oil and gas operating expense and was not included in oil and gas operating expense per BOE calculation.
Oil and Gas Operating Expenses. During the three months ended September 30, 2010 we incurred $2,018,496 in oil and gas operating expenses compared to $2,361,284 during the three months ended September 30, 2009. This decrease is primarily the result of a 15% increase in transportation expense, which was more than offset by a 48% decrease in production expense and an 18% decrease of mineral extraction tax for the three months period ended September 30, 2010 compared to the three months ended September 30, 2009.
General and Administrative Expenses. General and administrative expenses during the three months ended September 30, 2010 were $4,328,090 compared to $2,952,173 during the three months ended September 30, 2009. This represents a 47% increase. This increase in general and administrative expenses was the result of:
Read the The complete Report
