OREANDA-NEWS. March 25, 2011. Zhaikmunai LP (LSE: ZKM), the oil and gas exploration and production business with assets in north-western Kazakhstan, today provides an operational update on its Gas Treatment Facility (GTF) as well as a specific review for the period from 30 September to 31 December 2010, reported the press-centre of KASE.

Gas Treatment Facility (GTF) Update

- Test production of condensate from the Gas Treatment Facility (GTF) has started and Zhaikmunai expects that commercial production from the first trainof the GTF will commence within the next two weeks. This represents a delay of approximately 2 months compared to management's initial expectations, as expressed in the Company's press release of 16 December 2010;

- Concurrently, Zhaikmunai's contractors, KasStroyService and Exterran, are pursuing commissioning and final operational testing of the GTF;

- This test production follows mechanical completion of the Gas Treatment Facility (GTF) and the delivery of the "Act of Acceptance of a Completed Facility" for the GTF by the State Acceptance Commission;

- Zhaikmunai has agreed on terms for the offtake of all of its 2011 gas production from the GTF. While the details of such terms are confidential, Zhaikmunai can confirm that they reflect terms and conditions generally applicable in the market and are in line with management's expectations. The gas sales contract incorporating these terms will be exchanged on the date  commercial production commences.

Q4 Review and Financial Highlights

- Revenues were USD50.38 million, an increase of 39% compared with Q4 2009;

- The Partnership's 100% subsidiary Zhaikmunai Finance B.V. has completed a  successful USD450 million bond offering, which allowed the Partnership's 100% operating subsidiary Zhaikmunai LLP ("Zhaikmunai" or "the Company") to repay its bank debt in full.