OREANDA-NEWS. August 15, 2012. MND Group, a member of KKCG Investment Group, has completed a major international investment in Georgia, which is to exceed CZK 2 billion over the next three years. MND Group has purchased from Blake Oil & Gas Limited, 50-percent interests in several companies holding production and exploration licenses to three localities in Georgia. The completed transaction constitutes MND Group's largest international investment in oil exploration and production.

Prague/London, August 14 2012: MND Group, a member of KKCG Investment Group, has successfully completed another major acquisition in the oil exploration and production industry through the purchase, from Blake Oil & Gas Limited, of 50-percent interests in Ninotsminda Oil Company Limited, CanArgo (Nazvrevi) Limited and CanArgo Norio Limited, oil companies holding production and exploration licenses in Georgia. Oil production is currently in progress under the Ninotsminda license, while intensive appraisal operations under Norio and Manavi licenses are to be launched soon. The primary objective of this ambitious project is to accelerate the development of the currently producing Ninotsminda field as well as to complete the appraisal of the substantial

Based on an independent study conducted by Netherland, Sewell & Associates, Inc. in 2011, the total estimated reserves in all deposits are 339, 3 mmbo and 58,5 Bcf. All three licenses, covering an area of 1,407 km^ are located in the immediate vicinity of Tbilisi, the capital city with developed infrastructure.

Over the next three years, MND Group is prepared to invest an amount exceeding CZK 2 billion in Georgia. In the event that further deposits are discovered, the total amount of investment will reach 38 billion CZK in the next 7 years.

Miroslav Jestrabik, the KKCG Group's Investment Director responsible for crude oil and natural gas, states: "The investment in Georgia is another project undertaken by the MND Croup's new international team of experts, whose primary objective is to ensure dynamic expansion of MND Group and to increase international oil and gas production."

Bernhard Cociancig, CEO MND International, adds: "We have succeeded in acquiring a significant investment project through which we can make the most of our extensive international experience in the field of exploration and development of new deposits."

In reference to the strategic partnership, Vincent McDonnell CEO of Blake Oil & Gas states:

‘‘We are delighted to welcome MND into the joint venture. In addition to additional significant funding, our new partner will bring a wealth of experience and expertise to the projects. Work will begin immediately on preparing for seismic acquisition with a view to an extensive drilling programme over the coming three years."