London-listed Kazakh oil and gas producer KazMunaiGas Exploration Production (RDGZ.KZ), or KMG EP, aims to raise production at its core fields, a process which will require additional capital expenditure, a senior company official said Friday.

"Our current approach is to see whether we can increase production at core fields somewhat," Alexander Gladyshev, the company's managing director for investor relations, told a conference call. "At the same time, it is clear it'll require additional capital expenditure and our goal is to optimize the combination of the two."

He said the company's management was still working production plans for next year.

Gladyshev also said KMG EP was still in talks with its parent company Kazakh state oil and gas company KazMunaiGas over acquiring four onshore exploration blocks.

"This work is expected to be completed by the end of this year or early next year," he said, adding that boosting the company's exploration portfolio was "one of the top priorities of our strategy."

Gladyshev didn't provide any costs or reserves estimates for the exploration blocks the company was in talks to acquire from KazMunaiGas.

KMG EP's main growth strategy has been through acquiring production assets from its parent company. This year it also acquire a 35% stake in the White Bear gas condensate prospect in the North Sea from BG Group (BG.LN), and aims to diversify its portfolio by getting involved in more offshore projects.

The company, in partnership with Korea Gas Corp., last month won the rights to develop the Akkas gas field in Iraq .

The company announced Friday that its third-quarter net profit rose 9.6% on year to 56.77 billion tenge ($384.8 million) on higher oil prices. KMG EP's consolidated oil production in the first nine months of this year was 9.95 million metric tons, or 270,000 barrels a day, a 15% rise compared with the same period of 2009, mainly due to acquisitions.

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