Kuwait Energy reports second quarter 2011 activities

Kuwait Energy Company, one of the fastest growing independent oil and gas exploration and production companies in the Middle East, today issued its 2011 second quarter activity report announcing unaudited operating cash flow of USD29.7 million, a year-on-year rise of 40.8%. 

Kuwait Energy produced a daily average working interest production of 12,902 barrels of oil equivalent for Q2 2011, a 0.6% decrease from the previous quarter primarily due toLuzskoye field in Russia being shut-in for 40 days while a new bridge to transport the oil was being constructed to replace the old bridge damaged by floods.

Iraq

On 5 June, Kuwait Energy signed two 20-year gas development and production service contracts for the Siba and Mansuriya fields, with the Iraqi Ministry of Oil. The contracts were awarded to Kuwait Energy and its partners during Iraq’s third Petroleum Licensing Round in October 2010.

Exploration activities

Three exploration wells were drilled during Q2 2011. Two of these exploration wells were successful in discovering oil. The first well, Shebyl East-1 in East RasQattara (ERQ), Egypt, was drilled to a depth of 4,100 meters and initial tests recorded a production flow of 1,500 barrels of oil per day. The second well, ZZ-4 in Abu Sennan, Egypt, encountered oil in the Lower Bahariya formation and is undergoing testing.  Kuwait Energy has made a total of 12 discoveries in Egypt since 2008.

Development activities

Twelve development wells were drilled during the quarter; nine in the Karim Small Fields in Oman, two in the Burg El Arab and ERQ fields in Egypt and one in the Luzskoye field in Russia.

Yemen

The assessment of Yemen gas resources and a feasibility study, named the Yemen Gas Master Plan, conducted by Kuwait Energy has been completed as per the Memorandum of Understanding signed between Kuwait Energy and the Yemen Ministry of Oil and Minerals in October 2010. The study was submitted to the Petroleum Exploration and Production Authority (PEPA) of Yemen and discussions on the way forward are progressing.

Portfolio management

Kuwait Energy received the final payment of divestment proceeds for the sale of a 22% working interest in Abu Sennan, Egypt, to Beach Energy Limited. The partial divestment of a 15% working interest in the Mesaha concession in Egypt to Beach Energy is still awaiting final regulatory and governmental approvals.