Kuwait Energy reports record production and revenues in Q1 2012

18/04/2012 19:59 AST

Kuwait Energy, one of the fastest growing independent oil and gas exploration and production companies in the Middle East, issued its quarterly report for Q1 2012, reporting unaudited record revenues of $65.8m, up 58.9% from Q1 2011 and 44.3% from Q4 2011.

Kuwait Energy also achieved a new record quarterly production rate of 17,370 barrels of oil equivalent per day (boepd) at the end of Q1 2012, up 33.8% from Q1 2011 and 15.7% from Q4 2011, supported by an increase in production in Egypt from exploration successes and development wells brought on line.

Kuwait Energy Chief Executive Officer, Sara Akbar, said, "We've closed yet another record quarter, mainly thanks to our recent discoveries in Egypt and an increase in production from Oman and Russia. The first quarter was also a milestone operationally with the launch of the first phase of operations in the Siba gas field in Iraq. We look forward to continued operational successes in the countries we operate in the Middle East."

Operational highlights

• In Egypt, four new exploration wells were spud and four other wells were carried over from 2011. Kuwait Energy made three successes from the carry over wells: the Al Jahraa-1X and El Salmiya-1 wells located in the Abu Sennan concession, and the Ahmad-1X located in Area A. The Company also made a successful discovery from one of the spudded wells in 2012: West Ahmad-1X in Area A started producing at a gross initial rate of 1,250 boepd.

• In Oman, six wells were drilled in the Karim Small Fields. Four of these wells were completed and started producing at the end of the quarter with an initial production rate ranging between 100 and 250 boepd. The two other wells were still drilling at the end of the quarter.

• In Russia, two development wells (324 and 336) were drilled in the Luzskoye field, with well 324 producing at a gross initial rate of approximately 150 boepd and well 336 was still being completed at the end of the quarter.

Latest Updates

Kuwait Energy completed a strategic investment agreement with Dubai-based Abraaj Capital. The investment through Abraaj Capital's APEF IV Fund will enable Kuwait Energy's ongoing growth and development plans and facilitate its emergence as a regional independent exploration and production pioneer with world-class expertise. The agreement between both parties was signed in early April 2012.

The Company has carried out preliminary technical evaluations on a number of the 12 exploration blocks that the Iraqi Ministry of Oil is offering in the country's fourth bidding round.

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