Reach Energy To Increase Kazakh Oil Field Production By Up To 51%
Reach Energy Bhd wants to ramp up oil production in its 60%-owned Kazakhstan oil field by up to 51% to 5,000 barrels of oil per day (BOPD), from 3,301 BOPD as at end-2016.
In a statement today, the company said it looks to increase production to between 4,000 BOPD and 5,000 BOPD by the end of 2017.
In line with this, Reach Energy said it will continue to play a proactive role towards the development of Emir-Oil fields, especially in the optimisation of near-term production growth through existing successful field development plans and application of new technologies.
Last November, Reach Energy completed the acquisition of 60% equity interest in Palaeontol BV and 60% of the company’s shareholders’ loan at an adjusted purchase consideration of US$175.9 million, fulfilling the requirements of a special purpose acquisition company to acquire a qualifying asset within a 36-month period.
Palaeontol BV is an investment holding company and is the sole interest holder of Emir-Oil LLP.
Emir-Oil holds the entire subsoil use rights (100% working interest) in an 850.3 square kilometres onshore hydrocarbon exploration and production contracted area located in Mangystau Oblast in the southwestern region of the Republic of Kazakhstan.
Reach Energy’s share price gained 0.5 sen or 1.1% to 46 sen at market break, giving it a market capitalisation of RM587.80 million.