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Kuwait Energy Major Milestones
Month
Milestones
April 2014
Sale of Ukraine assets
July 2014
Block 9 farm-out, Iraq
Kuwait Energy entered into an agreement to farm-out a 10% participating
interest in the Block 9 service contract, which shall be completed in 2015.
August 2014
High yield bond
Kuwait Energy received a credit rating of B- from both Fitch and Standard &
Poor’s. This allowed the Group to issue Senior Guaranteed Notes at a yield of
9.5% due in 2019. As a result, Kuwait Energy raised US$ 250 million in bonds.
October 2014
First oil discovery in Block 9, Iraq
The discovery was at the first target, the Mishrif formation at 2,700 metres,
in its Block 9 exploration well, ‘Faihaa-1X’.
Preliminary tests of the Faihaa-1X Mishrif formation resulted in a flow rate
of circa 2,000 bopd of 20 API oil on 32/64 inch choke.
Discovery at Abu Sennan, Egypt
The exploration well ASA-1 ST 3 on the Abu Sennan license, onshore Egypt
discovered hydrocarbons in the Abu Roash ‘E’ and ‘C’ formations.
The well was tested successfully over the Abu Roash ‘E’ and Abu Roash ‘C’
reservoirs, with flow rates achieved of 1,604 bopd and 2,164 bopd respectively.
Successful completion of the appraisal of the El Salmiya-6 well. The test
results from the primary target, Kharita Sandstone, are 2,750 bopd and 9.7
mmscf/d of gas on ¾ inch choke.
November 2014
Sale of Russia assets
December 2014
Discovery at East Ras Qattara, Egypt
Shahd-4 well on the East Ras Qattara development lease, located in the
Northern Western Desert onshore Egypt, discovered hydrocarbons in the
Wadi El Natrun formation (Jurassic formation).
Tests of this formation achieved flow rates of 1,275 bpd of condensate with
51 API and 12.5 mmscf/d of gas on choke 32/64 inch choke; and 2,400 bpd
of condensate and 25 mmscf/d on choke 64/64 inch choke.
It is the first time that the Jurassic formation has been proven to be a
hydrocarbon producer in the East Tiba Half Graben sedimentary basin.
Second oil discovery in Block 9, Iraq
Another discovery was at the second target, the Yamama formation at 4,000
metres, in Block 9 exploration well, ‘Faihaa-1X’,
located in Northern Basra, Iraq.
Preliminary tests of the Faihaa-X1 Yamama formation resulted in oil flow
rates of circa 5,000 and 8,000 bopd of 35 API crude on 32/64 inch choke and
64/64 inch chokes respectively.
Roger Phillips
Chief Financial Officer
“We are proud to achieve record results in
sales revenue and net profit for 2014.”
Block 9 rig lit at dusk