Kuwait Energy
EL-12-211107
3
properties. However, GCA is not in a position to attest to property title or rights,
conditions of these rights including environmental and abandonment obligations, and any
necessary licenses and consents including planning permission, financial interest
relationships or encumbrances thereon for any part of the appraised properties.
In carrying out this study, GCA is not aware that any conflict of interest has existed. As an
independent consultancy, GCA is providing impartial technical, commercial and strategic
advice within the energy sector. GCA’s remuneration was not in any way contingent on
the contents of this report and in its preparation GCA has maintained, and continues to
maintain, a strict independent consultant-client relationship with KE. Furthermore, the
management and employees of GCA have no interest in any of the assets evaluated or
related with the analysis carried out as part of this report.
Staff members who prepared this report are professionally qualified with appropriate
levels of experience and expertise to perform the work.
GCA has conducted site visits to two of the producing assets in Egypt operated by KE;
reports on these site visit reports are included as Appendix I. No other site visits were
deemed necessary based on KE’s photographic evidence and responses to
questionnaires (also summarized in Appendix I) for the other principal producing asset
operated by the company. GCA’s visit was undertaken to examine the facilities and
operations and to assess their condition and state of operability. GCA does not warrant
they are in compliance with any applicable regulations in terms of standards, rating,
health, safety and environment.
Definition of Reserves and Resources
The Petroleum Resources Management System published by the Society of Petroleum
Engineers (SPE), the World Petroleum Council (WPC), the American Association of
Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers
(SPEE) in March 2007, known as the SPE PRMS, has been used as the basis for the
classification and categorization of hydrocarbon volumes. An abbreviated form of the
SPE PRMS is attached as Appendix II.
Reserves are those quantities of petroleum that are anticipated to be
commercially recoverable by application of development projects to known
accumulations from a given date forward under defined conditions. Reserves
must therefore be discovered, recoverable, commercial and remaining (as of the
evaluation date), based on the development project(s) applied. Reserves are
further categorized as Proved (1P), Proved plus Probable (2P) and Proved plus
Probable plus Possible (3P) in accordance with the level of certainty associated
with the estimates. All categories of Reserve volumes quoted herein have been
determined within the context of an economic limit test (ELT), pre-tax and
exclusive of accumulated depreciation amounts, prior to any Net Present Value
analysis. The Reserves quoted in this report are based upon the future price
scenario that has been prepared by GCA.
Contingent Resources are those quantities of petroleum estimated, as of a given
date, to be potentially recoverable from known accumulations, but the applied
project(s) are not yet considered mature enough for commercial development due
to one or more contingencies. Contingent Resources may include, for example,
projects for which there are currently no evident viable markets, or where
commercial recovery is dependent on technology under development, or where
evaluation of the accumulation is insufficient to clearly assess commerciality. It
