Bond Offering Memorandum 23 July 2014 - page 286

Kuwait Energy
EL-12-211107
23
FIGURE 1.4
ABU SENNAN CONCESSION MAP
In 2011, KE drilled the ZZ-4 well followed by the Al Ahmadi-1 exploration well, both of
which produced oil and gas in short term production tests of the AR-G and Lower
Bahariya. KE then drilled the Al Jahraa-1 and El Salmiya-1 exploration wells on two
structures to the east and west of the ZZ area (Figure 1.4). Both produced oil and gas in
short term production tests, the first from the AR-E, and the second from both the AR-E
and AR-C.
A further exploration well, ASA-1X, was drilled in late 2012, to the north of El Salmiya
(Figure 1.4) and discovered oil in the Lower Bahariya Formation. In 2013, appraisal wells
Al Ahmadi-2 and El Salmiya-2 led to significant downward and upwards revisions in
STOIIP in the respective fields; El Salmiya-2 also discovered oil in the Lower Bahariya
and Kharita Formations, producing 3,500 bopd from the latter in a short term test.
In July 2012, an extended period of trial production began following installation of rented
processing facilities, with produced oil being exported by truck and produced gas being
flared. The oil production rate from the four wells drilled in 2011 peaked at more than
2,000 bpd initially but had fallen to about 750 bpd by the end of 2012 mainly because of a
steep decline in oil production from both ZZ-4 and Al Ahmadi-1 as gas production from
these two wells increased. With the addition of El Salmiya-2 and ASA-1X in 2013,
production attained 1,600 bopd from July to October but had fallen to 800 bopd by year
end, of which 690 bopd was from El Salmiya, due to natural decline and pump failures.
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