Kuwait Energy
EL-12-211107
37
Three new wells were drilled in the second half of 2013. Al Nasr-36 tested at 3,100 bopd
from Lower Alif and 3,200 bopd from Upper Alif, and was put into production from the
Lower Alif in September. Al Nasr-40 and Al Nasr-45 were put into production from the
Upper Alif in November and April (2014) respectively with initial rates of 755 bopd and
3,250 bopd, which was higher than expected.
Two more new wells are planned in Al Nasr in 2014, five more in 2015 and one more at
the beginning of 2016. Future production from existing wells has been estimated by
decline curve analysis, taking into account the current production problems and the plans
to fix them, and that from the new wells by extrapolation of the performance of recent
in-fill wells. A reservoir study to optimize the location of the new wells and future
production from Al Nasr field was in progress at end May, 2014.
Reserves are attributed up to the end of the current PSA including the Force Majeure
period, i.e. up to 2
nd
December, 2016. Given the maturity of the fields and the relatively
short time remaining in the PSA, there is little technical uncertainty in the production
profiles over this period. Future production stoppages due to further pipeline outages, if
any, would not affect produced volumes provided that the Force Majeure argument allows
the PSA to be extended proportionately, but would affect NPV. Production associated
with the possible 5-year extension period contemplated in the PSA (i.e. to 2
nd
December,
2021) has been estimated by similar means but has been classified as Contingent
Resources pending confirmation that the extension will in fact be granted.
Table 2.2 shows the breakdown by field of the Reserves attributed to Block 5.
TABLE 2.2
FIELD LEVEL BREAKDOWN OF RESERVES, BLOCK 5, YEMEN
AS AT 31
st
MAY, 2014
Field
Gross Field Oil Reserves (MBbl)
Proved
Proved +
Probable
Proved +
Probable +
Possible
Al Nasr
23,563
30,584
36,870
Dhahab
1,881
2,146
2,399
Halewah
2,008
2,255
2,590
Jannah
81
86
92
Total
27,533
35,072
41,951
Notes:
1.
The Reserves shown here are included in the Reserves shown in Table 0.2.
2.
Totals may not exactly equal the sum of the individual entries due to rounding.
Future CAPEX and OPEX estimates have been supplied by KE and are based on
historical cost information and budgets. Key elements include:
US$3.0 MM for each new development well;
US$20.8 MM spread over the period 2014-2016 for work-overs, flow-lines, water
source wells and additional compression;
