Bond Offering Memorandum 23 July 2014 - page 342

Kuwait Energy
EL-12-211107
79
4.
The volumes reported here are “unrisked” in the sense that no adjustment has been made for
geological or commercial risk, i.e. the risk that no discovery will be made or that any discovery would
not be developed.
5.
Prospective Resources should not be aggregated with each other, or with Reserves or Contingent
Resources, because of the different levels of risk involved.
6.5
Yemen
In Yemen, KE holds interests in Blocks 5, 43, 49 and 82. The location of these Blocks is
shown in Figure 2.1. A number of Prospects have been identified in Block 43, where the
producing Nabrajah Field is located (as described in Section 2.2) and Block 49, where
some non-commercial discoveries have been made (as described in Section 2.3).
Additional Leads have been identified in Blocks 43, 49 and 82. No Prospective
Resources are currently attributed to Block 5.
Figure 6.2 illustrates the stratigraphy of the Say’un-Masila and Sabatayn Basins, in which
Blocks 43, 49 and 82 lie. The primary productive reservoir in the Basins is the
Cretaceous Lower Qishn Sandstone Formation. The Upper Qishn Carbonate, the Sa’ar,
Madbi and Shuqra Carbonates, and the Naifa, Lam and Kohlan Sandstones are also
productive in places, though reservoir quality is variable in these secondary reservoirs.
Fractured Basement rocks have also proven productive in some areas of the basin, but
productivity relies on fracture distribution and density and this emerging play is not yet
well understood. The proven source rock is the Upper Jurassic Madbi Formation and
hydrocarbons seeps are common throughout the dry, irregular terrain.
In all these Blocks, the seismic data quality is poor to locally fair for structural mapping.
Seismic acquisition and processing are difficult because of the irregular terrain. The
various 2D seismic grids often have different datums, polarities and amplitudes making
seismic interpretation very challenging. Identification of Prospects and Leads is therefore
difficult and trap definition is one of the major risks.
6.5.1 Block 43
Block 43 is in the development phase, which lasts until April, 2025 and there are
no further exploration obligations. It is located onshore in the Ghayl Bin Yumain
sub-basin of the Say’un-Masila Basin and has an area of 933 km
2
. It includes the
producing Nabrajah oil field and lies immediately to the east of Block 14, where
the Masila fields are reported to contain more than 1 BBbl of recoverable oil.
Outside of the Nabrajah field, nine wells have been drilled on the block, but all
were dry holes. About half of these wells were drilled in recent years, after
acquisition of 3D seismic data.
Sixteen Prospects and eight Leads have been identified in the Qishn, Madbi,
Shuqra and Basement Formations (Figure 6.3, Table 6.7 and Table 6.8).
1...,332,333,334,335,336,337,338,339,340,341 343,344,345,346,347,348,349,350,351,352,...567
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