3
Who We Are
Kuwait Energy is an independent oil and gas company actively engaged in the exploration, appraisal, development
and production of hydrocarbons. Since establishment in 2005, we have built a high-quality, diversified portfolio of
oil and gas assets in the MENA region across Iraq, Egypt, Yemen and Oman. Our MENA portfolio consists of 10
exploration, development and production assets, of which we operate seven.
Kuwait Energy has its registered office in Jersey, its head office in Bahrain, its regional operational hub in Kuwait
and area offices in Basra, Baghdad, Cairo and Sana’a.
Key Highlights
No recordable Lost Time Incident
(“LTI”) took place in Kuwait Energy’s operated areas during this quarter.
Average daily Working Interest
(“WI”)
production
for Q2 2016 is
23,942 boepd
; a decrease of 7.1%, as
compared to Q1 2016 (25,747 boepd) mainly due to natural production decline in ERQ and Abu Sennan in
Egypt.
Faihaa-1 well in Block 9
, Iraq
continues to produce steadily
with Q2 2016 average daily WI production of
3,246 boepd
(
YTD average daily WI production of
3,321 boepd
); a slight decrease from last quarter’s
production rate as the well continues to stabilize. The daily production from Faihaa-1 commenced on 12
October 2015; with regular crude export started on the 28
th
of that same month.
Faihaa-2 well in Block 9
was spud on 3 January 2016 and reached target depth on
25 May 2016
.
Extensive
testing has been ongoing with
expected production to commence in August 2016
.
All formation tops
matched the original design prognosis. Furthermore, the Mishrif Reservoir at Faihaa-2 has shown
better
reservoir quality with a thicker and a higher (larger) Net Pay zone
.
Kuwait Energy is expected to be
allocated its first cargo from Iraq
in
September 2016
covering its
production of oil in Block 9 from October 2015 to March 2016 for a gross amount of US$13.9 million
(Kuwait Energy’s Share: 60%). As for Q2 2016 production; Kuwait Energy has already invoiced the Iraqi
government for production during this period, for a gross amount of US$10.0 million.
In Abu Sennan in Egypt,
Al Jahraa SE-1X
new exploration well proved to be a
successful discovery
with an
initial production rate of around
1,000 bopd (gross)
from the AR-E formation. Kuwait Energy is now
engaged with the Egyptian General Petroleum Corporation (EGPC) to attain the Development License
associated with this discovery. Once obtained, commercial production will commence. Furthermore, to
improve productivity from the existing ASH-1X well, a sidetracking commenced on 16 July 2016.
Siba's
Engineering, Procurement and Construction
(EPC) works
is gaining momentum and
progressing
with construction activities
on the ground. However,
delays to the planned first gas date are expected
due to non-controllable prevailing conditions.
Since the end of April 2015,
Block 5 production in Yemen
has been shut down. Kuwait Energy continues
to monitor the situation and is
operationally-ready to
commence is production for when the situation
permits
.
Financial Reporting
Under the US$250 million Senior Notes reporting requirements, Kuwait Energy is required to provide quarterly
unaudited management accounts within 90 days of the end of the first three quarters of the financial year and
audited financial statements within 120 days of the end of each financial year, all of which are available on the
Kuwait Energy website
( www.kuwaitenergy.co ). The most recent financial report was issued at the end of June
2016 for Q1 2016 financials and the
next financial report will be for Q2 2016 scheduled to be issued by the end of
September 2016
.
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