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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
One recordable Lost Time Incident
(“LTI”) took place in Kuwait Energy’s operated areas.
Average daily Working Interest
(“WI”)
production
for Q1 2016 is
25,747 boepd
; an increase of 2.2%, as
compared to Q4 2015 (25,194 boepd) mainly due to the production increase in Block 9, Iraq.
Gaffney, Cline & Associates (“GCA”) have completed and signed off the Company’s Year-End 2015 Reserve
& Resources Report which resulted in the recording of
818 mmboe of audited 2P WI reserves for YE2015
.
A net increase of 147 mmboe (22%) in comparison to 2014 2P reserves that stood at 671 mmboe.
Daily oil production from Faihaa-1 well
in Block 9, Iraq has increased in Q1 2016 to
5,600 bopd (gross)
due to choke size increase. The daily production from Faihaa-1, which commenced on 12 October 2015
and stabilized on the 28
th
of that same month, averaged at around 5,000 bopd (gross) for its period of
production in Q4 2015.
Faihaa-2 well in Block 9 was spud on 3
January 2016 and drilling activities have been ongoing since then
with all formation tops matching the original design prognosis. By the end of March 2016; almost
3,155
meters have been drilled out of a target of 4,535 meters
. The target completion date is June 2016.
On 29 March 2016,
Kuwait Energy signed an Export Oil Sales Agreement with State Oil Marketing
Company (SOMO)
– the Iraqi national company responsible for marketing Iraq’s oil – which puts in place
the mechanism by which Kuwait Energy will be paid for its services in Block 9, Iraq. Kuwait Energy is
expected to be allocated its first cargo by Q3 2016 covering its production of oil in Block 9 from October
2015 to March 2016.
The Engineering, Procurement and Construction (EPC) Works in Siba continues on the ground
. We are
working towards first gas by the end of the year however there may be delays as a result of EPC work
being conducted slower than planned.
Since the end of Q1 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
allows
.
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 next financial report will be the audited Year-End 2015
Financial Report scheduled to be issued by the end of April 2016.
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