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Kuwait Energy reports Q3 2011 activities

Revenues of US$47.9 million, up 33.8% year-on-year

 

Kuwait, October 2, 2011 - Kuwait Energy Company (“Kuwait Energy”, “KEC” or “the Company”), one of the fastest growing, independent, oil and gas exploration and production companies in the Middle East, announces unaudited revenues of US$47.9* million for Q3 2011, up 33.8% from Q3 2010 and up 3% from Q2 2011.

Operational highlights

 

     Two gas and condensate discoveries in the KEC-operated GPZZ-4 and Al Ahmadi-1 wells in the Abu Sennan concession, Egyptian Western Desert. The two new discoveries bring the total number of discoveries in Egypt, by KEC, to 13;

     In Iraq, KEC is currently evaluating the 12 exploration blocks that will be tendered in the upcoming petroleum licensing bid round, due to take place on March 7-8, 2012;

     Major milestone achieved in the development of the Lower Bahariya reservoir in the Shahd-2ST well located in the East Ras Qattara concession, Egypt. The current average gross production from the well is  4,400 barrels of oil per day; and

     Completion of partial divestment of 15% working interest in the Mesaha concession, Egypt to Beach Energy. Kuwait Energy retains a 15% working interest.

Financial and production highlights

9 Months 2011

9 Months 2010

Change

Q3 2011

Q3 2010

Change

Revenue (US$ Million)

136 *

108

25.9%

47.9 *

35.8

33.8%

Production (boepd)

13,154 *

13,220

-0.5%

13,568 *

13,168

3%

The Company also announced daily average working interest production for Q3 2011  of 13,568 barrels of oil equivalent, a 5.2% increase from the previous quarter and up 3% from Q3 2010, primarily due to the return of production from the company’s oil producing asset in Russia, after construction of a new bridge for transportation purposes was completed, as well as an added 4,400 barrels of oil per day (gross) of production from Shahd-2ST well in the ERQ field, Egypt as of early September 2011.

Sara Akbar, Chief Executive Officer of Kuwait Energy, said:

“We’ve had new successes during the month of September 2011 with encouraging flow rates from our two Egyptian discoveries. We’ve also sustained production levels and completed our planned development and exploration activities for the quarter. As we move forward, we will continue to focus on growth in the MENA region and within our existing operations, specifically in Egypt, Iraq and Yemen.”

 

Production

 

Asset

Daily Average Production (boepd)

Q3 2011

Q3 2010

Egypt

8,168

8,005

Oman

2,928

2,783

Yemen

605

752

Ukraine

1,195

904

Russia

671

724

Total

13,568

13,168

* Based on management accounts, unaudited by external auditors.

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Follow the company’s twitter news feeds: @KuwaitEnergy

For more information, visit Kuwait Energy’s website at: www.kec.com.kw

Or contact: Fawaz Al-Sirri, Mobile: +965-97187345, Email: fawaz@bensirri.com

Notes to Editors

 

·         Headquartered in Kuwait, Kuwait Energy Company is one of the few independent oil and gas exploration and production companies operating in the Middle East;

·         Established in 2005, and profitable since inception , Kuwait Energy has oil and gas assets in eight countries namely: Egypt, Iraq, Yemen, Oman, Ukraine, Latvia, Russia and Pakistan;

·         Kuwait Energy’s proven and probable working interest reserves at year end 2010 were 48.8 million barrels of oil equivalent. The Company’s current working interest production is 15,000 barrels of oil equivalent per day.

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