KrisEnergy nearly tripled its revenue in Q1 2016 and more than doubled its production when compared to Q1 2015, due to two new fields that started production in the Gulf of Thailand.
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Image from KrisEnergy. |
The Singaporean company is hailing its two new oil fields, Wassana and Nong Yao, that came onstream in August 2015 and June 2015, respectively for the increase.
Revenue for the period came in at US$33.1 million, up 190% from $11.4 million in Q1 2015. Production came in at 19,014 boe/d, 2.5 times higher than Q1 2015’s 7,699 boe/d.
However, KrisEnergy did experienced a 61% decrease in oil price, going from $53.20/bbl in Q1 2015 to only $20.85/bbl this period.
At Wassanain G10/48, development drilling was completed during the period with 13 producer wells and one water disposal well on stream. Production at the field reached a peak of approximately 12,800 b/d and averaged 10,285 b/d in Q1.
Production at the Nong Yao field in G11/48 reached a peak of about 11,400 b/d in Q1 with an average of 9784 b/d in the period. KrisEnergy said that discretionary expenditures have been removed from the planned 2016 work program.
In addition to these fields, KrisEnergy also saw an uplift in production from the B8/32 & B9A oil and gas complex, which was boosted by an increase in wireline zonal recompletions. Oil production averaged 29,240 b/d in Q1 and gas production has maintained at 148 MMcf/d throughout the quarter, a rate not achieved since June 2012. Five new development wells were drilled in April 2016 and two additional wells were drilled in May 2016.
“Despite our strong operational performance, we continue to face many challenges that need to be addressed in the coming months,” Keith Cameron, KrisEnergy CEO said. “Depressed oil prices and the general lack of confidence in the upstream sector have impacted the support we are receiving from financial institutions, which will lead to significant corporate actions similar to those being announced by many other oil and gas companies worldwide. In the meantime, we continue to focus on cost controls including reductions in directors’ fees and employee remuneration. We have also reduced headcount where possible.”
KrisEnergy’s board is also exploring all viable capital raising options to meet obligations to its agreement on an amendment to $122 million revolving credit facility to extend its repayment deadline by 24 March 2017.
Under the terms of the amendment, KrisEnergy is required to repay and cancel $55 million of the facility by 29 July 2016 and to raise minimum new capital of $100 million and $50.million by 30 June 2016 and 30 November 2016, respectively.
“The company is working with a number of parties to execute this capital raising over the course of the next few months,” KrisEnergy said.
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