Singapore-based KrisEnergy’s revenue has tripled in 1H 2016, as a loss of production occurred at its five Wassana wells in the Gulf of Thailand.
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Wassana illustration, from KrisEnergy. |
The company reported revenues in 1H 2016 to reach US$63.8 million, almost triple when compared to 1H 2015, which was $23.1 million, attributing the increase to the higher production, in spite of the steep decline in oil and gas prices.
During the period, KrisEnergy’s working interest production was up more than 133% from 1H 2015 at 17,812 boe/d due to additional crude oil streams from the Wassana and Nong Yao fields in the Gulf of Thailand, which commenced production in Q3 and Q2 2015, respectively.
However, when looking at the company’s Q2 2016 average working interest production, a decline of 12.6% was present, coming in at 16,611 boe/d when compared to Q1’s 19,014 boe/d that the company said was primarily due to lower production rates from five development wells in the Wassana field.
Wassana
Average production at Wassana in G10/48 for the period ending on 30 June came in at 9102 b/d, which was slightly below the company’s expectations.
“The deficit is most likely to be caused by mechanical problems at up to five wells,” KrisEnergy said. “Plans are being developed to remedy the issue.”
The Department of Mineral Fuels (DMF) approved the reservation area application for G10/48 in May 2016, reducing the acreage size to 1783sq km from 4696sq km.
B8/32, B9A, and Nong Yao
The B8/32 and B9A complex in the Gulf of Thailand continue to produce at the highest rates in more than three years due to wireline zonal recompletions and despite a planned five-day shutdown for maintenance in May 2016. Seven infill wells were drilled at B8/32 and B9A in Q2 2016. Average gross production up to 30 June 2016 was 52,289 boe/d.
Production at KrisEnergy’s three other Gulf of Thailand fields – B8/32, B9A and Nong Yao in the Gulf of Thailand outpaced expectations in 1H 2016, the company said.
At Nong Yao, the first export cargo in G11/48 was lifted to China in June 2016. The contract area acreage of G11/48 was reduced to 1079sq km from 3374sq km in May 2016 following the DMF’s approval of the reservation area application. The license now covers four discreet areas in the Gulf of Thailand. The drilling of four infill wells commenced in July 2016, which are expected to add 4000 b/d gross production. Average gross production up to 30 June 2016 was 9722 b/d.
KrisEnergy said its portfolio remains robust with at least five future development projects as well as very significant exploration upside, which the company believes will lead to additional developments.
“This will be the cornerstone to the future growth of the company with the potential to add reserves and production. We continue to investigate ways to fund these developments and access the exploration upside within the group,” KrisEnergy said.
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