Kuwait Energy achieves 17.4% year on year increase in revenue

18 - May - 2014

Kuwait, 18 May 2014: Kuwait Energy (“The Company”), one of the fastest growing independent oil and gas exploration and production companies in the Middle East, today announces an update on its financial and corporate activities during Q1 2014.

The Company reported US$64 million revenue for Q1 2014, an increase of 17.4% compared to the corresponding period of last year. Average daily working interest production increased 10.6% to 23,759 barrels of oil equivalent per day (boepd) compared to the corresponding period of last year. As to comparisons to the previous quarter, revenue and production are lower by 7.6% and 1.0% respectively.

By the end of Q1 2014, the outstanding receivables were US$134 million as a result of collecting US$33 million during the first quarter 2014.

Sara Akbar, Chief Executive Officer of Kuwait Energy, commented, “We are pleased with ending the first quarter of the year with good performances. This only makes us look forward to increased operational success in 2014 as we move forward with our strategy, which is to focus on our core operations in the MENA region.”

The main development activities during Q1 2014 included the drilling of 17 development wells (10 in Oman and 7 in Egypt). US$39.0 million in development expenditure was mainly spent on the acquisition and processing of 3D seismic data and demining on Siba, Iraq. Exploration expenditure during Q1 2014 was US$8.7 million primarily spent on exploration drilling in Egypt and Iraq.

On the strategic front, Kuwait Energy continues with its strategy of focusing on the MENA region, where it has established strong presence and operational track record. To this effect, the Company is undergoing a rigorous process of rationalizing its portfolio in Eurasia and Pakistan with the intention to exit and focus its activities in the MENA region. Kuwait Energy is also looking into farming out some of the single asset exposure to achieve better risk profile and optimize its capital expenditure program. To rebalance country exposure, the Company is currently actively pursuing strategic partners for its existing assets via a farm-out process in countries such as Iraq.


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