Kuwait Energy announces significant year-on-year increases in revenue and production in Q3 2013

06 - November - 2013

Kuwait, 11November 2013: 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 Q3 2013.

Highlights

  •  Q3 revenue up 42.2%, year-on-year, to US$82.2 million (Q3 2012: US$57.8 million)
  •  Q3 production up 40.9% year-on-year, to 24,694 boepd (Q3 2012: 17,520 boepd)
  •  Q3 revenue up 5.9%, quarter-on-quarter, to US$82.2 million (Q2 2013: US$77.6 million)
  •  Q3 production up 6.3% quarter-on-quarter, to 24,694 boepd (Q2 2013: 23,221 boepd)
  •  Increases in revenue and production were primarily due to production adds from the 15% interest in block 5, Yemen and increase in Shahad SE field production in ERQ, Egypt.
  • Signed US$60 million debt facility with Arab bank against the security of its share in Yemen Block 5 license.

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

“The third quarter of 2013 exhibited a significant year-on-year increase in revenue and production. The production flows from the El Salmiya 2 well in Abu Sennan, Egypt were very encouraging with reserve adds to come from the Kharita Formation. As we close the third quarter, we look forward to yet another strong operational performance for the coming period.”

 Q3 revenue and daily average working interest production

 

Q3 2013

Q3 2012

Change

Q3 2013

Q2 2013

Change

Revenue* (US$ million)

 

82.2

 

57.8

 

42.2%

 

82.2

 

77.6

 

5.9%

Daily average working interest production average (boepd)

 

24,694

 

17,520

 

40.9%

 

24, 694

 

23,221

 

6.3%

* Revenue reported is sales less profit petroleum and is based on management accounts which are unaudited.

Q3 production

 

Daily average working interest production (boepd)

Country of operations    

Q3 2013

Q3 2012

Egypt

16,760

12,848

Yemen

4,005

515

Oman

2,538

3,048

Russia

736

881

Ukraine

656

228

Total

24,695

17,520

On the financial front, Kuwait Energy had drawn US$104.5 million from its reserve based lending facility of up to US$165 million by the end of Q3 2013, with the International Finance Corporation and Deutsche Bank, which is in place to finance near-term capital activities. The Company’s short term facility with Qatar First Bank of US$15 million was repaid during the Q3 period. The Company signed US$60 million debt facility with Arab bank against its share in Yemen block 5 license and is expected to be repaid in 12 quarterly instalments.

Development and Exploration expenditure during the quarter totalled US$28 million. Development activity focused on drilling 7 wells in Oman, Yemen and Ukraine. A drill test of the Kharita Formation in the El-Salmiya-2 development well in Abu Sennan, Egypt was successfully completed with flows of 3,530 boepd and 4.7 MMscfd of gas.

The ASB-1X exploration well in Abu Sennan, Egypt was undergoing testing of the Late Cretaceous and Jurassic exploration targets at the end of the quarter and has subsequently failed to intersect significant hydrocarbons. During Q3 2013, one exploration well was spud, Shahd SE-7 in ERQ, Egypt and is currently being sidetracked. 

Notes to Editors

  • Kuwait Energy is an independent oil and gas exploration and production company operating in the Middle East;
  • Kuwait Energy has been profitable since inception in 2005, and currently operates in Egypt, Iraq, Yemen, Oman, Ukraine, Latvia, Russia and Pakistan.
  • Kuwait Energy’s working interest proven and probable reserves at year end 2012 were 221.6 million barrels of oil equivalent and its current production has reached approximately 25,800 barrels of oil equivalent per day.

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

Or contact: Besma Al-Qassar, Mobile: +965-97241452, Email: besma.alqassar@kec.com.kw


Back to News