Kuwait Energy issues Q2 activity report

Kuwait Energy, one of the fastest growing independent oil and gas exploration and production companies in the Middle East, announces an update on its financial and operational activities during the second quarter. - First half revenue up 35.7% to $119.3 million (H1 2011: $87.9 million) - First half production up 32.4% to 17,138 boepd (H1 2011: 12,944 boepd) - Q2 revenue and production up 15% and 31%, year-on-year, to US$53.5 million and 16,906 boepd, respectively - Q2 2012 production in Egypt up by over 50% compared to Q2 2011 - Kuwait Energy-led consortium awarded an exploration, development and production service contract for “Block 9″ in Basra, during Iraq’s 4th petroleum licensing round. - Signing of Strategic Investment Agreement with Abraaj Capital, to finance the Company’s near-term development and growth plans. Results were underpinned by a 31% increase in daily average production compared to the second quarter of 2011, generated by last year’s significant exploration successes in Egypt and increased production from development activities in Egypt, Russia and Oman.  The Company’s production rate for the quarter was 16,906 barrels of oil equivalent per day (boepd) average working interest. Sara Akbar, Chief Executive Officer of Kuwait Energy, said: “I am very proud to report such excellent financial and operational success again. We continue to see the fruits of the exploration and development successes we’ve made over the last year, especially in Egypt and Russia.  We are also very proud of our most recent license award in Iraq, another milestone for the Company as we continue to focus on growth within our existing operations and in the MENA region.” In May 2012, a Kuwait Energy-led consortium was awarded an exploration, development and production service contract for “block 9″ in Basra, during Iraq’s fourth petroleum licensing round. Kuwait Energy is the operator of the 900 km² block, with a 40% working interest.  The consortium which signed the initial contract with the Iraqi Ministry of Oil and Tender Committee earlier in the month includes the national oil company of Turkey “Turkiye Petrolleri Anonim Ortakligi” (TPAO), and Dragon Oil, an independent international oil and gas exploration, development and production company. TPAO and Dragon Oil each hold a 30% working interest in the block. Q2 operational highlights: In Egypt, development activity continues in wells in Area A, East Ras Qattara (ERQ) and Burg El Arab concessions. Kuwait Energy also received approval to drill the ASA1-X well located in Abu Sennan concession in the Western Desert, and the Mesaha1-X well in Block 6 – Mesaha concession, an oil and gas exploration asset located at the southern frontier of the country. In Oman, 13 development wells were drilled in the Karim Small Fields, 11 of which were completed and started producing at an initial rate ranging between 100 and 250 boepd each. The remaining two wells were still being drilled at the end of Q2 2012. In Russia, two development wells, wells 325 and 326, were drilled in the Luzskoye field. At the end of Q2 2012, well 325 was being tested while drilling continued on well 326. The company also constructed well pads and initiated the processing and interpretation of 3D seismic data in both Luzskoye and Chikshina fields. Kuwaittimes