KrisEnergy, an independent upstream oil and gas company, has announced unaudited results for the year ended 31 December 2014 ('FY2014') and provides an operational update together with a review of its reserves and resources.
KrisEnergy made good progress towards strategic and operational goals in 2014. Oil and gas production more than doubled as did the Company’s year-end working interest 2P reserves as a result of advances in the KrisEnergy operated Wassana oil and Lengo gas development projects.
Total working interest 2P reserves grew 120% to 71 million barrels of oil equivalent ('mmboe') as at 31 December 2014 from 32.2 mmboe a year earlier. The Wassana oil development in G10/48 in the Gulf of Thailand contributed 13.6 mmboe to the increase. KrisEnergy took over operatorship of G10/48 in May 2014 and has secured all necessary services and equipment for the development, which comprises up to 15 wells and a mobile offshore production unit ('MOPU') producing to a floating storage and offloading ('FSO') vessel. First oil is expected in the second half of 2015.
The Lengo gas accumulation in the Bulu production sharing contract ('PSC'), offshore East Java in Indonesia, bolstered working interest 2P reserves by 25.4 mmboe. The field’s plan of development (“POD”) was approved by the Indonesian authorities in late 2014. First gas is expected to flow 24 months after the joint-venture partners declare final investment decision ('FID') for the project.
Working interest 2C resources increased 154% to almost 137 mmboe as a result of the acquisition of a 41.6666% working interest in Block A Aceh onshore Sumatra, Indonesia. Block A Aceh contains the Alur Rambong, Alur Siwah and Julu Rayeu gas accumulations with an approved POD as well as the Matang gas discovery, which requires appraisal.
Keith Cameron, Chief Executive Officer, commented: 'This is our fourth consecutive year of growth in reserves and resources. The successful reclassification of resources to reserves for Wassana and Lengo demonstrates our progress in these projects towards first oil and gas. Pre-planning and preparation enabled us to quickly secure all major components for Wassana and we declared FID just five weeks after taking over operatorship of G10/48. For Lengo, we are now working on front-end engineering studies and we are in discussions to finalise long-term gas offtake agreements. This is particularly pleasing with the backdrop of our production more than doubling in 2014.'
