Arawak Energy Corporation reported record production results for 2007 and that the exploration and appraisal drilling campaign in 2007 in Kazakhstan produced very sound results, with a success rate of 72%. In 2007, production in Kazakhstan totalled 2,152,925 barrels, up 39% from the prior year, while in Russia production (net to Arawak) totalled 1,563,089 barrels, a 17% increase over 2006.
At Besbolek, 18 wells were drilled with 13 completed successfully. Highlights of the drilling campaign include the discovery of the South Besbolek field, first encountered by well 50 (initially reported in July 2007), which was followed up by three further successful appraisal wells.
At Akzhar, 19 wells were drilled with 14 completed successfully. Here, a continuous 2-rig drilling program in the second half of the year has resulted in confirmation of several previously untested linear fault blocks in the Akzhar South wing. Drilling to date has proven oil in the Aptian, Barremanian and Jurassic sands with productive capacities in the 200 bopd range.
As a result of the 2007 discoveries, the Company is confident that it has added significantly to its Kazakhstan reserve base and expects that this will be reflected in the year end reserves updates.