KrisEnergy Ltd. (KrisEnergy or the Company), an independent upstream oil and gas company, reported Wednesday that it has received approval from the Government of the Kingdom of Thailand to acquire a 30 percent working interest and operatorship of Block G6/48 in the Gulf of Thailand. The completion of the transaction marks KrisEnergy’s first operatorship in the Gulf of Thailand, a core area in the Company’s portfolio.
KrisEnergy signed in March 2013 a farm-out agreement with Pearl Oil (Amata) Ltd, an affiliate of Mubadala Petroleum. Following government approval, Mubadala Petroleum holds 30 percent working interest in G6/48 and Northern Gulf Petroleum Pte Ltd. holds the remaining 40 percent.
Keith Cameron, CEO, commented: “This is an important addition to our portfolio and provides us with our first operated asset in a region where our team has a successful track record in exploration and in the development of oil fields. We will seek to continue to build our position in the Gulf of Thailand, preferably as operator. I would like to thank the Thai authorities for approving the farm-out and look forward to bringing many transactions to the approvals process going forward.”
G6/48 covers 218.5 square miles (566 square kilometers) over the Karawake Basin on the southern margin of the Pattani Basin and the northwest margin of the Malay Basin in water depths of up to 246 feet (75 meters). It lies north of the G10/48 development block and to the south of the B8/32 oil and gas producing area. Directly to the east of G6/48 is the Erawan field, which was the first field to produce hydrocarbons in the Gulf of Thailand in 1981. The block contains the Rossukon oil discovery over which a 104.2 square miles (270 square kilometers) 3D seismic acquisition program was completed in August 2013. KrisEnergy plans an appraisal drilling program to delineate the Rossukon discovery in 2014.
In addition to G6/48, KrisEnergy holds non-operated working interests in the B8/32 and B9A oil and gas producing complex, in G11/48 where the partners are currently developing the Nong Yao oil field, and in G10/48, which contains the Wassana oil development project. Also in the Gulf of Thailand in Cambodian waters, the Company is a partner in Block A, which contains a series of oil discoveries with a plan of development.
Separately, KrisEnergy announced Wednesday that together with Mubadala Petroleum (the operator of G11/48), it has signed a farm-out agreement with Palang Sophon Limited (PSL) for PSL to acquire a 10 percent working interest in the G11/48 development block in the Gulf of Thailand, to become the Thai participant in the contract area.
The farm-out has been approved by the government of the Kingdom of Thailand. KrisEnergy’s working interest in G11/48 has reduced to 22.5 percent from 25 percent and that of Mubadala Petroleum has decreased to 67.5 percent from 75 percent.
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