Mirach Finalizing Plans for Exploration Drilling at Cambodia's Block D

Mirach Energy Ltd. reported Tuesday that the company is currently finalizing plans to conduct exploration drilling at Block D in Cambodia following the approval by the Cambodians Ministry of Mines and Energy (MME) to extend the exploration period for the permit till December 2018.

The firm said in the press release that it is "in the midst of finalizing the details on the exploration drilling project and drilling rigs commissioning arrangements with various partners."

However, Mirach noted that the move has been met with some challenges from fourth quarter 2015, including financial arrangements with MME, which are still pending a final decision.

The company's management remains keen to discuss with third parties to work together so as to advance the rights and obligations associated with the Petroleum Agreement that had been signed with Royal Government of Cambodia on March 27, 2006. Upon MME's approval of the proposed financial arrangements, Mirach will proceed to the exploration stage, with its joint venture partners.

Elsewhere at Indonesia's Kampung Minyak (KM) oil field in South Sumatra, Mirach -- after stabilizing operations at the field -- is focused on reopening old wells and well servicing.

"The team did not plan to drill new wells given the current oil price environment. Whilst the previous hydro-slotting perforation trials did not offer a good and/or long term results; it was encouraging on the other hand as it indicated the areas where crude oil are trapped and where more efforts may be required for extraction,"

In 2015, Mirach reopened 38 old wells, including 7 wells under the Pilot Water Flood program, which is in its final phase and set for commissioning during 2Q 2016, after which the program shall be put on an evaluation period of 6 months.