BMB Munai Completes 3D Seismic Interpretation

BMB Munai said on Tuesday that it has completed its 3D seismic study interpretation of the company's extended license territory in Western Kazakhstan.

The interpretation, performed by Oslo-based PGS-GIS, reportedly confirms the presence of six perspective structures in Triassic formations and three perspective structures in Jurassic formations in the territory.

"The results of the 3D seismic interpretation surpassed our preliminary estimates and will guide our exploration activities in the coming year," said Gamal Kulumbetov, BMB's chief operating officer. "The PGS-GIS interpretation has also confirmed three Jurassic formations on the ADE block. Our Jurassic formations have a structure similar to adjacent oil fields, producing from Jurassic formations in Northwestern Zhetybai."

Chapman Petroleum Engineering, a Calgary-based consultant that evaluated the study results, estimates that the extended territory contains a total of 207.6 million barrels of oil equivalent (BOE). The resource evaluation converts gas to BOE at a ratio of 6 mscf gas/1 bbl oil.

BMB states that the Chapman resource evaluation assigns the total prospective resources as follows:

  • Triassic formations of 153 million barrels of oil
  • Jurassic formations of 25.8 million barrels of oil (on both ADE block and extended territory)
  • 28.8 million BOE for the overall gas reserves.

"The evaluation report designates these new discoveries as 'resources' rather than 'reserves,'" explained Kulumbetov. "Under applicable reserve reporting rules a structure must be penetrated by a wellbore before any evaluations may designate either proved, probable, or possible reserves with required certainty in any structure on the territory."

Previously, BMB announced that it is drilling its first well in the Kariman structure on the extended license territory. Kulumbetov expects the drilling to conclude within the next month. Afterward, the company will complete and begin testing of each interval of the well.

"We are also scheduled to drill one well in the Borly structure and one well on the Yessen structure," added Kulumbetov. "We expect that success in any of these wells will further increase our reportable reserves."