KUALA LUMPUR (Oct 8): Reach Energy Bhd has drilled its first exploration well on its Emir-Oil asset in the Kariman field, Kazakhstan on Oct 6.
The well is expected to confirm the larger extent of the hydrocarbon resource being exploited in the Kariman structure.
"This exploration well will also augment the geological understanding of the prolific trend and support further exploration efforts," said Reach in a filing with Bursa Malaysia today.
According to Reach, the expected success of this exploration well would increase the group’s 2P (proved and probable) reserves by "a significant amount".
"One specific target is to confirm the maximum depth of the oil accumulation thus reducing uncertainty in resource calculations," it said.
The target total depth of the well is 3,937m. The total drilling duration is expected to be 120 days.
"Our advanced drilling programme will be undertaken by a mix of local and international reputable service providers such as Sinopec, AsiaPetroService, Drill-Lab Kazakhstan and KazPromGeofizika," said Reach.
Reach shares closed five sen or 10.53% lower at 42 sen today, giving it a market capitalisation of RM543.08 million.