This article first appeared in The Edge Financial Daily on January 22, 2020

KUALA LUMPUR: Reach Energy Bhd’s subsidiary Emir-Oil LLP has obtained a three-year extension of its exploration contract in Kazakhstan — Exploration Contract 482 which was supposed to end on Jan 9 this year — to Dec 31, 2022.

Reach Energy controls a 60% stake in Emir-Oil via Palaeontol BV. Emir-Oil holds the entire 100% working interest in the 850.3 sq km Emir-Oil Concession Block in Kazakhstan.

“This extension consists of eight exploration projects that cover the entire exploration acreage, and Emir-Oil has strategically selected three low-risk exploration well targets as part of Emir-Oil’s commitment to this extension,” Reach Energy said in a stock exchange filing yesterday. The exploration contract area spans 791.01 sq km.

“In addition, Emir-Oil plans to conduct further seismic reinterpretation that would improve geological understanding of the acreage and further unearth additional prospects of discovery. The company is confident that this extension represents a great opportunity to increase the reserves of the company within the next three years,” it added.

It also said Emir-Oil had obtained production contracts for the North Kariman and Yessen fields there for respective periods of 16 and 25 years, starting Jan 1 this year.

“This achievement is significant to Emir-Oil’s Master Development Plan to integrate the Kariman and North Kariman fields as one large hydrocarbon-bearing structure in the near future. Yessen has also shown good productivity for its wells in past well tests, and the company plans to exploit this new commercial field with best-in-class reservoir management practices,” Reach Energy said.

On a related matter, Reach Energy said Kazakhstan’s ministry of energy had signed the Amendments with Work Programmes spanning the 2019-2021 period.

It said Emir-Oil had successfully defended and obtained approval for Analysis of Development (AoD) documents for the Aksaz, Dolinnoe and Kariman fields.

“These AoDs are key technical regulatory documents that underline the respective fields’ development plan and production targets over a three-year period. This is a key development as Emir-Oil has included plans to start gas and water injection (pilot), specifically at the Kariman field that underlines our commitment to improving production and hydrocarbon recovery from this field,” it added.