Quarterly Report For The Financial Period Ended 30 September 2018
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Unaudited Condensed Consolidated Statement Of Comprehensive Income
For The Financial Period 1 July 2018 To 30 September 2018
Unaudited Condensed Statement Of Financial Position As At 30 September 2018
Unaudited Condensed Statement Of Cash Flows For The Financial Period Ended 30 September 2018
Reach Energy Berhad (REB) is committed to embedding best-practices in oilfield management in its maiden asset which is Emir Oil LLP (EO). Key activities have been consolidated, strengthened and streamlined to significantly improve efficiency and productivity in EO asset.
Trial Production license for the North Kariman Field has been approved and the Trial Production Period of 18 months commenced on 1 October 2018, allowing EO to produce the prolific North Kariman wells. This is expected to increase current oil production substantially. This process is a prelude to obtaining a full Production License for the North Kariman Field in 2019.
Exploration drilling of the North Kariman 3 well (NK-3) has been safely and successfully completed. The well is currently undergoing well test analyses to evaluate its degree of productivity and potential contribution to reserves. This well is considered an exploration well with a high chance of success (CoS), and preliminary evaluations are encouraging. In addition, exploration drilling of the Kariman 16 well (K-16) has recently commenced and is progressing as planned. Similar in risk profile to the completed NK-3 well, the K-16 well is deemed with a high CoS considering it is relatively in close proximity to the current Kariman Field area. The third exploration well for 2018 is scheduled for spudding in late December. The exploration success in these wells is expected to have significant positive effect on EO’s Reserves base, in particular the 2P Reserves.
The decision to switch to an alternative oil treatment and terminal facility in Ansagan has been beneficial, as it has improved oil distribution logistics in both technical and commercial aspects. This more modern facility has solidified EO’s standard operating procedures regarding oil handling and accounting, and its close proximity to government-owned pipeline network allows for optimization of logistics costs.
Looking ahead, 2019 represents an exciting year for REB, as EO is planning a more aggressive development program, consisting of new development wells and the commissioning of the Central Processing Facility (CPF). These are key elements in EO’s Master Development Plan to achieve higher production and reserves base within the next few years. The CPF will not only increase and upgrade our oil handling capacity and facilities significantly, but it will also enable centralising all our production operations activities.
We are in discussion with Gas Processing Company LLP (GPC) in Kazakhstanto evaluate an opportunity to participate in a gas processing and distribution business in the Aktobe Region. Such a venture would also help us in our future efforts to monetise the gas reserves in Emir Oil asset.