Reach Energy reports that its exploration well, North Kariman-3 ('NK-3'), located in the North Kariman field in the onshore Emir Oil Concession Block in Kazakhstan, has yielded positive results during the initial testing phase. NK-3, which was spudded in early February this year, is the first of 6 wells committed under the current Exploration Contract with the Ministry of Energy, Kazakhstan.
The well penetrated the Mid-Triassic carbonate reservoirs, with a total True Vertical Depth Subsea ('TVDSS') of 4,140.66 metres. Moving forward, the Company is now proceeding to apply for a test production license to further ascertain the commercial viability of this well. Two shallower intervals will be perforated in the future once the test production of the aforementioned interval is completed. The Company expects an increase in value of the well in terms of commerciality and contribution to overall reserves and production if the well yields positive results.
"We are happy to announce another discovery after Yessen-3. This development further highlights the vast exploration upsides that the Emir-Oil Concession Block has. Not only that, we have also discovered that reservoir pressure from the NK-3 well was determined to be relatively high as compared to surrounding wells. This suggests that NK-3 would be a highly productive well once we commence production," said Ir. Shahul Hamid bin Mohd Ismail, Chief Executive Officer of Reach Energy Berhad.
He added, "We are reaping the benefits of strategic planning of exploration wells, as we have prioritised high ‘chance of success’ wells that can be swiftly linked into our existing production network and contribute to our revenue stream in the near term. The NK-3 well certainly fit the bill, as its relatively close proximity to the Kariman field would allow for a seamless integration into commercial production once we obtain the Production License for the North Kariman field. This process is ongoing and proceeding as planned, as we expect to obtain the North Kariman Production License in 2019."
Currently, Emir-Oil’s 2P reserves stand at 81 million barrels of oil equivalent ('mmboe') which is subject to an update early next year by its reserves auditor, Gaffney, Cline and Associates ('GCA').