Singapore - KrisEnergy Ltd. ('KrisEnergy' or the 'Company', and together with its subsidiaries, the 'Group'), an independent upstream oil and gas company, wishes to provide all stakeholders an update regarding the development and production performance of the KrisEnergy operated Apsara oil field in Block A, offshore Cambodia and the implications on the Company's current restructuring exercise ('Restructuring Exercise').
Operational and financial update
As at 30 March 2021, the gross production rate at the Apsara field was 2,493 barrels of oil per day ('bopd') and the average gross production rate for the field for the 23 February 2021 to 30 March 2021 period was 2,883 bopd.
The Apsara oil field commenced production from a single well, A-01D, on 28 December 2020. Four additional wells were brought on stream in the following sequence: A-04D on 30 January 2021; A-06D on 5 February 2021; A-05D on 14 February 2021 and A-03D ST on 22 February 2021.
As previously stated, the Apsara Mini Phase 1A development is an initial small-scale project in order to observe and appraise reservoir performance in the previously unproduced Khmer Basin and collect vital production and subsurface data to determine the long-term potential and value of the Apsara area in Block A.
To date, the highest production rate achieved at the Apsara field was 3,534 bopd on 27 March 2021. Based on production rates and pressure behaviour for individual well performance in the first 36 days since all five wells went online, the Company's preliminary analysis indicates that the reservoirs encountered in the five development wells appear less productive and continuous in nature than expected compared with the results from the original appraisal wells. Work is ongoing to evaluate the results and to formulate future plans.
Consequently, the pre-development forecast of peak production of 7,500 bopd will not be achievable for Apsara Mini Phase 1A. In line with lower production rates, preliminary observations also indicate that the ultimate recovery from the five development wells is likely to be significantly lower than predevelopment expectations as the limited continuity of the reservoirs encountered will decrease the original oil-in-place ('OOIP') estimates associated with the producing wells.
The pre-development forecasts for peak production rate and ultimate recovery were derived from reservoir simulations that were based on a static model developed from geological, geophysical and petrophysical data gathered from studies, seismic interpretation, well logs and rock samples, and a dynamic model for flow and production that made use of productivity data from previously drilled appraisal well flow tests. This approach is in line with standard practice within the industry. Three of the current development wells are twinned, meaning effectively re-drills of existing appraisal wells. Actual production over an extended period from all five wells (23 February to 30 March 2021) has provided sustained production data and has indicated evidence of characteristics for smaller reservoirs with limited continuity, which are also less productive compared with the appraisal flow tests.
The Company continues to review all data to test its internal assessments. A third-party petroleum engineering consultant, Netherland, Sewell & Associates, Inc. ('NSAI'), will be independently assessing the ultimate recovery from the current five development wells. NSAI's initial review is expected to conclude in April 2021.
Contact:
Tanya Pang
Email: Tanya.pang@krisenergy.com
About KrisEnergy
KrisEnergy Ltd. is an independent upstream company focused on the exploration for and the development and production of oil and gas in Southeast Asia. The Company holds working interests in three producing oil and/or gas fields, one each in the Gulf of Thailand and offshore Cambodia, and one onshore Bangladesh. It also participates in five blocks in various stages of the E&P lifecycle in Indonesia and Thailand. KrisEnergy operates six of the contract areas. All notices pertaining to the ongoing restructuring process are available on the Restructuring Information Centre https://www.krisenergy.com/Investors/restructuring-information-centre.
KRISENERGY LTD. 
