(MENAFN - Kuwait News Agency (KUNA)) Kuwait Energy has posted USD 59.5 in revenues for the third quarter of 2012, up 24.2 percent year-on-year and 12.9 percent quarter-on-quarter.
"I am delighted to announce yet another special quarterly performance as we were able to register an increase in revenues, operating profits and production," Kuwait Energy Chief Executive Officer Sara Akbar said in a press statement Wednesday.
"Q3 also witnessed the commencement of production from the Abu Sennan concession in Egypt following last year's four discoveries in the area, which represents a great milestone for the Company," she added. The company attributed the quarter's year-on-year increases in revenue, operating profits and production to exploration successes of Petroshahd Company (previously East Ras Qattara concession), Egypt, development of Burg El Arab, Egypt, the start of production in Abu Sennan, Egypt and higher production from the Luzskoye field, Russia. The Company's Q3 production was up 29.1 percent year-on-year and 3.6 percent quarter-on-quarter to 17,520 boepd (Q3 2011: 13,568 boepd).
Operationally, the Company spudded one exploration well during the quarter, well ASA1-X in the Abu Sennan concession, Egypt.
This well was drilling at the end of the quarter. Drilling on well West-Ahmed in Area A, Egypt, which had spud during Q2 2012, was completed successfully in Q3 2012 and produced at an initial gross rate of 1,240 bopd.
Up to 13 development wells were also drilled during the quarter. This activity took place mainly in Oman (nine wells), with the remainder in Egypt, Yemen and Russia.
Kuwait Energy regained title to its 25 percent working interest in JAA 429, Ukraine, after final ruling by the Ukraine Supreme Commercial Court that restored the JAA 429 agreement to resume development operations of the Bilske and Kulychykhynske gas-condensate fields located in the Poltava region.
The Company also continued its CSR activities during the quarter, partnering with the Kuwait Oasis Team in the country's largest voluntary environmental initiative, the "Kuwait Green Wall". The Company also sponsored an Iraq British Business Council conference in Baghdad with the aim of connecting Iraqi businessmen with international stakeholders.
Financially, the Company signed a Strategic Investment Agreement during the quarter with Qatar First Investment Bank, a leading regional investor, to finance its near-term development and growth plans. The agreement is for a USD 150 million convertible debt facility with mandatory conversion into ordinary shares of Kuwait Energy on an IPO, of which USD 25 million was drawn down at the end of Q3.
The Company also signed a reserve based lending facility of up to USD 165 million from the International Finance Corporation and Deutsche Bank, to finance its near-term capital activities and is currently working towards financial close of this facility.
Kuwait Energy is one of the few independent oil and gas exploration and production companies operating in the Middle East. It has been profitable since inception in 2005, and currently operates in Egypt, Iraq, Yemen, Oman, Ukraine, Latvia, Russia and Pakistan, Kuwait Energy's working interest proven and probable reserves at year end 2011 were 235.3 million barrels of oil equivalent and its current production has reached approximately 17,500 barrels of oil equivalent per day.