Page 11 - AsianOil Week 13 2021

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KrisEnergy’s future in doubt after

disappointing Cambodian output

PROJECTS & SINGAPOREAN independent KrisEnergy has
COMPANIES revealed that disappointing production results
from its Apsara oilfield offshore Cambodia could
sink the company.
KrisEnergy said on March 31 that production
from the field, which is located in Block A, aver-
aged 2,883 barrels per day (bpd) of oil between
February 23 and March 30.
While the field’s first well – A-01D – came on
stream on December 28, 2020, the Apsara Mini
Phase 1A project’s fifth and final well – A-03D ST
– entered production on February 22. The five-
well project is designed to observe and appraise development wells’ ultimate recovery and will
reservoir performance in the previously unpro- deliver its review this month.
duced Khmer Basin. Apsara’s weaker-than-expected perfor-
KrisEnergy, however, said preliminary anal- mance has cast some doubts over the com-
ysis of the production data indicated that the pany’s ability to complete its restructuring
project’s reservoirs were “less productive and exercise successfully.
continuous in nature than expected compared
with the results from the original appraisal wells”. Viability in question
While KrisEnergy continues to evaluate KrisEnergy said its restructuring efforts had
Apsara Mini Phase 1A’s results, the developer been designed around Apsara Mini Phase 1A’s
said its pre-development forecast of 7,500 bpd success, with the project’s cashflow expected to
of peak production was no longer achievable. fund the company’s ongoing operations.
Indeed, since all five wells were brought on The debt-laden company has been engaged in
stream the project has only managed a produc- a restructuring campaign since late 2019, driv-
tion high of 3,534 bpd on March 27. ing the company to agree to sell its entire 100%
The company said: “In line with lower pro- working interest in Block 115/09 offshore Viet-
duction rates, preliminary observations also nam as well as its 30% stake in Indonesia’s Anda-
indicate that the ultimate recovery from the five man II deepwater production-sharing contract
development wells is likely to be significantly (PSC).
lower than pre-development expectations, as the KrisEnergy said: “Given the significantly
limited continuity of the reservoirs encountered lower estimated ultimate recovery and cashflow
will decrease the original oil-in-place (OOIP) from the Apsara Mini Phase 1A development,
estimates associated with the producing wells.” material uncertainty exists over the group’s abil-
Independent engineering consultancy ity to complete the Restructuring Exercise and to
Netherland, Sewell & Associates, Inc. continue as a going concern.”
(NSAI) is independently assessing the five A revolving credit facility with DBS Bank will
mature on June 30 and the company said that a
further extension of the maturity date to June
30, 2024 was subject to satisfying certain condi-
tions, including the successful completion of the
restructuring exercise.
As such, KrisEnergy said it would assess
the viability of its restructuring, while adding
that it was delaying its planned extraordinary
general meeting in which shareholders were
due to approve resolutions relating to the
restructuring.
News about Apsara’s production problems
came on the same day the company advised
it had finalised the sale of its interest in the
7,382-square km Block 115/09. The farm-out,
to an unnamed “major international oil and
gas company”, was first announced in Febru-
ary 2020. KrisEnergy said the transfer had been
completed after Vietnamese authorities had
given their approval.™

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