Page 11 - FSUOGMWeek472019

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agreement’s (PSA) terms, which officials esti- mated could have meant an extra $415mn in government revenue by 2037 based on a Brent crude price of $80 per barrel.
Shell and Eni jointly operate the field, each owing a 29.25% stake. State-owned KazMu- nayGas owns 10%, while Chevron and Lukoil hold 18% and 13.5% respectively. The field had a reported average production of 231,000 barrels per day (bpd) of liquids and 925mn cubic feet
(26.2mn cubic metres) per day of natural gas in 2018.
Bozumbayev revealed in August that Kara- chaganak was the country’s third largest oil project in the first seven months of the year, delivering 6.9mn tonnes (238,500 bpd) of liq- uids. This was behind Tengiz’s 17.5mn tonnes (605,000 bpd) and Kashagan’s 7.2mn tonnes (249,000 bpd).™
Regal eyes Ukrainian production licences
UKRAINE
UK-LISTED developer Regal Petroleum intends to buy a 100% stake in Ukrnaftinvest (UNI), which owns two production licences in south-western Ukraine.
UNI, which is 50:50 owned by Lidiia Chernysh and Leonid Kozachenko’s Bolaso Investments, operates the Belolisky and Alibeysk-Trapivska licences.
Regal said on November 26 that it had signed a non-binding memorandum of understanding (MoU) to acquire 100% of UNI for up to $40mn, of which $10mn was payable upon the deal’s completion. The final figure will depend upon an independent assessment of the licences’ proven (1P) reserves, but Regal said it would equal 25% of the net present value of the reserves – using a 10% discount rate – capped at $30mn.
Regal added that it would devise a work programme in conjunction with Chernysh and Bolaso Investments to appraise the licences. It noted that this would include up to three wells, with the future of the second and third holes hinging upon the results of each preceding hole.
The acquisition is subject to Regal complet- ing its due diligence as well as “certain conditions
precedent and the parties entering into detailed transaction documentation”.
Regal noted that the goal was for UNI to apply for licence extensions, given that the contracts were granted in 2004 for 20 years. It said the two fields were prospective for oil and gas and that a total of 24 wells had been drilled across them both since exploration began in the 1980s. Regal’s own review of the available field data suggests both licences hold combined initial in place volumes of around 675mn barrels of oil equivalent (boe).
UNI’s audited net assets as of December 31, 2018 amounted to UAH178.9mn ($7.4mn), while its losses after tax reached UAH700,000 ($29,100).
The potential acquisition represents a signif- icant expansion of Regal’s Ukrainian portfolio, which includes the Mekhediviska-Golotvschin- ska (MEX-GOL), Svyrydivske (SV) fields and Vasyschevskoye (VAS) fields.
Regal owns 100% of MEX-GOL and SV, which span a combined 269 square km and are operated as a single development. The developer acquired a 100% stake in the VAS field, which covers 33.2 square km, in July 2016.™
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