Reach Energy’s proposed qualifying asset yields positive results

KUALA LUMPUR: Reach Energy Bhd’s proposed oilfield acquisition from MIE Holdings Corp (MIE) in the Aidai Block, southwestern region of Kazakhstan, has yielded positive results during an initial testing phase of the first exploration well.

The announcement was made by MIE on the Hong Kong Exchange on Wednesday.

“The block is one of the drillable prospects forming part of the 850.3 km2 Emir-Oil Contract Block in the Mangistau Oblast in the southwestern region of Kazakhstan in connection with the companys proposed qualifying acquisition,” MIE said in a statement on Thursday.

It said based on this recent discovery and MIE’s preliminary estimates, the Aidai Block would have gas resources in place approximating 285 billion cu ft and oil resources in place approximately of 19.7 million barrels, bringing the total hydrocarbon resources in place for the Aidai Block to 67 million barrels of oil equivalent, with further upside potential.

Reach Energy managing director Shahul Hamid Mohd Ismail said the positive results from the initial testing phase of the exploration well in Aidai Block were certainly good news for the company.

“In preparation for the field development, Emir-Oil is currently studying the use of large-scale fracturing and horizontal well technology to increase well productivity,” he said. - Bernama