Reach Energy to raise oil production up to 5,000 barrels by year-end

Reach Energy Bhd managing director Shahul Hamid Mohd Ismail.

KUALA LUMPUR: Oil and gas exploration and production company Reach Energy Bhd intends to increase oil production at its Emir-Oil concession block to between 4,000 and 5,000 barrels per day ((bpd) by the end of the year.

The Emir-Oil concession block has 14 producing wells.

In 2016, Emir-Oil produced an average 3,301 bpd and 5.6 million standard cu ft of gas per day.

Reach Energy said it will continue to play a proactive role in developing the Emir-Oil fields, especially in the optimisation of near-term production growth through field development and application of new technologies. 

Reach Energy CEO Shahul Hamid said after the the company's AGM on Thursday that the company will continue to maintain a robust balance sheet while maximising its existing operational efficiency to establish a solid foundation for strong cash flow.

"We anticipate that oil price dynamics will continue to remain uncertain and volatile. 

"However, as most projections, including the World Bank's, indicate that oil price is on the path to recovery, we believe our investment in Kazakhstan's oil and gas industry will likely increase in the near future, following the commencement of production at Kashagan field and expansions at Tengiz and Karachaganak fields," he said.