Kuwait Energy (the “Company”), an independent oil and gas company with assets across the MENA region, today announces an update on its financial and corporate activities during the second quarter of 2014.
Kuwait Energy achieved an average daily working interest production of 23,720 barrels of oil equivalent per day (boepd) and revenue of US$72.3 million for the second quarter of 2014. Kuwait Energy average daily working interest production is 5.6 % higher and its revenue is 7.4% higher than in the previous quarter. Compared to the corresponding period a year ago production and revenue are up (9.0) % and 12.6% respectively.
At the end of the second quarter of 2014, the Company’s outstanding receivables from the Egyptian General Petroleum Corporation (EGPC) were US$124 million as a result of collecting US$70 million in cash during the second quarter. On 9 July, a US$26 million oil cargo was received.
Sara Akbar, Chief Executive Officer of Kuwait Energy, commented: “We are delighted to generate continued value for shareholders via increases in production, revenue and profit, not just over the last quarter but year-on-year also. In line with the Company’s strategy to consolidate its asset portfolio to focus on the MENA region, we have also disposed of our Ukrainian assets.”
Kuwait Energy continues to pursue its strategy of focusing on the MENA region, where it has established a strong presence and an exceptional operational track record. To this effect, the Company is undergoing a rigorous process of rationalizing its portfolio in Eurasia and Pakistan with the intention to exit these geographies. In April 2014, Kuwait Energy finalised the sale of its Ukraine assets with net proceeds of US$5.0 million. The Company is currently in active negotiations regarding the sale of its Russian assets and expects to complete the sale in the third quarter of 2014.
The Company’s main development activities during the second quarter of 2014 included the drilling of 11 development wells (8 in Oman, 2 in Egypt and 1 in Iraq). US$53.5 million in development expenditure was mainly spent on drilling, gas plant facilities and pipelines in Siba, Iraq. Exploration expenditure during the second quarter of 2014 was US$23.0 million, which was primarily spent on exploration drilling in Egypt and Iraq Block 9.
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