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KrisEnergy buoyed by doubing of production and 48% reserves increase

Published: 07:58 04 Jan 2016 GMT

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A platform for growth: Reserves were boosted by almost 50%.

Shares in KrisEnergy (SGX:SK3) were in demand after it gave bullish production update and logged a 48% increase in its reserves.

The company, which has stakes in fields in the Gulf of Thailand, Indonesia and one onshore in Bangladesh, said its share of production was just under 20,000 barrels of oil equivalent a day as at January 1.

To put that in context, the average rate last year was 9,698 barrels, which in turn was up from 7,612 barrels in 2014.

In the same brief announcement, Kris also gave an update on the scale of its proved and probable (2P) reserves following a review by independent consultants Netherland, Sewell & Associates.

It revealed the company’s oil and gas fields are host to 105mln barrels of oil equivalent, compared with 71mln barrels before the study was completed.

The update estimate included a contribution from the Bangora gas field in Block 9 in Bangladesh and the G10/48 licence in Thailand.

It also charted the impact of converting of best estimate contingent resources to 2P reserves for the Block A Aceh gas development onshore Sumatra in Indonesia and in the G6/48 contract area (also in Thailand).

The stock was trading 5% higher on the Singapore exchange at 17.5 cents.

Oil price is the elephant in the room – KrisEnergy’s Lorentz

Richard Lorentz, director of business development at Kris Energy (SGX:SK3), says 2016 will be a ‘lean and mean year’ as the upstream producer shaves capex spending to the lowest in the company’s six-year history. With oil prices at current levels the company won’t have any exploration...

on 25/2/16