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| KrisEnergy employees attach a rock bit to a drilling shaft at an oil platform. Randolph Yost |
Matthieu de Gaudemar, The Phnom Penh Post
Fri, 24 February 2017
Singapore-listed KrisEnergy Ltd is considering selling or farming out a stake in its Cambodia Block A offshore oilfield to ease its debt burden, according to the company’s 2016 year-end report.
The oil and gas company posted $237.1 million in net losses for the 2016 fiscal year due to non-cash charges and higher financial costs, it said in a document released yesterday. This was despite net revenue more than doubling over the same period, increasing by 137.3 percent to $142.8 million.
The firm said that it would consider selling its stake or farm out the development of the G10/48 Wassana oil field in Thailand as well as the Cambodia Block A field to increase cash flow.
“In line with appropriate risk management and prudent oil field practice, a farm-out or sales process to reduce our working interest in G10/48 and Cambodia Block A is appropriate, subject to obtaining a fair price for such farm-out or sales transaction,” it said.
“These developments will be core to our strategy in order to generate free cash flow from operations and provide for the repayment of our debt obligations beginning in 2022.”
Block A contains Cambodia’s only confirmed oil deposit and has been estimated to hold 700 million barrels of oil as well as 3 trillion to 5 trillion cubic feet of natural gas. It was previously reported that production from the block could reach 10,000 barrels per day.
KrisEnergy raised its stake in the 4,709-square-kilometre offshore block to 95 percent last October following a dispute with the other shareholders regarding revenue-sharing.
The year-end report notes that the company’s increased stake offset overall losses by increasing the value of its assets.
“The group’s unaudited net loss was partially mitigated by other income amounting to $100.2 million which was primarily driven by gains recognised during FY2016 for the transfer of working interests in relation to Cambodia Block A amounting to $81.0 million,” it said.
From KI Media - Khmer Intelligence
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