KUWAIT, Feb 20 (KUNA) -- The Kuwait Energy has posted USD 59 million in revenues for the fourth quarter of 2012, up 29.4 percent year-on-year and 3.2 percent quarter-on-quarter.
"I am pleased to announce another quarter of year-on-year increases in revenue, profits and production," Kuwait Energy Chief Executive Officer Sara Akbar said in a press statement Wednesday.
"The quarter also saw us make strategic progress in Afghanistan and extend our access to capital via a new reserve-based lending facility. These are very exciting times for the company and I look forward to the future with confidence," she added.
The Company's Q4 production was up 16.1 percent to year-on-year to 17,442 boepd.
"Kuwait Energy participated successfully in the second Afghanistan Bid Round for hydrocarbon exploration licenses and submitted bids for Block I (Sanduqli) and Block IV (Mazar-i-Sharif) in a consortium together with Dragon Oil (International) Limited (DOIL), Turkiye Petrolleri Anonim Ortakligi (TPAO) and Ghazanfar Investment Limited. Both blocks are located in the Balkh province of Northern Afghanistan, at the border with Uzbekistan.
"Subsequently, the consortium has been selected by the Government of Afghanistan to negotiate EPSCs for both Blocks with negotiations set to be concluded within the first half of 2013. Kuwait Energy is to operate the Sanduqli block jointly with DOIL, while the Mazar-i-Sharif block will be operated by TPAO. Kuwait Energy will take a 30-percent working interest in the operated block and 25 percent in the non-operated block," added the statement.
Financially, the Company achieved financial close during the quarter (19 December) on a new reserve based lending facility of up to USD 165million with the International Finance Corporation and Deutsche Bank.
The debt facility is to finance near-term capital activities although the first draw down of USD60 million has been used to repay the previous IFC reserve based lending facility.
At the end of the quarter, the Company had also drawn down USD 50 million of its facility with Abraaj Capital and USD 33 million with Qatar First Investment Bank to finance near-term development and growth plans. Both agreements are for a USD150 million convertible debt facility with mandatory conversion into ordinary shares of Kuwait Energy in the event of an IPO.
Operationally, no recordable incidents took place during the quarter in any of Kuwait Energy's operated areas whilst the Company's Cairo office and operations at Area A, Egypt were successfully certified with OHSAS18001 and 14001 environmental management standards.
In terms of drilling activity, 13 development wells were drilled, at a cost of USD 21.9 million, primarily in Oman. Two exploration wells were also drilled and both will be carried over into 2013.
Kuwait Energy is an independent oil and gas exploration and production companies operating in the Middle East. It has been profitable since inception in 2005, and currently operates in Egypt, Iraq, Yemen, Oman, Ukraine, Latvia, Russia and Pakistan; and Kuwait Energy's working interest proven and probable reserves at year end 2011 were 235.3 million barrels of oil equivalent and its current production has reached approximately 22,770 barrels of oil equivalent per day. (end) kt.ibi KUNA 201846 Feb 13NNNN