KrisEnergy says the estimated ultimate recovery from the five development wells in the Apsara oil development is “likely to be a small fraction” of the pre-development estimates due to significantly lower volume of hydrocarbon-in-place connected to the wells.
The underperformance is also attributed to the geographical complexity resulting in smaller oil accumulations.
Additional contributing factors include pressure depletion being the dominant recovery mechanism with little to no evidence of water support, resulting in a lower recovery factor, as well as lower-than-anticipated well productivity that may be due to potential formation damage in the oil-bearing zones.
SEE:KrisEnergy receives EGM requisition from shareholders questioning restructuring process
KrisEnergy says any remedial actions have “limited potential” to increase well productivity and is not expected to materially improve total oil recovery due to the fixed configuration of the subsurface reservoirs.
The lower production from the Apsara wells will have a “substantial adverse impact” on revenue generated from the Apsara Mini Phase 1A development respite the recovery in benchmark oil prices.
The “disappointing recovery expected” may cause further deterioration towards the company’s financial condition and “its ability to service the Cambodia Block A project financing loan from Kepinvest Singapore Pte. Ltd. and other obligations and expenditure”.
