Following KrisEnergy’s updates on the Apsara oil field development in Block A, offshore Cambodia, Keppel Corporation noted that Netherland, Sewell & Associates (NSAI), a third-party petroleum engineering consultant, will be assessing the ultimate recovery from five development wells in Apsara Mini Phase 1A.
Keppel Corp also noted that “material uncertainty” exists over KrisEnergy’s ability to complete its current restructuring exercise and to continue as a going concern.
The group, together with its financial advisor, who has been providing advice on KrisEnergy’s restructuring exercise, Keppel Corp will “continue to monitor the updates given by KrisEnergy and determine the best course of action for Keppel Corp after NSAI’s independent report is made available in April 2021 and more information is disclosed by KrisEnergy,” says the group on March 31.
KrisEnergy, on March 31, announced that it had a gross production rate of 2,493 barrels of oil per day as at March 30. The average gross production rate for the field from Feb 23 to March 30 was 2,883 barrels of oil per day.
The highest production rate achieved at the Apsara field was 3,534 barrels of oil per day on March 27.
KrisEnergy has revealed that its preliminary analysis indicates that the reservoirs encountered in the five development wells appear less productive and continuous in nature than expected.
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The findings may have implications on the restructuring exercise as the Apsara Mini Phase 1A was expected to provide the cashflow necessary to fund KrisEnergy’s ongoing operations.
“Given the significantly lower estimated ultimate recovery and cashflow from the Apsara Mini Phase 1A development, material uncertainty exists over the group’s ability to complete the restructuring exercise and to continue as a going concern,” reads the statement from KrisEnergy.
KrisEnergy also noted that its revolving credit facility with DBS Bank will mature on June 30. “Further extension of the maturity date to June 30, 2024, is subject to satisfaction of certain conditions precedent including the successful completion of all elements of the restructuring exercise.”
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“The company has obtained an extension of the restructuring completion deadline from March 31, 2021, to April 16, 2021,” it adds.
Shares in Keppel Corp closed 2 cents lower or 0.4% down at $5.32 on March 31.
