Kuala Lumpur, 4 March 2019 – Ping Petroleum Limited (“Ping”), an associate company of Dagang NeXchange Berhad (“DNeX”), has announced that it has recently signed a rig contract with Stena Spey Services Limited to drill two firm wells this year.
The first well is the Guillemot A GUA P1 side-track, which can unlock about 1.7 million barrels of oil from its current net proved and probable (“2P”) oil reserves. To be executed by Ping’s jointly-controlled operating company Anasuria Operating Company Limited (“AOC”), this is part of an ongoing capacity enhancement programme to maximise economic recovery of the Anasuria Cluster fields.
Drilling of the side-track is scheduled to start by the first half of this year with production expected upon completion of the project. AOC is equally owned by Ping’s wholly-owned subsidiary Ping Petroleum UK Limited (“PPUK”) and Anasuria Hibiscus UK Limited (“AHUK”).
The second well is a development well in Avalon field and will be executed by PPUK as the operator of the field. This is part of the development programme to develop and bring production online to the Avalon field.
According to Datuk Samsul Husin, Executive Deputy Chairman of DNeX, both projects support Ping’s strategy to increase production in the Anasuria Cluster and monetisation of the Avalon field through innovative small field development.
“We are pleased with the progress, which strengthens planned future development projects and Ping’s commitment to increase production and maximise the economic value of its assets,” he said.
The Anasuria Cluster consists of the Teal, Teal South, Guillemot and Cook fields, which produce to the Anasuria FPSO facility. The Anasuria Cluster is located offshore in the United Kingdom sector of North Sea. Ping Petroleum UK holds 50 per cent joint-operating interests in the P013 licence consisting of the Teal, Teal South and Guillemot A fields as well as 19.3 per cent non-operating interest in the P185 licence consisting of the Cook field.
In August last year, Ping announced an increase in the oil and gas reserves in its portfolio based on the latest reserves update undertaken by a third party. Total 2P oil reserves stands at 27 million barrels equivalent (“MMboe”) or about 20 per cent increase as compared to 23 MMboe recorded during acquisition in 2015.