Kulczyk Oil Ventures increases interest in Block L, Brunei

Source: Kulczyk Oil Ventures Inc.

Kulczyk Oil Ventures Inc. (WARSAW: KOV) ("Kulczyk Oil", "KOV" or the "Company"), an international upstream oil and gas company, announces that a wholly-owned subsidiary of KOV, Kulczyk Oil Ventures Limited ("KOVL"), has entered in to a sale and purchase agreement with the receiver manager of AED Oil Limited ("AED") under which KOVL has acquired all of the issued shares of AED Southeast Asia Limited ("AED SEA") for a nominal consideration and increased its total interest in Block L to 90%.

The sole asset of AED SEA is a 50% operated interest in a production sharing agreement ("Block L PSA") which gives it the right to explore for and, subject to the approval of a development plan, produce oil and natural gas from Block L in Brunei.

Block L is a 1,110 square kilometre (275,000 acre) exploration and development block covering certain onshore and offshore areas of Brunei. The size of Block L was recently reduced by 50% as part of the Phase 1 relinquishment process required under the terms of the Block L PSA. A 143 km2 3D seismic program is currently underway on Block L and two additional exploration wells will be drilled prior to the end of the Phase 2 exploration period of the Block L PSA.

Upon the closing of the acquisition of AED SEA, KOV will have a 90% interest in the Block L PSA with indirect wholly-owned subsidiary Kulczyk Oil Brunei Limited having a 40% interest and indirect wholly-owned subsidiary AED SEA (operator) having a 50% interest. The remaining 10% interest is owned by a private Brunei company at arm's length to KOV.

In addition to its interest in Block L, KOV owns a 36% interest in a production sharing agreement which gives it the right to explore for and, subject to the approval of a development plan, produce oil and natural gas from Block M in Brunei. Block M is a 1,505 square kilometre (372,000 acre) exploration and development block covering an onshore areas of Brunei to the south of Block L. The size of Block M was recently reduced by 50% as part of the Phase 1 relinquishment process required under the terms of the Block M production sharing agreement.


Sign up for PennEnergy's eNewsletters
For Email Newsletters you can trust


Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs