KrisEnergy Ltd. is pleased to announce that Cambodia’s first oil field in the offshore Cambodia Block A concession, commenced production on 28 December 2020. The Apsara field began flowing from a single development well and the flow rate will take at least 24 hours to stabilise. Production will increase to plateau as four additional wells are progressively completed and commissioned.

The Apsara field lies over the Khmer Basin, an unproduced geological basin in Cambodian maritime waters in the Gulf of Thailand. Due to the unproven production performance of the basin, development of the Apsara area will be in several phases to mitigate risks and provide time for the collection and analysis of critical data to be applied in future phases.

The components of Mini Phase 1A are:
- A minimum facilities wellhead support structure capable of housing up to six development
wells, (the “Mini-Platform”);
- Five initial development wells drilled by the PV Drilling III jack-up rig;
- The Ingenium II production barge for oil, gas and water processing;
- A storage vessel moored in field for storage of processed crude oil prior to offloading; and
- Support from an onshore shore base at Sihanoukville, 160 km from the field location.

KrisEnergy is the operator of Block A and holds a 95.0% working interest. The remaining 5.0% interest is held by Royal Government of Cambodia through the General Department of State Property and Non Tax Revenue (“GDSPNTR”) of the Ministry of Economy and Finance.

Kelvin Tang, Chief Executive Officer and President of KrisEnergy’s Cambodian operations, said:

“Apsara first oil marks a 10-year journey from when KrisEnergy initially became a partner in Block A. It has been three years since we signed with the Government the petroleum agreement to launch this project and there has been a steep learning curve for all involved in what is a momentous event for the Cambodian people and an important strategic and operational milestone for KrisEnergy.

In the context of the COVID-19 pandemic in 2020, progressing Apsara to first oil has been a tremendous achievement and a testament to the determination of the KrisEnergy team and the strong cooperation of our contractors and suppliers. The cross-border logistics of mobilising personnel and equipment to execute this development safely during this time of COVID-19 would not have been possible without the expeditious and engaged support of the Royal Government of Cambodia.

I convey my heartfelt appreciation to all relevant ministries and authorities for their assistance, cooperation and their dedication to get the Apsara oil development over the line. KrisEnergy is honoured to be a part of this historic occasion.

I also wish to express gratitude to Keppel for their belief and support through their investment in the Apsara development, the refurbishment of the production barge and providing logistical support. I also thank everyone who has worked directly on Apsara Mini Phase 1A for all your efforts in very trying circumstances.

Our task now is to complete drilling of the four remaining wells, stabilise production and monitor performance so that we may assess the best path forward to optimise Cambodia’s oil production and the value of the asset in the years ahead.”

More than 1.3 million man-hours have been recorded on the Apsara Mini Phase 1A development
project to date with zero lost time injuries.

The Technical Sheet for the Mini Phase 1A Apsara oil development is appended to this press release.

The Company highlights that the matters in this announcement could be relevant to the Scheme Creditors’ (as defined in the Scheme of Arrangement dated 20 November 2020 (“Scheme”)) when they consider the Scheme. In this regard, all Scheme Creditors should read this announcement carefully and together with the documents released on 20 and 27 November 2020 relating to the Scheme.

About KrisEnergy

KrisEnergy Ltd. is an independent upstream company focused on the production and development of oil and gas resources in Southeast Asia. The Company holds working interests in two producing oil and/or gas licences, one in the Gulf of Thailand and one onshore Bangladesh. It also participates in nine concessions in various stages of the E&P lifecycle in Bangladesh, Cambodia, Indonesia, Thailand and Vietnam. KrisEnergy operates eight of the contract areas.