Quick take: Reach Energy rises 8.8% on winning production contracts in Kazakhstan

KUALA LUMPUR: REACH ENERGY BHD rose almost 9% in early trade Wednesday, after the company secured production contracts for North Kariman, Yessen fields in Kazakhstan.

The counter, one of the most active on Bursa Malaysia, rose 8.82%, or 1.5 sen to 18.5 sen with over 15 million shares traded.

Reach Energy’s subsidiary in Kazakhstan has obtained production contracts for the North Kariman and Yessen fields there, for the respective periods of 16 and 25 years, starting Jan 1 this year.

The production contracts were obtained by Emir-Oil LLP, in which Reach Energy controls a 60% stake via Palaeontol BV. Emir-Oil holds the entire 100% working interest in the 850.3 sq km Emir-Oil Concession Block in Kazakhstan.

Reach Energy said this is a testament to Emir-Oil’s strong relationship with Kazakhstan’s Ministry of Energy (MoE), coupled with the observed commercial attractiveness of both fields from previous well tests.

This achievement is significant to Emir-Oil’s master development plan to integrate the Kariman and North Kariman fields as one large hydrocarbon bearing structure in the near future.

“Yessen has also shown good productivity in its wells from past well tests, and the company plans to exploit this new commercial field with best-in-class reservoir management practices, “ Reach Energy said.

Source: TheStar