REACH ENERGY HITS OIL IN NORTH KARIMAN FIELD ONSHORE KAZAKHSTAN

Reach Energy Berhad based in Kuala Lumpur Malaysia, announced that its exploration well, North Kariman-3 (NK-3) located in the North Kariman Field in the onshore Emir Oil Concession Block in Kazakhstan, has yielded positive results during the initial testing phase. NK-3 which was spudded in early February this year, is the first of 6 wells committed under the current Exploration Contract with the Ministry of Energy, Kazakhstan. The well penetrated the Mid-Triassic carbonate reservoirs, with a total True Vertical Depth Subsea (“TVDSS”) of 4,140.66 metres. Moving forward, the Company is now proceeding to apply for a test production license to further ascertain the commercial viability of this well. Two shallower intervals will be perforated in the future once the test production of the aforementioned interval is completed. The Company expects an increase in value of the well in terms of commerciality and contribution to overall reserves and production if the well yields positive results. “We are happy to announce another discovery after Yessen-3. This development further highlights the vast exploration upsides that the Emir-Oil Concession Block has. Not only that, we have also discovered that reservoir pressure from the NK-3 well was determined to be relatively high as compared to surrounding wells. This suggests that NK-3 would be a highly productive well once we commence production,” said Ir. Shahul Hamid bin Mohd Ismail, Chief Executive Officer of Reach Energy Berhad.
Currently, Emir-Oil’s 2P reserves stands at 81 million barrels of oil equivalent which is subject to an update early next year by its reserves auditor, Gaffney, Cline and Associates (“GCA”).
The Emir-Oil Concession Block is located onshore in the Mangystau Oblast (situated in the southwestern region of Kazakhstan), about 40 km northeast of the City of Aktau which is Kazakhstan’s largest sea-port on the Caspian Sea coast. The Emir-Oil Concession Block has a total contract area of approximately 850.3 km2. (Source: Reach Energy)