RAK Petroleum has announced a profit of US$8.03 million for the year ended 31 December 2009, followed by a profit of US$8.303 million for the first quarter of 2010.
“We are pleased to announce two profitable reporting periods after recording a loss of US$57.363 million for 2008,” said Bijan Mossavar-Rahmani, Chairman of the Board of Directors and chief executive officer of RAK Petroleum Public Company Limited, speaking at the Company’s annual Ordinary General Meeting for shareholders held in Ras Al Khaimah today.
He told those in attendance that during 2009 the Company continued to streamline existing assets while pursuing new exploration and production opportunities in the Middle East and North Africa.
“Given uncertainties in global financial markets and volatile product prices in the industry, we reduced overheads and deferred expenditures, including some exploration drilling—and instead, funded new spending from oil and gas revenues to preserve bank balances and cash,” he said.
Production from the West Bukha oil and gas field located in Block 8, offshore the Sultanate of Oman, commenced in early February 2009 following commissioning of a newly installed platform and by yearend reached an average daily figure of 10,000 barrels of oil and 30 million cubic feet of gas. RAK Petroleum holds a 50 percent operated interest in Block 8 following the acquisition of Heritage Oil Limited’s 10 percent share for $28.4 million in early 2009. Korea’s LG International Corporation holds the other 50 percent.
“We believe that Block 8 has additional untapped potential both in terms of proven reserves and production,” said Mossavar-Rahmani. “After performing extensive reservoir studies and well monitoring during the year, we have applied for government approval to drill in 2010 a third well on the western side of West Bukha and a further well on Bukha.”
Mossavar-Rahmani highlighted several key points at the meeting:
- RAK Petroleum announced at the end of April that its holding in DNO International AS, a publicly-traded Norwegian oil and gas company whose principal producing properties are located in the Kurdish Region of Iraq and the Republic of Yemen, had reached 30%.
- The Company plans to commence drilling in the second quarter of 2010 in the Tunisian Republic’s Gulf of Hammamet where it acquired a 30 percent interest in a license which it announced on 2 March.
- Application has been made to develop the Hamrat Duru field, a newly delineated gas field in Block 30, Sultanate of Oman, where the Company successfully tested for gas earlier this year as announced on 23 March. The field will be developed along with other fields located in Block 30.
- RAK Petroleum also announced that it has completed a wireline pressure survey campaign to evaluate the remaining potential of the currently shut-in Saleh gas field in which the Company has a 40 percent stake for possible redevelopment offshore of the Emirate of Ras Al Khaimah.
