Monday, August 22, 2011
American Energy Group Ltd.
The American Energy Group announced that Hycarbex has advised that continuous gas production from the Haseeb Gas Field resumed on July 12, 2011 under the Extended Well Test (EWT) project and the Haseeb #1 Well is currently producing 3.5 million cubic feet of gas per day. According to Hycarbex, the Haseeb #1 Well is expected to reach 15 million cubic feet of gas per day once the commissioning of the gas processing facility is optimally completed. Hycarbex further advised that as of August 11, 2011, around 106 million standard cubic feet has been delivered to Sui Southern Gas Company Limited under the Gas Sale and Purchase Agreement. Hycarbex had previously announced the interruption of the EWT project caused by mechanical problems encountered in the commissioning of the gas processing facility owned and operated by a third party.
The Haseeb Gas Field is a part of the Yasin 2768-7 Block Exploration License in which The American Energy Group, Ltd. owns an 18% royalty. Hycarbex is the operator of the Exploration License and owns a 95% Working Interest. A 5% (carried) Working Interest in the Exploration Block is held by Government Holdings (Pvt) Limited (GHPL). However, during the temporary EWT production phase, Hycarbex holds 75% Working Interest, including the cost obligations related to the EWT production facilities, and GHPL holds 25% Working Interest.
Hycarbex further advised that based upon evaluation of currently available technical data by GSM, USA, the Haseeb Gas Field is estimated to contain 174 billion cubic feet of P90 recoverable reserves, 177 billion cubic feet of P50 recoverable reserves and 196 billion cubic feet of P10 recoverable reserves, however these reserve estimates provided by Hycarbex are subject to further confirmation and full data evaluation after the appraisal program, as approved by the Pakistan Government, including the EWT.
Hycarbex further advised that it intends to undertake additional work in the Yasin 2768-7 Exploration Block outside the Haseeb Discovery area so as to evaluate the productivity potential of the remaining License area. Since its initial license acquisition, Hycarbex has made an investment of approximately US $27 million in petroleum exploration and development in Pakistan, where it has exclusively focused its activities. In addition to the Yasin 2768-7 Block, Hycarbex currently operates two other petroleum exploration licenses (i.e. the Peshawar and Karachi Blocks) and is a working interest owner in two other exploration blocks (i.e. the Zamzama North and Sanjawi Blocks) operated by Heritage Oil Plc. The American Energy Group, Ltd. owns a 2.5% working interest in each of the Zamzama North and Sanjawi Blocks which is a carried interest for the initial 2 wells on the Sanjawi Block and the initial 3 wells on the Zamzama North Block. The American Energy Group, Ltd. has the option to convert its working interest in any well at any time to a 1.5% gross royalty interest free of any exploration costs or operating costs.
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