Pacific Energy Development provides update on Kazakhstan assets

Baku, Azerbaijan, Nov. 18

By Elena Kosolapova - Trend:

Pacific Energy Development company, an energy company engaged in the acquisition and development of strategic, high-growth energy projects, provided an update on its pending acquisition of a 5 percent interest in Caspian Energy Inc.

Caspian Energy is a Canadian publicly-traded company which is in the process of acquiring a 100-percent working interest in production and exploration licenses covering an approximate 380,000 acre oil and gas producing asset located in the Pre-Caspian Basin in Kazakhstan (the "Caspian Transaction").

As previously announced by Pacific Energy Development, the company has no further funding obligation for the future development of the Kazakhstan asset.

This Kazakhstan asset is located in the North Block of the Pre-Caspian Basin, one of the largest producing basins in Kazakhstan, and is covered by an exploration license issued by Kazakhstan, held by Caspian Energy's Kazakhstan subsidiary, Aral Petroleum.

Aral Petroleum currently has one producing oilfield in this asset, the East Zhagabulak (EZ) oilfield, which recently entered the commercial production stage with a 20 year production license expiring in 2034. Aral Petroleum also has several oil prospects in the asset that are currently in the exploration stage.

According to public regulatory filings made by Caspian Energy on November 14, 2014, Caspian Energy has scheduled a special meeting of its shareholders on December 12, 2014 to approve the Caspian Transaction.

Upon closing the Caspian Transaction, Frank C. Ingriselli, the Chairman and Chief Executive Officer of Pacific Energy Development company, will join the Board of Directors of Caspian Energy to serve as an independent director and as a member of Caspian Energy's Audit Committee.

"We look forward to the closing of our acquisition of 5 percent of Caspian Energy and my appointment to their Board of Directors, will allow Pacific Energy Development to have a meaningful impact on the continued development and commercialization of the Kazakhstan asset, while providing valuable oversight of our investment," Ingriselli said.

The company also said that Aral Petroleum had successfully obtained a renewed gas flaring and emission permit for the East Zhagabulak oilfield.

"The permit will allow the three previously producing wells to re-commence their commercial production, which wells Aral Petroleum voluntarily shut-in at the end of 2013 pending renewal of this permit," the company said.

Prior to their voluntary shut-in, these three wells, East Zhagabulak #301, East Zhagabulak #306 and East Zhagabulak #315, were producing just under 1,300 barrels of oil per day, with Caspian Energy expecting similar production rates when production is recommenced in October 2014.

Moreover Aral Petroleum has obtained an additional 4-year extension on the Exploration Contract for the area outside of the East Zhagabulak oilfield (which oilfield has a 20 year production license expiring in 2034). With this extension approval obtained, Aral Petroleum is now in the process of considering additional geological exploration activities in the area.

The Pre-Caspian Basin is considered the fifth largest oil basin in the world and the North Block is one of the largest producing basins in Kazakhstan, with its neighbors including some of the largest oil fields in the world.

Edited by S.I.