Loyz Energy to buy stake in Thai licenses

March 5, 2014
Loyz Energy Ltd., Singapore, has agreed to buy 20% interests in three onshore license areas under development in Thailand.

Loyz Energy Ltd., Singapore, has agreed to buy 20% interests in three onshore license areas under development in Thailand.

The seller is Carnarvon Thailand Ltd., a subsidiary of Carnarvon Petroleum Ltd., Perth, which now holds a 40% interest. Loyz Energy will pay $65 million.

The SW1, L44/43, and L33/43 production licenses, about 300 km north of Bangkok, produce 1,200-1,400 b/d of oil (OGJ Online, May 28, 2009). Loyz Energy said operator ECO Orient Energy (Thailand) and ECO Orient Resources (Thailand), plans to boost production to 3,000 b/d in June and 5,000 b/d by December.

Loyz Energy said ECO Orient has drilled three wells on the licenses so far this year in a 15-well program. All three wells had oil shows and await test results.

Proved and probable reserves, according to a December 2012 assessment by Chapman Petroleum Engineering Ltd. for the operator, are 29.3 million bbl of oil.

Carnarvon said activity last year included drilling of eight development wells across all the areas, the start of water injection on the L33/43 license, and the acquisition of 100 sq km of 3D seismic data.

ECO Orient bought its 60% interest in the concessions in 2012 from Pan Orient Energy Corp., Calgary.