Jun 15, 2010
We have been engaged in the exploration and development of oil and gas fields and the production of oil, condensate and gas in the Pre-Caspian basin of Western Kazakhstan. We have operated two fields. KPM has operated the Borankol field and TNG has operated the Tolkyn field, each pursuant to subsoil use contracts with the government of Kazakhstan.
KPM and TNG began exploration of the Borankol and Tolkyn fields in 2000 and 2001, respectively. TNG is also engaged in exploration activity on the Tabyl Block. Since 2000, approximately $989.6 million has been invested in exploration and development work of the Borankol field, Tolkyn field and Tabyl Block collectively. Production testing began from the Borankol and Tolkyn fields in 2001 and 2003, respectively. During the year ended March 31, 2010, we had 92 operational wells. During the three months ended March 31, 2010 we produced 36.9 mboed on average.
The Borankol field covers 16,610 gross acres and Tolkin field covers 8,928 gross acres. We produced approximately 89.6% of our oil from the Borankol field during the three months ended March 31, 2010. Once oil is extracted from the wells, it is separated from the associated gas and impurities at a treatment facility located on site at the Borankol field. We produced 98.5% of our condensate and 97.5% of our gas from the Tolkyn field during the three months ended March 31, 2010. Once extracted from wells, the gas is transported to the Borankol field where it is treated in a processing facility where condensate is separated from the gas. Since 2000, approximately $985.9 million has been invested in exploration and development work of the Borankol field, Tolkyn field and Tabyl Block collectively.
Our sales are dependent on our level of production of oil, condensate and gas. Our daily production during the three months ended March 31, 2010 was 36.9 mboe.
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