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MIE Announces Emir-Oil Operations Update

19/04/2012
 [19 April 2012, Hong Kong] MIE Holdings Corporation (“MIE” or the “Company”, together with the subsidiaries, the “Group”; Stock Code: 1555), an independent upstream oil company engaged in the exploration, development and production of crude oil and natural gas in China, Kazakhstan and USA, hereby provides a business update regarding its Emir-Oil, LLC (“Emir-Oil”) operations.
On the acquisition completion date, September 19, 2011, Emir-Oil had 24 wells drilled on Aksaz, Dolinnoe, Kariman and Emir oil fields, of which 8 wells were shut-in due to various reasons. Since the acquisition, the Company has been working to restore production from shut-in wells, to stimulate existing wells and to drill and complete new wells.
On November 3, 2011, the Company announced that, following completion of a side track well bore, Aksaz 2 well, being one of the shut in wells, was returned to production and had been producing for seven days at the daily rate of 315 barrels of oil. In March 2012 this well’s daily oil production averaged 291 barrels, still the highest in the Aksaz field.
As a result of the high gas rate from Aksaz 2 of 2,100 MCF per day and the limitation of the gas processing facility to a maximum of 5,300 MCF per day, three other wells with low oil production and high gas production were shut in on October 30, 2011. These three wells, Aksaz 1, 4, and 6 were producing a total of 73 barrels of oil per day. As the gas plant is de-bottlenecked in the second quarter of 2012, daily gas processing capacity will increase to 7,000 MCF and then in late 2012 the Company plans to further increase gas processing capacity according to projected gas production rates, enabling these three wells to be returned to production.
From the 13 wells operating during the first calendar quarter of 2012, Emir-Oil’s total daily oil production averaged 1,881 barrels and total daily gas sales averaged 4,752 MCF; however the Company was busy drilling and completing its first development well, Kariman 118, which came on production April 1, 2012 and has averaged 629 barrels of oil per day for the first 17 days of April 2012. This production is from four intervals in the Middle Triassic totaling 23.5 meters of net oil zones. Remaining for future completion are 29 meters of net oil zones.
The Company has also successfully finished drilling an exploration well, the North Kariman 2, on March 5, 2012. Regulatory approval of a completion and testing procedure is currently being obtained. From mud log and electric log data, six separate intervals have been selected for production testing including 10.2 meters in two zones in the Middle Triassic formation, which log calculations indicate contain oil. Reserves will be assigned to this well and the newly discovered oil field after further evaluation.
The first of two planned acid fracture treatments is now being performed on Kariman 5.  A total of 26,700 gallons of acid were pumped at a rate of 2.8 barrels per minute with surface pressure up to 8,700 psi. Spent acid and treatment water is now being swabbed from the well. The second acid fracture treatment on Dolinnoe 3 is planned for third quarter 2012. These acid fracture treatments are larger than the typical acid wash treatments done by Emir-Oil in the past and are expected to improve the daily production of oil from these 2 wells.
Fourteen wells are now in operation including the recently drilled Kariman 118. Three rigs are now active: the first on a new development well, Kariman 119; the second on a new exploration well, the sidetrack of Borly 2; and the third on the sidetrack workover on an existing well, Kariman 1. After these wells are finished drilling and North Kariman 2 is completed, then in the remainder of 2012 the Company plans to drill 3 more wells: one development well in Aksaz oil field, one development well in Dolinnoe oil field and one exploration well. We also plan to repair down-hole wellbore collapse problems in three more wells: Kariman 6, Dolinnoe 2 and Dolinnoe 6. By the end of 2012 twenty-five wells will be in operation. The eleven additional wells include four repaired wells, three Aksaz wells returned to production, three more development wells, and the North Kariman 2 exploration well. This count does not include the two additional planned exploration wells. The Company is proceeding at a good pace to meet its goal to produce an average of 3,500 barrels of oil per day in 2012 from its Kazakhstan Emir-Oil operations.
About MIE Holdings Corporation
MIE is an independent oil and gas company engaged in the exploration and production of crude oil and natural gas in China, Kazakhstan and USA. It is the largest independent upstream oil company operating onshore in the PRC as measured by gross production under production sharing contracts. The Group operates the Daan, Moliqing and Miao 3 oilfields in the Songliao Basin under three separate production sharing contracts with PetroChina, the largest oil company in China. The Group also holds an exploration contract and three production contracts that allow the Group to conduct exploration and production activities in the Mangistau province in the southwestern region of Kazakhstan. In addition, the Group pursues other development and production opportunities in China, and exploration, development and production opportunities internationally, both independently and in partnership with other major and independent oil companies.
MIE is listed on the main board on HKEx with stock code 1555.
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Issued by Porda Havas International Finance Communications Group for and on behalf ofMIE Holdings Corporation. For further information, please contact:
Porda Havas International Finance Communications Group
Mr.  Terence Wong  +852 3150 6773  terence.wong@pordahavas.com
Mr.  Henry Ho  +852 3150 6712  henry.ho@pordahavas.com
Ms.  Yuly Chen  +852 3150 6746  yuly.chen@pordahavas.com
Fax:+852 3150 6728