Mirach Energy

Mirach Energy: The company announced oil discovery in its newly drilled Kampung Minyak (KM) oil field, at KM607 well with “surprisingly high pressure” from a untouched layer of oil reserve called S8. Mirach is currently performing a series of tests and perforations to optimize production. Though no statistics were available, Voyage Research believe oil production from KM607 should be around 150 barrels per day and oil reserve of KM oilfield may be adjusted upward. According to Voyage, the discovery at KM607 is likely to exceed previous estimates of about 40-50 barrels per day for each new well. Mirach is going to drill a total of 12 such wells in the KM oilfield till end of the year and is likely to exceed house previous target of 400 barrels per day output by 2H 2014. House now expect the company to produce about 600 barrels of oil per day in 1H 2014. Mirach intends to apply to Pertamina to drill new wells deeper than 1000 meters in KM. In view of the oil discovery and the company’s intention to explore the deep zone, Voyage are revising its previous valuation method for the KM oilfield (both the shallow and deep zones) from reserve based to production based. House project 600 barrels of daily crude oil output in 2014 and 3350 barrels of daily crude oil output in 2018. Voyage has a TP of $0.75 for Mirach Energy.