In 2023 the Group exercised an option to acquire the Block 8 Contract Area for a maximum consideration of $60 million to be paid from a $5 per barrel royalty from future production at the Block 8 Contract Area.

The Block 8 Contract Area is approximately 160 km from the BNG Contract area and extends over 2,823 sq km with three identified structures.

The Block 8 licence was previously held by LG International the Korean conglomerate, who in 2006 started to acquire 3D seismic data over approximately 456 sq km. 

In recent years two deep wells have been drilled to depths of 4,203 meters and 3,449 meters respectively, from which oil has flowed at rates of up to 800 bopd but at the time they were shut in, as required as part of the licence renewal process, produced at the rate of 110 bopd.

Two other wells were drilled in 2022 and 2023 to depths of 3,922 and 3,408 meters respectively and on receipt of the new Block 8 licence will be tested.

Completion of the acquisition of the Block 8 Contract Area is dependent on the renewal of the Block 8 licences and regulatory change of control consents in Kazakhstan and the UAE.

Operations