Kuwait, 12 December 2010: Kuwait Energy Company, one of the fastest growing independent oil and gas exploration and production companies in the Middle East, today announced it has sold a 20% participation interest from its contractor's share in the Burg El Arab concession in Egypt to Calgary-based oil and gas company East West Petroleum Corporation.
Kuwait Energy will remain the operator of the Burg El Arab concession with a 55% interest from the contractor's share in addition to the operatorship. Gharib Oil Fields, partner in Burg El Arab, will retain its 25% participation interest.
Kuwait Energy Company Deputy Chairman and CEO, Sara Akbar, said: "The agreement enables Kuwait Energy to align its portfolio with its long-term growth plans. We remain the operator of the concession and are glad to begin our joint venture with East West Petroleum to realize the full potential of the asset."
East West Petroleum Corporation President and CEO, Greg Renwick, said: "East West Petroleum is extremely pleased to have entered an agreement with a leading Middle Eastern private-sector firm such as Kuwait Energy Company. We look forward to working closely with Kuwait Energy Company to bring unconventional hydrocarbon studies and technologies to the partnership to enhance the value of the Burg El Arab Concession Agreement Area."
The Burg El Arab concession is situated in the prolific Western Desert area of Egypt. The transaction is subject to customary regulatory approvals, including the endorsement of the Egyptian Government.
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About Kuwait Energy:
Headquartered in Kuwait, Kuwait Energy Company is one of the few independent oil and gas exploration and production companies operating in the Middle East
Kuwait Energy has been profitable since inception in 2005, and currently operates in Egypt, Yemen, Oman, Ukraine, Latvia, Russia, and Pakistan
Kuwait Energy's proven and probable reserves at year end 2009 were 51.2 million barrels of oil equivalent and its current production is ~14,000 barrels of oil equivalent per day
Kuwait Energy is targeting an initial public offering (IPO) in the London and/or Kuwait stock markets within the next nine months, subject to market conditions. Once listed, the company will become one of the few publicly available investment opportunities directly connecting investors to the oil and gas exploration and production sector in the Middle East
For more information, visit Kuwait Energy's website at: www.kec.com.kw
Or contact: Fawaz Al-Sirri, Mobile: +965-97187345, Email: fawaz@bensirri.com
About East West Petroleum Corporation:
East West Petroleum Corporation is a Canadian-based exploration and production company specialized in the development of unconventional and conventional petroleum resources globally
With a technology-driven team, East West Petroleum applies state-of-the-art exploration, drilling and completion technologies to identifying unconventional opportunities where significant unconventional hydrocarbon potential exists and to serve regions with short supplies of energy.
© Press Release 2010
