Loyz announces Thai plan

Thai plan: Loyz ready to drill in June

Singapore’s Loyz Energy has announced a drilling programme for three petroleum concessions in Thailand, with drilling to start in late June.

The three onshore concessions in the Phetchabun basin are part of the company’s 2014 programme, with drilling starting imminently.

Loyz took a 20% stake in SW1, L44/43 and L33/43 in April and has planned to drill between five and seven wells from Australia's Carnarvon Petroleum.

The $65 million deal is the company's first leap into operating producing assets.

About half of the wells will be drilled on L33/43 based on the latest 3D seismic data.

New 3D seismic is set to be shot over L44/43 later this year, where the remaining wells will be drilled.

Loyz warned investors not to trade too heavily on the drilling programme.

“It is not certain that the drilling programme referred to above will ultimately yield commercially recoverable hydrocarbons or profitable production,” the company said.

From April to May the company has produced about 4000 barrels of oil per day, which has given the company’s cash flow a boost.

Estimated oil reserves cross the concessions are 29.6 million barrels based on an independent report by Chapman Petroleum Engineering.

Based on its 20% interest, Loyz is entitled to 5.92 million barrels over the next 20 years.

This output level could potentially bring in $144 million.

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