Loyz acquires stakes in Thailand petroleum concessions

Singapore-based exploration and production company Loyz Energy has acquired stakes in three onshore petroleum concessions in Thailand.

Earlier this year, the company’s subsidiary Loyz Thailand Oil signed a sales and purchase agreement with Carnarvon Petroleum to acquire a 20% stake in three producing concessions, SW1, L44/43 and L33/43, located in the Phetchabun basin, north of Bangkok.

Australia-based Carnarvon will receive $65m, with Loyz enjoying immediate returns from the producing wells at the concessions. Loyz will pay approximately $33m in cash and the remaining $32m in future royalty payments.

Loyz Energy managing director Adrian Lee said that the assets included exploration potential which could offer significant growth.

"With this latest deal, we have secured our very first producing concessions, marking an exciting new chapter for Loyz," Lee added.

"Moreover, the recurring income derived from these fields will enable us to boost production at our other operations while helping to fuel further exploration initiatives."

A 15-well drilling programme has been planned across the concessions, with the three wells drilled so far producing oil shows. Loyz anticipates the next 12 wells will be drilled and brought on production within the next seven months which should increase daily production.

Thailand production is currently at a combined rate of around 3,000 barrels of oil a day, a significant increase on February levels of 1,200. Loyz expects the rate to increase to 4,000 barrels of oil a day by the end of May.

Estimated oil reserves of the three concessions combined are 29.6 million barrels based on an independent report by prepared by Chapman Petroleum Engineering. Loyz is entitled to 5.92 million barrels over the next 20 years based on the company’s 20% stake, with the output level expected to bring in $144m.