Production: 3.5 MBOE/d
Arawak Energy Corp., Anguilla, British West Indies, (Toronto: ABG) plans to acquire Saigak Investments BV from privately held Rotterdam, The Netherlands-based Vitol BV for 8.4 million shares valued at C$24.7 million. Saigak has a 40% participating interest in the Saigak Field in western Kazakhstan. The field is approximately 120 kilometers from Arawak's existing Akzhar Field in the Aktyubinsk region. The Saigak Field is operated by Maersk Oil Kazakhstan GmbH, which owns the remaining 60% interest. Gross production is approximately 3,500 barrels of oil equivalent per day. Original recoverable reserves are 14.6 million barrels with net recoverable reserves of 2.4 million barrels as of year-end 2006. Arawak chief executive Alastair McBain says, "We believe that this strongly cash-generative asset will add to the bottom line and provide funds for our ambitious development programs in Kazakhstan and elsewhere. Also, we are hopeful that more aggressive plans will be found to arrest or reverse the natural decline in this field so that production will continue at Saigak for many years to come."