FOCUS Energy Limited, one of the biggest onshore oil producers in Myanmar, is planning to spend about US$4 million on appraisal and development wells, the Chief Executive Officer of the company, Mr Maurie Drew, said last week.

The company, which is exploring and extracting oil in Upper Myanmar, is planning to drill about nine new wells at the end of the year.

“Now we are drilling two development wells, and at the end of the year we expect to drill another nine wells, mostly development wells,” Mr Drew told Myanmar Times last Tuesday.

“We have one recent well which is very successful, we might want to step out from that,” he added, admitting though that the company has had some technical difficulties.

Focus started operation in Myanmar in 1997 and is responsible for about 15 per cent of total onshore oil production in Myanmar. According to Mr Drew, production at Htaukshabin and Kanni oil fields declined when Focus took over the wells from Myanmar Oil and Gas Enterprise, although the company is working to increase production.

“Now we are producing about 2500 bpd (barrels per day) and we have a plan to increase production… we produce a little bit more every month,” Mr Drew said.

He said there is still a lot of potential in the area – of the 1000 wells in Htaukshabin and Kanni, only 300 are producing oil.

“Part of what we do is go back to old wells that have stopped producing and try to repair them – make them produce again,” Mr Drew said.

Focus’ contract with the Myanmar government finishes in 2009, although Mr Drew is negotiating to get it extended, he said.

Focus is a privately-owned energy company registered in British Bergin Island, the major shareholders are based in Switzerland. The company employees about 120 staff.