The Kanni Field, which is situated on trend sub-parallel to and east of the southern portion of Htaukshabin, was discovered in 1985 after the results of a seismic survey. Peak production of 3560 BOPD from 73 wells was reached in October 1991. Thereafter production declined from about 3000 BOPD in 1994 to the present 1601 BOPD where it is declining at a constant rate of 20% per annum.

Cumulative production from the field to the end of 1999 is nearly 9 MMBBLS of oil and 1.4 BCF of gas. Current production (May-2001) is 1601 BOPD and 5.82 MMCFPD of gas from 99 oil and 16 gas wells, respectively.

The Kanni oils are about 20º API gravity with a low wax content and a pour point below 20ºC. The associated and free gas is mainly methane (95-99%).

Certain of the oils in shallow pools are quite viscous and appear to be amenable to treating with a heater to increase production.

FOCUS calculated the oil-in-place at Kanni to be 42.2 MMBBLS of oil compared with MOGE.s estimate of 38.6 MMBBLS.

The Kanni structure is an independently closed, crestally faulted, elongated dome that covers an area of 2 miles long by 1.5 mile wide. A significant normal fault, the Y-Fault, with a throw of 1000 feet in the north and 2000 feet in the south divides the field into two major fault blocks: West and East Kanni, respectively. This fault with associated cross-faulting sub-divides the field into 5 separate blocks including the two mentioned previously.

The Field produces from an Early Miocene reservoir package of sandstones that were deposited in a shallow shelf to fluvio-deltaic environment. Up to 10 producing reservoirs have been identified that have a combined net pay thickness of 434 feet. Individual net pay thickness ranges from 8-85 feet. A number of the pay zones are at the top of and within north-south trending distributary channels.

One of the fault blocks on the eastern flank at Kanni (SD Block) produces mainly associated gas from the 2000-ft and 2200-ft sand levels, similar to the level having gas potential in southern fault blocks at Htaukshabin.