The Company is focusing on African oil and gas opportunities with the key focus on short-term production opportunities. The exploration assets should be in proven areas of discovery with above average upside potential.
Development Status of Lagia Oil Field
PetroSinai successfully started production operations in the Lagia Oil Field in 2012, with the following results to date:
Lagia 6 – drilled in 2000, was re-entered and reperforated in the Nukhul formation
Lagia 7 – drilled in 2000, was re-entered and reperforated in the Nukhul formation
Lagia 8 – the first in a three-well drilling programme in 2012, was successfully drilled to a depth of 396 metres. Placed on test production.
Lagia 9 – successfully drilled to a depth of 370 metres and hydraulically stimulated. Placed on test production.
Lagia 10 – completed to a depth of 422 metres. Placed on test production.
Lagia 11 - drilled in 2015 to a depth of 1,434 ft below drill floor and encountered approximately 213 ft of gross oil bearing Nukhul formation. The well was placed in production and is producing oil with a gravity of 13 degrees API.
Lagia 15 - drilled to a depth of 1,820 ft below drill floor. The well intersected the Nukhul formation as well the Thebes formation and discovered producible oil in both formations. Further analysis of the Thebes discovery will be concluded before Lagia 15 is placed in production.
Lagia 16 - drilled to a depth of 1,430 ft below drill floor and encountered 213 ft of gross oil bearing and potentially productive Nukhul formation. The well will be placed in production.
Subsequent to SacOil’s acquisition of Lagia we successfully performed a hydraulic stimulation project on all five wells and placed all five wells on test production. The wells have been prepared for thermal recovery and are awaiting the delivery and installation of steam facilities later in 2015.
We intend to drill five more wells in the field in 2015. The long-term development plan calls for up to 35 wells for the full development of this current fault block. We believe adjacent fault blocks may also be oil bearing. The produced oil is transported by road tankers to the nearby General Petroleum Company (“GPC”) production facility at Ras Gharib. GPC is owned by EGPC. First sales production occurred in the second quarter of 2013 and commercial production, as defined in the Lagia Concession, has been achieved.