Irish partner Circle Oil said on Thursday that log analysis from the AASE-18 well, located in the north-western part of the Al Amir SE field, indicated 34 feet of net pay in the Shagar and 32 feet of net pay in the Rahmi oil reservoirs. Both zones were understood to be of good reservoir quality.
The well is now expected to be tested and completed as a Rahmi producer.
In the the Geyad field, Vegas’ Shehab-2 exploration well encountered about 30 feet of potential gas-bearing sands in the Upper Rudeis limestones and good quality intervals in the Kareem horizon, which were found to be water bearing.
However, following hydraulic fracture stimulation, the well was tested but failed to flow gas to the surface. It has now been temporarily abandoned while alternative stimulation options are being considered, Circle said.
The two fields are located in the NW Gemsa concession, which lies about 300 kilometres southeast of Cairo and covers about 260 square kilometres in a partially unexplored area of the Gulf of Suez basin.
It is operated by Vegas with a 50% interest while Circle holds a 40% stake and Sea Dragon holds the remaining 10% equity.
Sea Dragon chief executive Paul Welch said in a statement that the AASE-18 well results were surprising and positive: “We can expect another strong producer in this part of the field as it extends towards the south east”.
“Initial results from the Shehab-2 exploration well were not as hoped but given the thick hydrocarbon bearing interval encountered in the Rudies limestone, potential remains,” he said.
“We will continue to review the completion options with the operator to determine if value can be unlocked from this horizon,” Welch added.