Search Share Prices
Rockhopper assets in Egypt making decent progress
Oil and gas company Rockhopper Exploration updated the market on its Egypt portfolio's operations and corporate affairs on Tuesday, reporting that at Abu Sennan, where it has a 22% working interest, year-to-date average daily production had been maintained at around 4,000 boepd gross, or 880 boepd net to Rockhopper.
The AIM-traded firm said an active programme had been agreed for 2018, including the drilling of one exploration well at 'Prospect S, two development wells and a water injection programme targeting the Al Jahraa field.
A drilling rig had been contracted, the board confirmed, and was expected to arrive in the concession "shortly".
The first well was anticipated to spud in the last week of June once rig-up and all inspections were completed.
Rockhopper said it was currently planned that the two development wells would be drilled first - Al Jahraa-6 and Al Jahraa-11 - followed by the exploration well at Prospect S.
"In addition to increasing production from the Abu-Roash reservoirs, Al Jahraa-6 has been designed to test a deeper exploration target in the Bahariya to test good quality, water wet sands encountered in Al Jahraa-1, but in an up-dip location," Rockhopper's board explained.
"Prospect S is an exploration target in the adjacent fault block to the Al Jahraa field.
"It has a similar tilted fault block trap and is targeting the same Abu Roash reservoirs that produce at Al Jahraa."
The water injection project was said to be progressing "well", and injection was expected to begin in early July.
The operator had reportedly performed the hydrotest for the new line from the water injection station to the Al Jahraa-9 injection well.
Preparations for installation of all the necessary equipment were in the final stages.
Rockhopper said the development programme at the Al Jahraa field was designed to increase reserves and field production rates.
"Drilling on the Abu Sennan concession is expected to last for approximately six months with total capital expenditure, net to Rockhopper's 22% interest, of approximately $3m."
At El Qa'a Plain, where the company has a 25% working interest, Rockhopper said commitment well Raya-1X was spudded on 17 June.
That well was targeting the Nukhul Formation reservoir, known from the Gulf of Suez, in a tilted fault block structure, close to where oil had been tested from the same formation.
Expenditures on the El Qa'a Plain concession, net to Rockhopper's 25% interest, were anticipated to be less than $1m.
"Rockhopper continues to experience an improving payment situation in Egypt with a number of payments from Egyptian General Petroleum Corporation towards its outstanding receivables balance received in recent months," the board said of its payment situation in the country.
"As at [the] end [of] May, Rockhopper's EGPC receivable balance was approximately $2.2m unaudited."