Rockhopper Exploration PLC on Tuesday said it will complete planned drilling work in Egypt before deciding what further work will be undertaken later on this year.
Rockhopper holds a 22% interest in the Abu Sennan concession in Egypt, where one exploration well and one development well will be drilled in the first half of 2017, close to the Al Jahraa and Al Jahraa SE fields, where a new development lease was secured in the final quarter of 2016.
The exploration well, Al Jahraa-SE2, which is due to spud in March 2017, will target the AR-C reservoir in the fault block immediately to the south of the Al Jahraa SE field. On completion of the exploration well, the rig will move directly to Al Jahraa-9, which is a development well expected to spud in May 2017.
This development well targets the AR-C reservoir at a location deeper than the current deepest oil penetration at Al Jahraa-4, with the aim of proving additional reserves. Rockhopper said no oil-water contact has yet been encountered in the field.
“The well also seeks to demonstrate the connection between the Al Jahraa and Al Jahraa SE fields through the oil leg. In addition, the operator has proposed two work-over operations during the second quarter of 2017,” said Rockhopper.
“The outcome of operations in the first half of 2017 on the Abu Sennan concession will determine the activities during the second half of the year,” Rockhopper added.
Rockhopper also noted the recent announcement by Kuwait Energy in relation to the farm-out of a 25% interest in the Abu Sennan concession. Rockhopper said it has waived its right of pre-emption in relation to the transaction.
“Whilst the details of Kuwait Energy’s proposed farm-out are confidential they nonetheless re-enforce the attractive terms on which Rockhopper entered the Abu Sennan concession last year,” the company said.
Rockhopper’s receivable owed by Egyptian General Petroleum Corp stood at USD4 million at the end of 2016, the company added.
In 2017, Rockhopper said total development, exploration and abandonment costs are expected to be USD13 million, of which USD3 million on activities in Egypt and USD2 million of abandonment costs.
(Source: Alliance News)