IPR Completes Transaction with Pharos for Western Desert Assets Acquisition
Texas-based IPR Energy Group (“IPR”) announced the completion of its acquisition of Operatorship and majority Working Interest of 55% of Pharos Energy plc (“Pharos”) in the El Fayum and North Beni Suef Concessions in the Western Desert, as part of its aggressive expansion strategy in Egypt. This latest acquisition, spanning 6,624 km2 in the Western Desert, materially strengthens IPR’s position in Egypt, the Group’s core area of focus, by adding gross 41 MMBO 2P reserves to its existing portfolio. The assets also provide material, de-risked, exploration upside from multiple targets, while straddling the producing Gindi and Beni Suef Basins.
This acquisition presents scalable growth for IPR, underpinned by a secured investment strategy including a plan to invest over $80 MM in drilling exploration and development wells, workovers, recompletions, waterflooding, and seismic acquisition. The aggressive near-term investment and work program will include the use of multiple drilling rigs of varying sizes to achieve accelerated production while the energy industry experiences a high commodity price environment. The strategic location of the assets are near IPR’s Alamein, Western Desert base, creating synergies by utilizing IPR’s drilling and workover rigs to restore production, develop and appraise opportunities. Production to date has been under primary energy drive, with significant potential for secondary recovery via waterflood, which has already been successfully tested in the license.
With the acquisition, IPR will have 10 concessions, 7 operated, in the Western and Eastern Deserts, Nile Delta, and Gulf of Suez of Egypt. As an E&P Operator in Egypt for 30 years, IPR will continue to pursue a strategy of field life extension, operational efficiency, organic investments, and external growth.
Chairman & CEO, Dr. M.K. Dabbous, commented: “We are excited to continue our expansion with this strategic transaction and look forward to partnering with Pharos to maximize an attractive portfolio of assets that we intend to further develop, leveraging our success in enhancing the recovery of mature producing fields and virgin exploration. IPR’s ability to identify and close this deal is a testament to our deep understanding of the area and a clear statement of our intent to keep building our E&P portfolio in Egypt and beyond. This deal was highly attractive in a suppressed oil price environment, when negotiations began, and we take over with a much-improved backdrop, ensuring the immediate value accretive nature of this deal. We now look forward to working with our partners to continue to support Egypt through the energy transition, maintaining the highest international standards and contributing to the country’s economic and social fabric. As a leading upstream player in Egypt, IPR continues to build on the confidence in the Country’s leadership, and support of our banking partners, stakeholders, and strong relationships with the Petroleum Ministry, EGPC, and other governmental authorities, who we thank for their unwavering support.”
IPR consists of specialized upstream oil and gas companies with extensive global experience and resources. Since inception in 1981 as an expert petroleum engineering firm executing turnkey EOR field development projects in public sectors, IPR has expanded into its core business of international E&P operations by applying state-of-the-art technology for the exploitation of oil and gas worldwide. In addition to Egypt, IPR holds working interest in producing leases in Southeast Asia and the U.S.A. To serve both its own E&P business and external clients, IPR provides a complete array of G&G and petroleum engineering services, field services, and training. Throughout, IPR is committed to socially responsible best operational practices that positively contribute to communities where it operates.
(Source: IPR Energy Group)