PICO Cheiron announces acquisition of Sahara North Bahariya
PICO Cheiron Group announced that it has completed the corporate acquisition of Sahara North Bahariya, giving the Group ownership of a 50% Working Interest and Operatorship of the North Bahariya concession in the Western Desert.
The North Bahariya concession covers an area of around 177 square kilometers and contains six oil fields, namely Abrar, Ferdaus, Ganna, Rawda, Sidra and Rayan, producing from the Cretaceous Abu Roash formation. On a combined basis, the fields are producing over 8,000 bopd gross and hold certified proven plus probable oil reserves of 31 mmbbls as of June 2016. Similar to neighbouring acreage in the Western Desert, there are significant opportunities to add value to the concession through the use of advanced drilling and completion technologies and the potential implementation of secondary recovery schemes.
Based on technical studies and regional geologic analogues, the concession is also thought to have exploration potential in the deep Jurassic and shallow Paleocene formations.
The acquisition represents a significant milestone for the Group as it seeks to grow and diversify its asset portfolio. As a result of the acquisition, Group operated production has increased to a record level of 39,000 boepd and is set to rise further with planned investments in its Gulf of Suez fields and other asset acquisitions.
The Group looks forward to working in close cooperation with the North Bahariya joint venture partners, IPR Transoil Corporation and INA Naftaplin, to pursue an active drilling and workover program on the concession in 2017 and 2018.
(PICO Cheiron Group Press Release)