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Oil & Gas

Rockhopper Exploration provides update on Abu Sennan operations, receivables

Posted: June 15, 2017 at 5:52 pm   /   by   /   comments (0)

rockhopperRockhopper Exploration, the oil and gas company with key interests in the North Falkland basin and the Greater Mediterranean region, is pleased to provide the following operational and corporate update.

Abu Sennan, Egypt (RKH 22% working interest)

Al Jahraa SE-2X

Exploration well Al Jahraa SE-2X, situated on the Abu Sennan-5 (Al Jahraa South East) Development Lease, was spudded on April 25, 2017, as the first of a two-well drilling campaign.

The primary target of the well was the Cretaceous Abu Roash-C (AR-C) reservoir in the fault block immediately to the south of Al Jahraa South East field. The target reservoir was dry, but the well has been side-tracked northwards into the Al Jahraa SE field. If logging confirms oil pay, the well will be completed as the first oil producer in the AR-C reservoir in this field giving a near term increase to average daily production on the concession.

Al Jahraa-9

Development well Al Jahraa-9 was spudded on June 10, 2017, and will target the AR-C reservoir at a location deeper than the current deepest oil penetration at Al Jahraa-4. The primary aim of the well is to demonstrate the connection between Al Jahraa and Al Jahraa South East fields through the oil leg.

The well is anticipated to take approximately 70 days to drill, evaluate and complete as a producer upon success.

Rockhopper Overview

Workover Operations

Production at the El Salmiya-2ST1 well has resumed after the installation of a sucker-rod pump. This operation was deferred from 2016 and two additional workovers, aimed at increasing production, are planned during the remainder of the year.

Current production from the Abu Sennan concession is approximately 3,500 boed gross (approximately 770 boed net to Rockhopper).

Egypt Payments

Rockhopper has recently received a gross payment of $5 million, towards its outstanding receivables balance. This is in addition to the $1.4 million gross received since Jan. 1, 2017.

Under the terms of the acquisition of Beach Egypt, a proportion of any payments received are paid to Beach Energy until their historic receivable position is satisfied.

As at June 12, 2017, Rockhopper’s EGPC receivable balance (net of amounts due to Beach Energy) was approximately $4.5 million (unaudited).

Rockhopper’s cash balance, as at June 12, 2017, is approximately $63 million (unaudited).

(Rockhopper Exploration Press Release)

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