Project Profile

Value: Undisclosed
Location: onshore in the Western Desert of Egypt, in Alamein and Tiba basins, Egypt
Production: 1,700 bpd
Reserves: Unknown
Area: 1,423 square kilometres (355,832 acres)
Start-up Year: -

In June 2012, TransGlobe acquired a company with a 50% non operated working interest in the South Alamein Concession. In July 2012, TransGlobe acquired a company with the remaining 50% operated interest and the Company now holds 100% working interest of this concession. The South Alamein Concession is located onshore in the Western Desert of Egypt and includes portions of the prolific Alamein and Tiba basins. The current gross size of this exploration concession is 1,423 square kilometres (355,832 acres). The concession is in the final 2 year exploration phase. The concession includes an oil discovery well, Boraq-2X.

The primary Cretaceous zone tested at a rate of 800 to 1,323 bopd of 34 API oil with no water and a 13% pressure drawdown during a 28 hour drill stem test (DST). A secondary Cretaceous zone tested at a rate of 274 Bopd of 32-35 API oil and 4% water during a 23 hour DST. Test rates are not necessarily indicative of long-term performance but it is anticipated that the well should be capable of producing approximately 1,700 Bopd. Initial work by TransGlobe will focus on appraisal and development of the Boraq–2X oil discovery which includes drilling at least two appraisal wells and readying the Boraq–2X well for production. The Boraq-2X discovery is close to existing infrastructure which should reduce development time and capital. An extensive 3-D seismic acquisition program was acquired over the entire South Alamein Concession area. TransGlobe’s technical team has identified a number of leads on the remaining exploration acreage that are being progressed to drill-ready prospects.

The South Alamein Concession production sharing terms are as follows: cost oil of 30%, sharing of profit oil with 14% to the Contractor, 86% to the Government of Egypt, with 100% excess cost recovery oil to the Government. Capital investments are amortised over five years and operating costs are fully recovered in the quarter incurred and paid. All taxes and royalties are paid out of the Government’s share of profit oil.

Operators:

TransGlobe: Operator with 100% interest