Project Profile
Value: Undisclosed
Location: Western Desert, along the Mediterranean coast line, southwest of the city of Alexandria, Egypt
Reserves: Unknown
Area: 3,350 square kilometres (828,000 acres)
Start-up Year: -
In June 2012, TransGlobe acquired a company with a 60% operated working interest in the Concession in Egypt’s Western Desert, with the remaining 40% interest hold by private shareholders. The current gross size of this exploration concession is approximately 3,350 square kilometres (approximately 828,000 acres). It is an onshore block running along the Mediterranean coast line, adjacent to prolific offshore hydrocarbon fields and southwest of the city of Alexandria. The southern boundary of the South Mariut Concession is approximately 20 kilometres north of the South Alamein concession. The South Mariut Concession is in the first, two-year extension period which expires on April 5, 2013. A further two-year extension is available under the production sharing contract.
The concession joint venture partners have acquired over 1,200 square kilometres of 3-D seismic over the original area and executed several studies supporting the prospectivity of the South Mariut Concession area. The joint venture partners have approved a US$9.6 million exploration well (Al-Azayem -1) for 2012. The partners have received all the necessary well permit approvals and are in discussion with several contractors to supply a 2,000 horsepower drilling rig. The well is targeting several stacked horizons with four-way closures identified on 3-D seismic, with total depth expected at approximately 14,500 feet in Jurassic-aged strata. TransGlobe has internally estimated a combined undiscovered 236 million barrels of Petroleum Initially in Place on a probabilistic P-mean basis for this prospect.
The South Mariut Concession production sharing terms are as follows: cost oil of 35%, sharing of profit oil with 18% to the Contractor, 82% to the Government of Egypt, with 100% excess cost recovery oil to the Government. Capital investments are amortized 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.
Transglobe relinquished the South Mariut concession in June 2013.
Operators:
Private Shareholders: 40% interest