RKH has announced an Egypt update this morning and progress is certainly being made in the ‘Greater Med’. At Abu Sennan production is being maintained at 4/- boe/d gross, net 880 to RKH. They have also announced the drilling campaign for the summer which comprises exploration and development wells and a water injection programme.
The rig is mobilising and should spud the first of two development wells by the end of June. This will be followed by the second and then the exciting exploration well on ‘prospect S’ which is targeting the Roash reserves as at Al Jahraa. There is also water injection programme at the Al Jahraa field ongoing. This programme is planned to take around six months with total capex net to RKH of $3m.
At El Qa’a the Raya-1X spudded on 17/06 targeting the Nukhul Formation reservoir, here the net cost is less than $1m. The market’s eyes may be focused further south but the Greater Med is an important part of RKH’s strategy as it pays the G&A keeping the powder dry for Sea Lion
Financially the situation in Egypt is improving all the time, with EGPC making ‘a number of payments’, recoverables are falling and now only $2.2m. With the oil price steady enough here and the Sea Lion economics looking robust ali is looking good for RKH and patience should be rewarded.
I don’t normally do an and finally in a flash blog but it’s not normally the day after an England win in the first match of a World Cup campaign and the start of Royal Ascot!