Rockhopper Exploration PLC (LON:RKH) told investors that its Egyptian operation remains stable, producing around 3,300 barrels of oil equivalent per day in the first half of 2017, and it gave details of well programmes in the country.
The AIM-quoted oiler, which has flagship assets in the Falklands, has a 22% stake in the Abu Sennan concession which includes six oil and gas fields.
It updated investors on two wells at Abu Sennan, Al Jahraa-9 and Al Jahraa SE-2X.
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Al Jahraa-9 penetrated some 5 metres of reservoir sand in the targeted Abu Roash-C (or AR-C) reservoir, but it was found to be ‘water wet’ at this location. At the same time, the well also encountered deeper oil shows in the Abu Roash-D and Abu Roash-E zones – and it said that these results point to additional exploration potential elsewhere in the concession.
Al Jahraa SE-2X was successfully side-tracked into the field, the company said, with oil pay in confirmed in logging for both the AR-C and AR-E reservoirs. It was put into production, in AR-E, with equipment constrained flows measuring 250 barrels of oil equivalent per day.
The company also noted that the payments outstanding for past sales continue to reduce, with additional back payments received in July.
"We are pleased with the overall progress in Egypt and, in particular, with the continuing reduction in our receivables balance,” said Sam Moody, Rockhopper chief executive.
“While it is disappointing that the Al Jahraa-9 well was water wet, the deep oil shows are an encouraging indication of the additional potential at these deeper levels in other areas of the concession.
“Furthermore, with the Al Jahraa SE-2X well having now been completed as a producer, we believe that a well-constructed water flood programme would have the potential to significantly enhance recovery factors achievable at the Al Jahraa field."