Rockhopper Exploration Plc (LON:RKH) shares edged higher in early dealing on Monday after it told investors that production from the Abu Sennan concession measured 3,800 barrels of oil per day, giving the AIM-quoted company 840 bopd net for its 22% stake in the project.
In a broader update on the company’s Egyptian portfolio, Rockhopper noted that the Al Jahraa 6 had been a success - as a producer in the Abu Roash-C interval whilst also encountering ‘good’ oil shows in the D, E, and G intervals, and discovering oil in the deeper Bahariya section.
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The Bahariya discovery is producing at a rate of 550 bopd, marking the first commercial oil production from the formation.
Rockhopper added that it believes that the Bahariya discovery de-risks additional exploration targets at the same level elsewhere in the concession.
"We are delighted to have made real progress with this drilling programme in Egypt and particularly to have produced commercial volumes of oil from the Bahariya formation for the first time,” said Sam Moody, Rockhopper chief executive.
“With an improved payment situation as well, we are pleased with recent activities on our Egyptian acreage, and we look forward to the rest of the ongoing exploration programme."
It was also confirmed that the Al Jahraa-10 field development well has been drilled into the Abu Roash-F, and also encountered oil pay in the C and D levels too. Testing operations are ongoing, ahead of production start-up from the well’s most productive horizon.
Exploration efforts are now underway at the Abu Sennan concession, where the ASZ-1X well is targeting Prospect S area on November 8. It is the first of two commitment wells in the concession’s first exploration phase.
The well’s primary objective is the Abu Roash-C reservoir sand along with the deeper Abu Roash reservoirs.
Rockhopper additionally told investors that the company continues to experience an improving payment situation in Egypt, with a number of payments received from the Egyptian General Petroleum Corporation towards the company’s outstanding receivables balance in recent months.
At the end of October, some US$1.9mln was due to Rockhopper by EGPC.