May 14th, 2013
(Source: www.egyptoil-gas.com )

May 29th, 2013  

(Source: www.energy-pedia.com) 

The acquisition will be effective upon satisfaction of certain conditions precedent, and involves upfront cash consideration of US$23m payable upon completion of the transaction. EnQuest has also offered carry consideration of up to US$93m payable following its sanctioning of the Zarat field development. Additional consideration of up to US$133m is payable in relation to the potential developments in the Zarat and Elyssa fields if the capital cost of 2P reserves is to be no greater than $18/boe, with the top end of the range of such additional consideration achievable if such capital costs are to be no more than $13/boe or upon achievement of certain project revenue targets. The maximum amount of consideration above the initial US$23m completion payment will not exceed US$226m.

EnQuest's CEO Amjad Bseisu said:

'I am pleased to announce our first international production acquisition giving us an operating platform in Tunisia. I am also pleased to have PA Resources as a partner in the Didon oil field and the potential developments at Zarat and Elyssa, with over 100 MMboe of gross contingent resources and additional exploration and appraisal opportunities. This opportunity is ideal for EnQuest and our new partners, allowing us to deploy our operating and development expertise in these Permits and also adds 2 MMboe of net 2P reserves, 41 MMboe of contingent resources, and approximately 1,000 Boepd net to EnQuest with additional production and 2P reserves coming from a two well in-fill drilling programme in the Didon field in the near future.'

Further Information on the Transaction

The transaction provides for EnQuest to assume a significant part of PA's current organisation in Tunisia. Completion of the transaction is subject to a number of conditions precedent, including (in relation to the acquisition of an interest in the Zarat Permit) all necessary approvals by relevant authorities and the government of Tunisia. The economic date of the transaction is 1 January 2013.

Additional Background Information on the Assets

All three fields are located in the Gulf of Gabes, offshore Tunisia.

Didon Oilfield

Didon is located 70km offshore Tunisia, in a water depth of 70m. The field was discovered in 1976, with first oil in 1998 and production to date of 31 MMboe. Current daily production is around 1,400 Boepd. Didon is a mature offshore oil field with a good quality reservoir and with a current watercut of approximately 60%. Further field development is planned including a two infill well programme.

Zarat Permit: The Zarat and Elyssa Discoveries

Zarat

Located 80km offshore, in 90m water depth. Discovered in 1992, it is an undeveloped offshore oil and gas condensate discovery in moderate permeability fractured limestone.

Elyssa

Located 50km offshore in 50m water depth. Discovered in 1975, it is a dry gas discovery in both the Bireno and Cherahil reservoirs.

There are commitments to drill one appraisal well at Elyssa, and one exploration well in the Zarat Permit area.

Historical Financial Information

The carrying value at 31 December 2012 of the gross assets subject to this transaction was $145.6m with associated profit before tax for the year then ended of $21.3m.

Apache Corporation announced drilling success with three new discovery wells in Egypt's Western Desert.  

"Apache's discoveries, made in three separate basins, highlight the company's diverse potential for new oil and gas developments across its concessions. This exploration success extends the company's production base to the northeast at the North Ras Qattara Concession and to the southwest in the Siwa Concession," said Thomas M. Maher, Egypt Region vice president and general manager. "We operate in the most remote areas of the country, and have for 20 years. Our exploration and production activities continue without interruption. During the first quarter we maintained a very active drilling pace, operating on average 26 rotary rigs every day during the period."

The discoveries include:

• The NRQ 3151-1X, an Alamein Basin discovery located in the North Ras Qattara Concession, test-flowed at a combined rate of 1,625 barrels of oil and 18.7 million cubic feet (MMcf) of natural gas per day from two intervals in the Jurassic Lower Safa Formation, the deepest production established to date in the Western Desert producing province. Logging operations confirmed 100 feet of pay sands were encountered in multiple zones, including the Cretaceous Upper Bahariya, the Jurassic Zahra, the Upper Safa, and the Lower Safa. Appraisal drilling is planned for later in 2013, along with an offset Jurassic play and a shallower Bahariya well. Apache has a 70 percent operated interest in the North Ras Qattara Concession with IPR holding the remaining 30 percent.
• SIWA L-1X, located in the Siwa Concession within the Faghur Basin, tested at a rate of 2,041 barrels of oil per day from the lower-most portion of a thick Paleozoic Desouky pay sand. The exploration well is located four miles south of the closest currently producing well in the basin. The discovery well encountered 123 feet of hydrocarbon pay in the Cretaceous Alam el Buieb (AEB-3E), AEB-5, Jurassic Safa, and the Desouky zones. Production is expected to commence following government approval of a development lease. In addition to extending the productive fairway of the Faghur Basin, this discovery also sets up a number of analogous prospects for drilling later in 2013. Apache is the operator and has a 50 percent working interest in the Siwa Concession with the state-owned Tharwa Petroleum Company also holding a 50 percent working interest.
• NTRK-G-1X, an exploratory well located in the North Tarek Concession within the Matruh Basin, encountered 60 net feet of Upper Safa hydrocarbon pay and tested at 14.8 MMcf of natural gas and 1,522 barrels of condensate per day. This Jurassic Upper Safa discovery extends the productive fairway found two miles to the northeast. A gas gathering system is currently being installed in this area by Khalda Petroleum Company, the joint venture operating company owned by Apache and the Egyptian General Petroleum Corp., and is expected to be completed in the third quarter. Apache has a 100 percent working interest in the North Tarek Concession.

Maher also noted a deep backlog of drilling opportunities, and that the stacked-pay potential with Apache's Western Desert concessions reduces the risks associated with drilling wells in new areas.  

Exploration wells in the western desert also can be relatively inexpensive to drill, with the NRQ 3151-1X, SIWA L-1X, and the NTRK-G-X costing $7.6 million, $3.7 million, and $4.4 million, respectively, to drill, run casing and test. The company also has been successful in reducing operating costs by implementing new well designs for more efficient production.

Apache is the most active oil and gas driller in the Western Desert and is the country's leading producer of crude oil and among the top-ranked natural gas producers.