June Banner 2013  
In This Issue
StratoChem Exhibits at AAPG's American Conference & Exhibition
DanaGas Reports Strong Profit Growth for Q1 2013
Tunisia: EnQuest Enters North Africa
Apache Announces Oil & Gas Discoveries in Western Desert
Cepsa Looks to Increase Medgaz Stake
Tarek El Barkatawy Appointed New EGPC Chairman
New SCS Building Shot
Upcoming Events  
  • June 3rd: 3rd Annual Global Gas & LNG Summit 2013 - Port-of-Spain, Trinidad & Tobago.   
  • June 4th: Nigeria Oil & Gas Technology - Lagos, Nigeria. 
  • June 10th: EAGE 75th Annual Conference & Exhibition - London, UK.   
  • June 12th: Equatorial Guinea Gas Conference - Malabo, Equatorial Guinea
  • June 25th: 11th Russian Petroleum Congress - Moscow, Russia 
Ancient Egyptian Inventions We Use Everyday 
We tend to think of ancient Egypt in terms of pyramids and Pharaohs, but many inventions we use on a daily basis first appeared thousands of years ago on the banks of the Nile.

Pens made from Nile reeds first appeared in Egypt around 5000 years ago, used by royal scribes at Saqqara. 

(Photo: Trounce/Wikimedia Commons) 

Massive but effective Egyptian locks first appeared around 4000 BC.

(Photo: Brian Katt/Wikimedia Commons) 

Breath Mints:
Ancient diets were hard on dental hygiene--often causing tooth decay. To combat this, Pharaonic Egyptians made breath mints from cinnamon, myrrh, honey, and frankincense.

(Source: Bilious/Wikimedia Commons)

Specialized Medicine: Ancient Egyptians appear to have been the first culture to divide medicine into different fields based on the body part or system being treated. Specialties included opthamology, dentistry, proctology, and gastroenterology. 

Surgical Tools:
Another Egyptian contribution to world medicine, surgical tools strikingly similar to those still used today are depicted in etchings over 2200 years old at the site of Kom Ombo. 

A version of bowling seems to have been played in Egypt early in the first millennium AD.

(Photo: Mormagil/Wikimedia Commons) 

Ancient Egyptian toothpaste is the first recorded in history. Made from ash, pumice, and ox hooves, it was recently recreated by Egyptologists and found to do a good job cleaning the teeth.

(Photo: Thegreenj/Wikimedia Commons) 
Wigs: Pharaohs and other nobility famously wore fake beards and wigs treated with bees' wax--some of the first in the world.

(Photo: Kaede/Wikimedia Commons) 

While the first archaeological evidence of beer comes from Iraq, Egypt wasn't far behind. Indeed, beer was so important to the ancient Egyptians that it was depicted in hieroglyphics. Making beer was traditionally the work of Egyptian women, who were some of history's first brewers.

(Photo: Giulio Meotti) 

This past May we celebrated Sham el-Nessim here in Cairo, a holiday that goes back to the furthest reaches of Egyptian history.  What began as a Pharaonic celebration of the coming of spring stayed on through the arrival of Christianity and Islam and down to the present--a day for Egyptians from all backgrounds to enjoy the warm weather (the holiday's name literally translates to "Smell the Breeze") and appreciate the possibilities of the season. Here at StratoChem, those possibilities have been more exciting than ever. Not only did we exhibit at the AAPG's American Conference & Exhibition in Pittsburgh this past month, but we're looking forward to a presentation by Dr. Douglas Waples on his revolutionary one-run kinetic technique and the many uses of basin modeling in the exploration process. This presentation will be held on June 6th at 4:00 PM at our Cairo headquarters and is free to attend. We'll also be in London from June 10th-13th for the EAGE's 75th Annual Conference & Exhibition.  Stop by booth 1900 in the ExCel Center if you're in town!


Your Friends at StratoChem Services


Oil & Gas June 2013 Real
StratoChem Exhibits at AAPG's American Conference & Exhibition


ACE Stand StratoChem Services and Sirius Exploration Geochemistry's shared booth at AAPG's American Convention & Exhibition. 

StratoChem Services exhibited at the American Association of Petroleum Geologists' ِAmerican Conference and Exhibition (ACE) this past month from May 19th-22nd. Business Development Manager David Mungo and New Markets Manager Adam Brauner shared a booth with our partner, Dr. Douglas Waples of Sirius Exploration Geochemistry, to better inform upstream companies from all over the world of the usefulness of geochemistry in both conventional and unconventional exploration and production. Over the past few years, many of our newest customers have been American companies working in the United States, and the ACE was a wonderful opportunity both to reconnect with existing clients and make new acquaintances.
DanaGas Reports Strong Profit Growth for Q1 2013

Egyptian flag smallMay 14th, 2013
www.egyptoil-gas.com )


Dana Gas PJSC, the Middle East's largest regional private sector natural gas company, announces its financial results for the first quarter ended 31 March 2013 with a net profit after tax of AED 241 million (US$ 66 million), an increase of 17% as compared to AED 206 million (US$56 million) in Q1 2012. Revenue from the sale of hydrocarbons during Q1 2013 was AED 557 million (US$ 152 million).
Revenues and gross profit declined during Q1 2013, owing to a conservative cash policy towards capital expenditure and a temporary suspension of Liquefied Petroleum Gas ("LPG") production in Kurdistan Region of Iraq ("KRI").
Revenues and gross profits are expected to increase as new discoveries in Egypt are brought to production and upon resumption of LPG production in Kurdistan in June 2013 following completion of repairs to the LPG loading bay.
Commenting on the results, Dr. Adel Al-Sabeeh, Chairman of Dana Gas, said: "Our disciplined approach and long-term business strategy has allowed Dana Gas to achieve an encouraging first quarter while completing the refinancing of the sukuk and posting an increase in net profit. We are committed to expanding regionally and were successful in our bid to be awarded an oil and gas prospecting project in northern offshore Egypt as well as pre-qualifying in Lebanon's first offshore licensing round."
Rashid Al-Jarwan, Executive Director and Acting Chief Executive Officer of Dana Gas, added: "We have had an active start to the year. Egypt and Kurdistan have increased their quarterly production as we brought on stream discoveries, added compression facilities to enhance current production. These developments, combined with the completion of the sukuk refinancing has meant we can approach the rest of 2013 with renewed confidence and ensure our future growth plans deliver value to our stakeholders."
Production and Development
The Group's net production averaged 61,400 barrels of oil equivalent per day (boepd) from its interests in Egypt and the KRI during the three months ended 31 March 2013.
Dana Gas Egypt produced gas, LPG, condensate and crude oil at an average rate of 33,200 boepd in the first quarter of 2013. This is up on Q4 2012 from an average rate of 32,700 boepd aided by West Sama-1 and Allium-1 fields in Egypt commencing commercial production in early March. When both fields achieve full capacity output, they are expected to add 3,450 boepd (20 MMcf/d). 
The Egyptian Bahrain Gas Derivatives Company "EBGDCo" -in which Dana Gas interest is 26.4%- Natural Gas Liquids (NGL) extraction plant at Ras Shukheir, Egypt processed a combined 8163 metric tonnes of Propane (7765) and Butane (398) in Q1 2013.. The average gas flow-rate for the quarter was 90 million standard cubic feet per day (mmscfd) with recovery rates of 98.9 per cent and 99.9 per cent respectively.
Egypt's West El Manzala Concession has seen a number of operational activities completed during Q1 2013. The South Abu El Naga wells, discovered in May 2011 with a reserve minimum estimate of 50 billion standard cubic feet (Bcf) of gas, have completed further well tie-ins. The El Basant gas fields, first discovered in 2009 with an estimated gas reserve of 123 billion Bcf, has finalized the overhaul of its gas compressor units and the Balsam-1 field, the third discovery in 2012, is now ready to start commercial production, with its gas being routed through El Westani gas plant. Together, these operational activities will result in a significant increase in gas production which will directly increase both Dana Gas Egypt and the Group's overall net production figures in 2013.
Kurdistan Region of Iraq
In the Kurdistan Region of Iraq, the Company's 40% share of production in the      Kor Mor Field for Q1 2013 was 27,700 boepd, as compared to 28,500 boepd during the same period last year. However, Production was up 3% on quarter by quarter basis. Production is expected to increase once LPG production is resumed after repairs to the loading bay are complete by the end of Q2 2013.
Daily production reached a peak rate of 88,000 barrels oil equivalent per day (boepd), averaging 80,000 boepd, which includes 340 million cubic feet of gas per day and 15,000 barrels per day of condensate liquids. There are plans for further expansion in investment and production levels, under discussion with the Ministry of Natural Resources.
Exploration & Appraisal
Dana Gas Egypt was a successful bidder in the Egyptian Natural Gas Holding Company 2012 International Bid Round that took place on 18th April 2013. It was awarded 100% working interest in the North El Arish Offshore (Block 6) concession area. Upon completion of the necessary procedures, the concession will be handed over to Dana Gas in Q4 2013, whereby it will start the appraisal process.
The Company has also been pre-qualified as a non-operator in Lebanon's 1st Offshore Licensing Round where 10 deep water exploration blocks are available.
Liquidity and Financial Resources
Group cash balances as of 31 March 2013 stood at AED 1,254 million (US$ 342 million) (31 December 2012: AED 601 million). The significant rise in cash balances follows the one-off proceeds from the partial monetisation of Dana Gas' MOL stake. In February 2013, the Company sold 1.675 million shares, raising AED 495 million (US$ 135 million).
The Company's overall net trade receivables number, as of 31 March 2013, stands at AED 2.3 billion (US$ 625 million).
During the first three months of 2013, the Group collected AED 152 million (US$ 41 million) of receivables in Egypt. Revenue collection is 100% and the trade receivable balance stood at AED 866 million (US$ 236 million) as of 31 March 2013 (31 December 2012: AED 866 million).
In Kurdistan, the Group collected AED 119 million (US$ 32 million) of its 40% share of receivable in KRI. Revenue collection is 56% and the Group's share of the trade receivable balance stood at AED 1,389 million (US$ 375 million) as of 31 March 2013 (31 December 2012: AED 1,298 million).
Sukuk Update
on 8th May 2013 it has completed the refinancing of the US$ 1 billion Trust Certificates (Sukuk-al-Mudarabah) issued by Dana Gas Sukuk Limited. This followed
the overwhelming approvals to the refinancing plan received from both Sukuk Certificate holders and Shareholders on 23 April 2013.  The New Sukuk of US$ 850 million (US$425 million of Convertible Sukuk and US$425 million of Ordinary Sukuk) have been listed on the Global Exchange Market of the Irish Stock Exchange.

Tunisia: EnQuest Announces Entry Into Northern Africa

Tunisian Flag May 29th, 2013  

(Source: www.energy-pedia.com) 


EnQuest has agreed with Swedish oil and gas company, PA Resources and certain of its subsidiaries, to acquire a 70% participating interest in and operatorship of the offshore Tunisian assets of PA Resources, including 2 MMboe of net producing 2P oil reserves in the Didon oil field and over 40 MMboe of net contingent resources in the Zarat field. A further programme of 2 infill wells in the Didon oil field should add additional reserves in the near future. This acquisition is part of the Company's strategy to create value from maturing assets and new developments. PA Resources will retain a 30% participating interest in the offshore permits and 100% of the onshore permits.

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



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.



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.

Apaches Announces Three New Oil & Gas Discoveries in the Western Desert
Egyptian flag small May 13th, 2013
(Source: www.egyptoil-gas.com)

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.

Cepsa Looks To Increase Medgaz Stake
Algerian Flag
May 30th, 2013
(Source: www.petroleumafrica.com)

Cepsa is looking to increase its stake in the pipeline that carries natural gas from Algeria to Spain, the Medgaz pipeline. The Spanish firm is reportedly looking to pick up a percentage of GDF Suez's 12% stake in the pipeline.


According to a Reuters report, GDF Suez is also in talks to sell some of the stake to Gas Natural. Gas Natural already holds a stake in the Medgaz pipeline and is looking to increase it.


Medgaz shareholders have the first right to buy stakes put up for sale by other shareholders.

Tarek El Barkatawy Appointed New EGPC Chairman
Egyptian flag small
May 19th, 2013
(Source: www.egyptoil-gas.com )

Mr. Tarek El Barkatawy is the new Chairman of the Egyptian General Petroleum Company (EGPC). Mr. El Barkatawy has a degree in Petroleum Engineering from Cairo University and over twenty years experience in the Egyptian petroleum sector.  


He formerly held a variety of positions in the private sector for companies such as Weatherford and Circle Oil.   He transtioned to the Ministry of Petroleum in December 2012 and currently serves as First Secretary for Agreements and Exploration at the Ministry of Petroleum.