Rockhopper Exploration plc (AIM: RKH), the oil and gas company with key interests in the North Falkland Basin and the Greater Mediterranean region, is pleased to provide the following operational and corporate update in relation to its Egyptian portfolio.
Current production from the Abu Sennan concession is approximately 3,800 barrels of oil per day (“bopd”) gross (840 bopd net to Rockhopper’s 22% working interest), in line with H1 2018 rates.
The development well Al Jahraa 6 was successful not only in its primary objective as an Abu Roash-C infill oil producer but also encountered good oil shows in the Abu Roash-D, E, G and made a new oil discovery in the deeper Bahariya section. The Bahariya formation was put on test on 22 September 2018 and, after clean-up, is producing in excess of 550 bopd with a stable water cut of 22%. This represents the first commercial oil production from the Bahariya formation within the Abu Sennan concession. The well has been completed to allow potential future production from Abu Roash G and C levels. The Company believes that the Bahariya discovery de-risks additional exploration targets at the same level elsewhere in the concession.
The second Al Jahraa field development well (Al Jahraa-10) of this campaign reached total depth on 16 October 2018 in the Abu Roash-F Formation. Oil pay was calculated in the Abu Roash-C and Abu Roash-D levels. Operations are ongoing to test both levels and put the well into initial production on the most productive horizon.
The Abu Sennan exploration concession amendment agreement has been approved by the Egyptian Parliament under law number 88 of 2018 and was signed by the Minister of Petroleum on 10 September 2018. The first phase of the concession was triggered upon signing of the agreement and has a three-year duration with an expiry date of 9 September 2021.
Exploration well ASZ-1X located on Prospect S was spudded using the rig EDC-53 on 8 November 2018, and will be the first of two commitment wells to be drilled in the first phase of the new concession. The primary objective of well ASZ-1X is the Abu Roash-C reservoir sand that produces in the neighbouring Al Jahraa field. The deeper Abu Roash reservoirs present secondary targets. The well is due to take around 50 days to drill.
Egypt payment situation
Rockhopper continues to experience an improving payment situation in Egypt with a number of payments from Egyptian General Petroleum Corporation (“EGPC”) towards its outstanding receivables balance received in recent months.
As at end October 2018, Rockhopper’s EGPC receivable balance was approximately US$1.9 million (unaudited).
Sam Moody, Chief Executive of Rockhopper, commented:
“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. 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.”
Rockhopper Exploration plc
Sam Moody – Chief Executive Officer
Stewart MacDonald – Chief Financial Officer
Tel. +44 (0) 20 7390 0234 (via Vigo Communications)
Canaccord Genuity Limited (NOMAD and Joint Broker)
Henry Fitzgerald-O’Connor/James Asensio
Tel. +44 (0) 20 7523 8000
Peel Hunt LLP (Joint Broker)
Tel. +44 (0) 20 7418 8900
Patrick d’Ancona/Ben Simons
Tel. +44 (0) 20 7390 0234
Note regarding Rockhopper oil and gas disclosure
This announcement has been approved by Rockhopper’s geological staff which includes Lucy Williams (Geoscience Manager) who is a Chartered Geologist, a Fellow of the Geological Society of London and a Member of both the Petroleum Exploration Society of Great Britain and American Association of Petroleum Geologists, with over 25 years of experience in petroleum exploration and management and who is the qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (“MAR”).