Two Independents Join Forces on the South Disouq

Tuesday, August 19, 2014

Sea Dragon Energy Inc. and IPR Energy Resources, both independent operators in Egypt, have entered into an agreement that has Sea Dragon farming out a 45% participating interest in the South Disouq Concession to IPR.

Under the terms of the agreement IPR will carry the cost of the first phase commitment well, subject to a cap, pay $1.9 million of the signature bonus, fund its proportionate share of the remaining work program, and will have the option to operate the commitment well.

The South Disouq concession covers 1,275 sq km in the Nile Delta and is anticipated to contain significant gas potential.  It is located within the prolific Abu Madi-Baltim trend, which currently contains 10 discoveries, containing 6.3Tcf of natural gas and 100 million barrels of liquids.

This agreement remains subject to final approval by the regulatory authorities in Egypt . Post approval, Sea Dragon will have a 55% interest in the concession, with IPR holding the remaining 45%. Sea Dragon will continue to be the operator.

Commenting, Paul Welch, CEO of Sea Dragon, said: “This agreement is an important milestone for the development of the South Disouq concession, which in itself is a key asset for the Company, representing significant exploration upside potential in an area the Sea Dragon management team have had proven success.   The farm-out will also provide Sea Dragon with the financial flexibility to continue to develop and invest resources across our wider Egyptian asset base. We look forward to working with IPR to explore for the significant potential within this concession.”

« GO BACK

You may also like

" alt="Sintana to Expand Asset Base in Namibia with Acquisition">

Sintana to Expand Asset Base in Namibia with Acquisition

" alt="Luanda Gives Afentra Nod for Azule Acquisition">

Luanda Gives Afentra Nod for Azule Acquisition

" alt="TotalEnergies Increases Stake in ROC’s Giant Moho Field and Sells Mature Assets">

TotalEnergies Increases Stake in ROC’s Giant Moho Field and Sells Mature Assets

" alt="Africa’s $824 Billion Debt Burden and Opaque Resource-Backed Loans Hinder its Potential">

Africa’s $824 Billion Debt Burden and Opaque Resource-Backed Loans Hinder its Potential

" alt="African Refiners Ponder Threats to Energy Security for Africa as Transition Takes Center Stage">

African Refiners Ponder Threats to Energy Security for Africa as Transition Takes Center Stage

" alt="Invictus Inks Gas Sales MOU to Deliver Power to Eureka Gold Mine">

Invictus Inks Gas Sales MOU to Deliver Power to Eureka Gold Mine

" alt="Globeleq Acquires the 25 MWp Winnergy Solar PV Plant in Egypt">

Globeleq Acquires the 25 MWp Winnergy Solar PV Plant in Egypt

" alt="Sintana Completes Well Testing at Mopane 1-X in Namibia">

Sintana Completes Well Testing at Mopane 1-X in Namibia