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Wednesday, August 17, 2016
Rockhopper Exploration completed its acquisition of Beach Petroleum (Egypt). Beach Egypt holds a 22% interest in the Abu Sennan concession and a 25% interest in the El Qa’a Plain concession.
Rockhopper acquired Beach Egypt for a cash consideration of $11.9 million based on a cash effective date of January 1, 2016. The stakes will result in the company seeing an average working interest production rate of approximately 1,100 boepd and substantial upside potential.
Recent activity on the Abu Sennan concession includes the successful drilling of the Al Jahraa SE-1X oil exploration well which intersected 16.4 meters of net pay. The Al Jahraa SE-1X well has been cased and completed and is expected to be brought onto production imminently following signature of a new development lease. Initial estimates are that the well would add approximately 2 million boe to the gross 2P reserves recoverable from the Abu Sennan concession.
In order to complete drilling and fully evaluate the results of the Al Jahraa SE-1X well, an extension of the exploration concession has been granted to November.
In addition, the ASH-1X ST2 side track oil development well is currently being drilled with the aim of improving productivity from the ASH field.
Separate to the acquisition, Rockhopper is currently evaluating potential opportunities available through one of the licensing rounds Egyptian state-run companies are hosting in 2016.
Sam Moody, CEO of Rockhopper, said “We are delighted to announce the completion of this strategically important acquisition which materially increases our exposure to low cost, cash generative production assets. Unit cash operating costs at Abu Sennan during H1 2016 were approximately $8 per barrel.
“With the recent exploration success at the Al Jahraa SE-1X well, combined with the increase in estimated 2P reserves, we are delighted to be retaining the entire 22% interest in Abu Sennan.”
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