Continental Focus, International Reach

Rockhopper Updates Abu Sennan

Tuesday, November 13, 2018

Rockhopper Exploration updated its activities on Egypt’s Abu Sennan concession. Currently the concession is producing at a rate of around 3,800 bpd of oil, which is in line with H1 rates.

The company participated in drilling the development well, the Al Jahraa 6. The well 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 in late-September and, after clean-up, is producing in excess of 550 bpd 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, the Al Jahraa-10 well, reached a total depth on October 16 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 September 10, 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 September 9, 2021.

Exploration well ASZ-1X located on Prospect S was spudded using the rig EDC-53 on November 8, 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 neighboring Al Jahraa field. The deeper Abu Roash reservoirs present secondary targets. The well is due to take around 50 days to drill.

Rockhopper continues to experience an improving payment situation in Egypt with a number of payments from EGPC towards its outstanding receivables balance received in recent months. At the end of October Rockhopper’s EGPC receivable balance was approximately $1.9 million.