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Friday, January 30, 2015
Through its subsidiary Mena International Petroleum Co., SacOil saw the successful on time completion of Phase 1 of the field development operations on its Lagia oil field in Egypt’s Sinai. Phase 1 consisted of the successful completion of hydraulic stimulation on all five existing wells.
Operations commenced on January 4 and initial production indications are positive and the company said it is confident that the targeted average production of 350 bpd will be achievable from these five wells once on sustained production.
The oil produced from the Lagia field is trucked to the GPC facilities, which is owned by EGPC. Payments for delivered crude are paid directly to Mena.
Following the successful completion of Phase 1 the wells remain on production and SacOil is preparing and planning a second phase of field development and production optimization to start by June 2015.
The second phase includes the installation of steam facilities for a thermal recovery process on the existing production wells and the drilling of up to five additional thermal wells at the Lagia oil field, with the intent of further enhancing production and the recovery of oil at the field.
Commenting on the completion of Phase 1 Dr. Thabo Kgogo, SacOil CEO, said: “This success of our development operation at the Lagia oil field is a key milestone for SacOil. It marks our transformation from an exploration and production company into realizing revenues from the sale of crude oil. The next phase of our operations at the Lagia oil field will focus on increasing production, as well as maintaining cost efficiencies and profitability during this oil price cycle. The lower oil price environment is something we are obviously following very closely. For the time being our net cash position remains positive and we remain committed to our strategic focus of portfolio rationalization, capital restructuring and overall cost savings.”
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