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Monday, September 21, 2015
SacOil Holdings, through its subsidiary in Egypt, Mena International Petroleum Company, saw the commencement of phase 2 of field development operations at the Lagia oil field in Sinai. The second phase includes the installation of steam facilities for a thermal recovery process on the existing production wells and the drilling of a minimum of five additional thermal wells with the intent of further enhancing existing production and the recovery of oil from the field.
SacOil procured a steam generator earlier this year and confirmed that the generator arrived on site on September 4. Commissioning and operational testing is currently under way and the company is to commence full-scale steaming by the end of the month.
Initial steaming will focus on the existing production wells, which are currently producing oil from cold flow only. It is anticipated that each well will be steamed and allowed to soak for a number of days before starting production. The commencement of phase 2 also coincides with the drilling of a minimum of five additional wells. The drilling of Lagia 11 to 15 will start in mid-October 2015. Aligning the steaming process with the additional drilling program presents an ideal scenario to optimize the use of on-site resources and test the potential upside of the field, which is in line with the company’s strategy to fast-track the development of the Lagia oil field to production of above 1,000 bpd.
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