Western Desert \u2013 South Ghazalat (100% WI)<\/p>\n
The recompletion of SGZ-6X well to the deeper, more prospective lower Bahariya reservoir has been concluded. The well commenced production on March 21, 2021 at a field-estimated production rate of ~3,600 Bopd of light oil on a 32\/64-inch choke with 0% watercut.<\/p>\n
As planned, on March 22, 2021 the well was restricted to a field-estimated ~1,000 Bopd of light-oil on a reduced choke to facilitate reservoir data gathering and the preparation of an effective reservoir management plan for the lower Bahariya at this location. The Company will provide a further update on South Ghazalat once this plan has been developed.<\/p>\n
Work to expand the early production facility at South Ghazalat has been completed.<\/p>\n
Eastern Desert (100% WI)<\/p>\n
The EDC-64 rig has now rigged down at SGZ-6X and is mobilizing to the Company\u2019s Eastern Desert concessions where operations on the budgeted twelve well 2021 drilling program are expected to commence in April 2021.<\/p>\n
CEO\u2019s Statement<\/strong><\/p>\n \u201cWe are excited to announce the successful recompletion of SGZ-6X into the lower Bahariya reservoir at our South Ghazalat concession. Prudent reservoir management in the short-term will ensure optimal resource development and maximize future value for shareholders. This approach will allow us to maximize future economic off-take from SGZ-6X, firm up the appraisal of this pool with SGZ-6A and optimize our exploration plans on the SGZ-7B prospect. At this time these operations are still planned for 2022, but may be revisited mid-year, depending on oil prices and other corporate priorities including direct shareholder returns.<\/em><\/p>\n