By OGJ editors
HOUSTON, Nov. 26 -- Egypt has selected Centurion Energy Corp., Calgary, as successful bidder for a 100% working interest in Block 2 in the Kom Ombo basin north of Aswan in southern Egypt.
Kom Ombo is a rift basin analogous to the Muglad basin, source of Sudan's oil production.
The block covers 5.6 million acres with numerous seismically defined leads that Centurion said hold potential for significant oil reserves.
Centurion has committed to spend $2 million in the first 2-year exploration phase to reprocess 1,000 km of 2D seismic data, reenter and test the Kom Ombo-1 well, and run geological and geochemical studies. Formal license agreements are being prepared.
A previous operator drilled Kom Ombo-1 in 1997 and tested light oil at 8,150 ft from a good-quality early Cretaceous sandstone reservoir, indicating the presence of a petroleum system, Centurion said. Kom Ombo-2 encountered significant oil and gas shows in the same reservoir in 1998.