By OGJ editors
HOUSTON, Oct. 12 -- Oil Search Ltd., Sydney, bought a 100% interest in Eastern Desert Area A on the west side of the central Gulf of Suez from Geopetrol SA, Paris.
Area A covers two exploration licenses and four development leases totaling 400 sq km. Oil Search expects to assume operatorship of the exploration areas in January 2006 and the development areas in April 2006.
The block has untested potential for deep Nubian horst block plays on the exploration licenses and below five producing fields in the development lease area, the company said. Nubian, a prolific producing formation in the adjacent gulf, is largely untested in Area A.
Oil Search plans to acquire 2D seismic and reprocess extensive 3D data and drill 7 firm exploration wells in the next 3 years starting in late 2006. It plans to drill 8 development wells and perform workovers and recompletions.
The five fields—Kareem, Shukheir, Um El Yusr, Ayun, and Kheir, discovered in 1958-72—produce an average 3,000 b/d. The fields are near production facilities with spare capacity.
After becoming operator, Oil Search will share in incremental oil production from any development or exploration above an undisclosed preset baseline.
Oil Search also holds a 49% nonoperating interest in the East Ras Qattara Concession.
