Apex increases Egyptian interests

Jan. 11, 2023
Apex International Energy acquired interests in four concessions in the Western Desert oil producing region of Egypt, adjacent to Apex’s SEM concession, from IEOC Production BV (IEOC), a unit of Eni SPA.

Apex International Energy acquired interests in four concessions in the Western Desert oil producing region of Egypt, adjacent to Apex’s SEM concession, from IEOC Production BV (IEOC), a unit of Eni SPA.

 Apex acquired all IEOC’s interests in the Ras Qattara, West El Razzak, and East Kanayis concessions, with the West Abu Gharadig concession to be acquired after parliamentary approval of extensions expected in first-quarter 2023. Apex will become operator of each through Farah Petroleum Co. (PetroFarah), the joint venture operating company of Apex and the Egyptian General Petroleum Co. (EGPC).

Apex also acquired 25% interest from IEOC in the East Obaiyed concession and will acquire 25% interest in the South West Meleiha concession following an extension, where IEOC will remain operator.

Apex will now own interests in eight Western Desert concessions totaling 1.0 million acres (4,100 sq km). The company will operate six of the eight concessions, and six of the eight concessions are currently producing. Apex will be partnered with IEOC in three of the eight concessions.

Apex produces about 7,000 b/d at SEM and has drilled a total of 25 wells since December 2020, of which 17 are currently producing. With the concession interests purchased from IEOC, Apex’s combined working interest production in the Western Desert is expected to approach 11,500 b/d. The company expects to begin its first natural gas production in second-quarter 2023 when the Faramid Development Lease in the East Obaiyed concession comes come online. There are two natural gas discoveries in the concession.