Seagull Energy Corp., Houston, signed a development lease with state-owned Egyptian General Petroleum Corp (EGPC) to develop the Wadi El Sahl discoveries on Egypt's South Hurghada concession (OGJ, Apr. 28, 1977, p. 88).
Seagull and EGPC each hold a 50% interest in a new operating unit formed to conduct the operation.
Since Seagull purchased the South Hurghada and East Zeit concessions last fall (OGJ, Sept. 30, 1996, p. 33), it has drilled two wells, confirmed the existence of commercial reserves, signed the development plan, and started production from three Wadi El Sahl wells.
At South Hurghada, it plans a seismic program in the third quarter that will cover about 120 sq km, encompassing much of the 109 sq km development area and a part of the remaining exploration concession area.
A program of three to six additional development and exploratory wells will be launched in 1998. If the drilling program is successful, plans call for building additional production facilities and possibly a pipeline from the development lease to the production terminal. Initial production is being taken by tanker trucks 100 km along an existing road to a production terminal operated by Seagull and EGPC.
By yearend, Seagull hopes to be trucking about 4,000 gross b/d of oil. It will build more tanks at the terminal as output steps up in the future.
Copyright 1997 Oil & Gas Journal. All Rights Reserved.
![Seagull's Lease Area [32927 bytes]](http://images.pennwellnet.com/ogj/images/ogj2/9527jnse.gif){kind=link}