Vegas Oil & Gas tests Egyptian well

Vegas Oil & Gas SA tested 2,395 b/d of oil and 2.2 MMscfd of natural gas from the Al-Amir SE-3 appraisal well on its North West Gemsa concession in Egypt.

Aug 26th, 2009

Uchenna Izundu
OGJ International Editor

LONDON, Aug. 26 -- Vegas Oil & Gas SA tested 2,395 b/d of oil and 2.2 MMscfd of natural gas from the Al-Amir SE-3 appraisal well on its North West Gemsa concession in Egypt.

The well was sidetracked and delivered 40° gravity oil and gas from 35 ft of net pay from the Kareem Shagar formation through a 32/64-in. choke. Short term testing achieved a rate of 4,938 b/d and 8 MMscfd with a 64/64-in. choke, said Circle Oil, a partner in the well.

The company is still assessing the size of the reserves and is keen to pursue development planning. The well was completed as a potential producer with the testing carried out once the rig, Mubarak-1, moved to drill the Al Amir SE-4 appraisal well.

The North West Gemsa concession, which spans more than 400 sq km about 300 km southeast of Cairo, lies in a partially unexplored area of the Gulf of Suez basin.

The location for appraisal well Al Amir SE-4 potentially is “suitable to be used as an injector to provide pressure support, should that be needed in the future,” said Circle Chief Executive Officer David Hough.

The concession agreement includes right of conversion to a production license of 20 years, plus extensions, in the event of commercial discoveries. Vegas has a 50% interest in the concession with its partner Circle Oil holding a 40% share, and Premier Oil PLC with 10%.

Contact Uchenna Izundu at uchennai@pennwell.com.

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