Apex acquires interest in four Egyptian concessions
Apex International Energy has acquired interests in four concessions in the Western Desert region of Egypt from IEOC Production, a unit of Italy’s Eni, it said on January 10.
The Egypt-focused company will acquire two additional concessions after parliamentary approval of extensions, which is expected in the first quarter of 2023.
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Apex acquired all of IEOC’s interests in the Ras Qattara, West El Razzak and East Kanayis concessions, with the West Abu Gharadig concession to be acquired following an extension, and will become operator of each through Farah Petroleum Company, the joint venture operating company of Apex and the Egyptian General Petroleum Company.
Apex also acquired a 25% interest from IEOC in the East Obaiyed concession. It will acquire a 25% interest in the South West Meleiha concession following an extension, where IEOC will remain the operator.
The acquisition is being financed in part through a senior secured borrowing base facility arranged by The Mauritius Commercial Bank, Apex said.
In addition, Apex and IEOC were recently awarded the East Siwa exploration concession in the Western Desert, each with 50% interest with Apex as operator. The East Siwa concession agreement has been approved by EGPC and is expected to be approved by the parliament and signed into law in the second quarter of 2023.
Apex has discovered four new fields in its existing South East Meleiha (SEM) concession since January 2021 and plans additional exploratory drilling in SEM in 2023.
These newly acquired assets are located adjacent to Apex’s SEM concession. Apex will now own interests in eight Western Desert concessions totaling 1mn acres (4,100 km2). Apex 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 said it has grown its existing production in SEM to approximately 7,000 barrels/day since production start-up in August 2021, with a total of 25 wells drilled 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 barrels/day.
Apex also expects to start its first natural gas production during the second quarter of 2023, when the Faramid Development Lease in the East Obaiyed concession is projected to come online. There are two natural gas discoveries in the concession, and IEOC has been progressing with development plans with EGPC, Apex said.