Hibiscus Petroleum, Pacific Oil Awarded Block 2 Concession in Egypt

Hibiscus Petroleum has been awarded the South East Ras El Ush concession (Block 2) in Egypt.

The award was made pursuant to the successful submission of a bid by Gulf Hibiscus, together with its partner, Pacific Oil, for a joint equal ownership of the concession. Pacific Oil will be the operator of the concession, the company said.

Ganoub El-Wadi Petroleum Holding Company (Ganope), an entity of the Ministry of Petroleum, on Monday announced the result of an international bid round for the search for oil and gas.

Block 2 is an offshore exploration block located in the southern Gulf of Suez, the most prolific petroleum province in Egypt. The block covers an area of 68 sq kms with water depth of up to 75 metres, and is surrounded by development leases. The block also contains the discovered West Ashrafi field and may be developed with a production tie-in to the nearby existing onshore infrastructures. Two wells previously drilled in the West Ashrafi field had tested commercial oil and gas.

The award is subject to the execution of a definitive agreement. Gulf Hibiscus’ financial exposure to undertake the minimum work commitment is estimated to be approx. $8 million over the first four years (first exploration phase).