Thursday 19 backend.Sep
A recent oil discovery in Egypt has shown promising results during flow rate testing, indicating its potential for commercial production. This significant milestone is expected to contribute to a boost in the country's oil and gas output, according to a report by a specialized energy platform on the latest developments in the first horizontal well drilled by the Canadian company TAG Oil in the Badr oil field in Egypt's Western Desert.
The company has made substantial progress with the horizontal well "BED 4-T100," known as "T100," which targets the unconventional Abu Rawash reservoir in the Badr oil field (BED-1) in the Western Desert.
The total oil produced from the
"T100" well has reached more than 12,000 barrels, up from 10,000
barrels announced by the company in July 2024.
Following backflow operations in
April 2024, TAG Oil undertook a cleanup process for the "T100" well
using coiled tubing, along with the installation of an artificial lift system
with a jet pump, to establish a stable flow from the well.
Intermittent oil production has
continued, producing crude oil and discharging fracturing fluid, and the
company is shipping the oil to nearby processing facilities."
TAG Oil is making significant
progress in its Egyptian operations. They are:
-Building a new oil delivery
station: This will streamline the transportation of extracted oil.
-Increasing oil production: The
company has successfully increased production from existing wells and plans to
further enhance it.
-Drilling new wells: TAG Oil is
preparing to drill a new horizontal well, leveraging the knowledge gained from
previous projects.
-Transporting oil: The company is
actively transporting extracted oil to processing facilities.
-Expanding operations: TAG Oil is
committed to expanding its operations in the Abu Roash reservoir.
TAG Oil is optimistic about the
future of its Egyptian operations and is working to maximize the value of its
assets in the region. TAG Oil is also making progress on potential strategic
partnerships and acquisition opportunities in Egypt, while continuing to manage
its costs and allocate resources to develop the Abu Roash reservoir in the Badr
oil field.
According to information from the
specialized Energy Platform, these efforts aim to drive growth in multiple
areas, including the Abu Roash reservoir, to expand TAG Oil's footprint in the
Western Desert.
Additionally, the company is
exploring other potential strategic acquisition opportunities in the broader
Middle East and North Africa region, targeting both conventional and
unconventional oil and gas potential.
This confirms the previous
statement by TAG Oil CEO Toby Pierce, who said, 'We are also developing a
number of business modernization efforts to increase our footprint in this
region of Egypt, and we have other initiatives underway in the broader Middle East
region.'
In related news, TAG Oil
announced its financial results for the second quarter ended June 30, 2024.
According to figures monitored by the Energy Platform, the company held CAD 7.7 million ($5.7 million) in cash and cash equivalents, compared to CAD 12.7 million ($9.4 million) on March 31, 2024, and CAD 7.3 million ($5.4 million) in working capital, compared to CAD 9.4 million ($7 million) on March 31, 2024, and had no debt.
