Production is up sharply at operations in Egypt and Pakistan as part of an ongoing program to maximize value at Citadel Capital's heavy oil platform
The National Oil Production Company (NOPC), Citadel Capital’s Platform Company in the heavy oil sector, and subsidiary Rally Energy have announced a 55% increase in total production since December 2009 to 5,200 barrels of oil equivalent per day (BOEPD) across both its Egyptian and Pakistani assets.
In Egypt, the Issaran field operated by Scimitar Production Egypt Ltd., a fully owned subsidiary of NOPC, recorded progress on a number of fronts in recent months. Production from the field has increased from 3,000 BOPD in December 2009 to its current level of 4,000 BOPD. This strong increase is a direct result of key achievements made by NOPC’s management team on enhancing the Steam and Zeit Sands production. The core production component, steam production, has risen to 2,400 BOPD from a previous level of 2,000 BOPD at the end of December 2009.
“We have reason to believe that the steam flooding method that we started to employ six months ago is showing initial signs of success and is expected to open over the next period potential for exploitation of the reserves base,” said NOPC Chief Reservoir Officer Dr. Mohsen Rizkallah.
Moreover, since drilling the first successful pilot well in the Zeit Sands formation in August 2009, the company has drilled eight new Zeit Sands wells that are now producing 550 BOPD. NOPC has planned for a 20-well Zeit Sands development and expects to have these wells ready by the beginning of April 2010, which will serve to further enhance Issaran’s production level.
“Management also believes they have found the right solution to revive production from the Nukhul wells through a water shut-off program. This program has seen the water cut in the first test well fall to 60% from 100% with a resulting production range of between 70-90 BOPD from one well,” said NOPC Chief Executive Officer Mohamed Farid, adding, “NOPC’s management team will continue to explore means of optimizing production.”
“I also note that we have significantly reduced NOPC’s outstanding hedge position to a level that is below current production, thus allowing the company to realize the upside we are seeing from the recent increase in Brent prices, leaving the remaining hedge risk very manageable,” said Citadel Capital Managing Director Shereef El-Prince.
At the Pakistani operation, production has risen to 25 million cubic feet per day (MMCF/D) up from 8 MMCF/D on the back of a successful workover job on well Dewan 5A. “A side-track for well Dewan 3, is expected to be completed by the end of the third quarter of 2010, which is also expected to boost production,” noted Farid.
“We are delighted with the recent rise in production on all fronts at both the Egyptian and Pakistani assets — and equally pleased with NOPC’s ability to now benefit from the recent increase in Brent prices,” concluded El-Prince.
The National Oil Production Company (NOPC) is a Cairo-based upstream oil and gas exploration and production company with a MENA footprint. In 2007, NOPC acquired 100% of Canada’s Calgary-based Rally Energy, which has a 100% operating interest in the Issaran oil?eld, a significant heavy oil development opportunity in Egypt. Rally also holds a 30% stake in the Safed Koh block in Pakistan, where it is participating in the development of a natural gas discovery. NOPC is a Citadel Capital platform company with paid-up capital of US$ 626 million.
Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity firm focusing on building regional platform investments throughout Africa and the Middle East in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity Specific Funds. Citadel Capital’s 18 OSFs now control Platform Companies with investments worth more than US$ 8.3 billion in 14 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, the firm has generated more than US$ 2.4 billion in cash returns to its co-investors and shareholders, more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2004-2009, as ranked by Private Equity International). For more information, please visit www.citadelcapital.com.
For more information, please contact:
Ms. Ghada Hammouda
Head of Corporate Communications
Citadel Capital (S.A.E.)
g...@qalaaholdings.com (click to reveal this email)
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