The permit, awarded late last year, is in shallow waters in the Gulf of Suez, 300 km (186 mi) southeast of Cairo. It contains the producing Shukheir Bay and Gamma oil fields.
On Shukheir Bay, the SHB-5 well entered service in 2006 and has produced more than 1.1 MMbbl of oil to date from the Upper and Lower Rudeis sands. It operates under a jet pump artificial lift system and recently averaged more than 380 b/d.
A workover has been completed to replace a corroded tubing string and the well is now back in production, cleaning up kill fluid. Once all workover fluids have been recovered the company hopes to restore output to pre-workover levels of 500 b/d.
On the Gamma #1 well the company plans an acid stimulation treatment that could lift production by 100 b/d.
In addition, it is looking at exploratory drilling opportunities in the Gamma concession, focusing on the prolific Nubia Formation, and on the Shukheir Bay field Upper and Lower Rudeis formations.