Egypt - Lagia Oil Field
Operator: PetroSinai 1
Group company holding interest: Mena International Petroleum Company Limited (“Mena”) – 100%
Size: 32 square kilometres
1 PetroSinai is a company established by Mena and the Egyptian General Petroleum Corporation (“EGPC”) to operate the Lagia Oil Field, in accordance with Egyptian Law 11 of 1997.
Onshore block located on the Sinai Peninsula, Egypt, directly adjacent to the Gulf of Suez.
Nearest town: Ras Sudr
Geological features: Extensional rift system. The Gulf of Suez is a Tertiary graben separating the central Sinai massif from the Eastern Desert. The basin is dominated by northwest-southeast trending faults. The producing Nukhul formation is lower Miocene in age and unconformably overlies the Eocene Thebes formation. In the Lagia Oil Field, the Nukhul formation consists of five sandstone lobes interbedded with mudstones. These zones are typically fine to medium grained and cemented with calcareous cement.
The Lagia Development Lease was granted to Mena in 2010. Mena became a wholly-owned subsidiary of SacOil on 22 October 2014 (“Acquisition Date”) through the acquisition of all outstanding shares.
Licence period: 2010 to June 2020, with a renewal option until 2025.
Permits were obtained from EGPC for drilling all existing production wells. There is a reasonable basis to believe that all
permits required to drill future wells will be obtained.
Material environmental risk factors
- Uncontrolled release of well fluids (mixture of oil and water)
- Release of natural gas into the atmosphere
- Produced oil contains no dissolved gas and there is currently no associated gas production
Development of the Lagia Oil Field and production of oil from the field.
Studies undertaken: Interpretation of existing 2D seismic data and analysis of all geophysical well log data.
Expenditure to date: R7.3 million (since Acquisition Date)
The Group has the legal entitlement to the minerals and asset being reported on and there are no legal proceedings or other material conditions that may impact the Group’s ability to continue operations.