SacOil Announce Completion Of Phase 2 Development Programme – Lagia Oil Field

SacOil, aSouth African based independent African oil and Gas Company, announced the successful completion of Phase 2 of their development programme at its 100% owned Lagia oil field in Sinai, onshore Egypt.
The latest phase of the development programme included the drilling of five new thermal wells; and the installation of steam facilities for a thermal recovery process on the both the new and existing production wells.
All five of the new thermal wells successfully intersected producible hydrocarbons in the Nukhul formation. In addition, Lagia 15 was drilled to a total depth of 1,820ft and intersected the Nukhul formation as well as the Thebes formation. Although the Nukhul Formation at this well location was not well developed, it discovered producible oil in the Thebes formation. Post drilling analysis indicates that the discovery in the Thebes formation is of a higher API gravity at 24 degrees API compared to the oil produced from the Nukhul formation in this field which has an average gravity of typically between 11 and 13 API.
All 10 wells were placed on production and at the end of February 2016 reached a targeted well head production rate of 1,000 bbl/d.
This development programme was successfully completed under budget with no health or safety incidents reported.
Dr Thabo Kgogo - SacOil CEO 2 Dr Thabo Kgogo, Chief Executive Officer of SacOil, commented,

“The completion of the Lagia phase 2 development programme and reaching our target of 1,000 bbl/d are significant operational milestones for SacOil. We are pleased to have achieved our stated production target, which represents another step towards our strategic aim to become a leading Pan African oil and gas company engaged in Upstream, Midstream and Downstream activities.
Our technical team has been pivotal in unlocking value at the Lagia oil field, particularly from the Thebes formation, which for the last 30 years has been explored and evaluated by a number of Independent Oil Companies with very limited success. Our focus moving forward on Lagia will be to optimise production commensurate with the current low oil price environment and to further evaluate and appraise the discovery in the Thebes formation.”

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Source: SacOil
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