In line with moves to expand in the greater Mediterranean and North African region, Rockhopper Exploration Plc, has completed the acquisition of Beach Petroleum Egypt, a subsidiary of Adelaide-based Beach Energy Ltd.

Beach Egypt had a 22% interest in the Abu Sennan concession in the Abu Gharadig basin in the Western Desert as well as a 25% interest in the El Qa’a Plain concession on the eastern shore of the Gulf of Suez.

The company received a payment of $22 million which includes $11.5 million in cash while the balance was in shares not less than 5% of Rockhopper’s issued capital.

This acquisition is expected to increase Rockhopper’s production to between 1,500 and 1,800 boepd for the remaining of this year.

Aside the procurement, the company is currently assessing possible prospects obtainable through the 2016 Egypt exploration licencing round.

The Abu Sennan concession was signed in June 2007 with first commercial production achieved in 2012. The concession continues to be underexplored with significant exploration and appraisal benefits.

Current operations on the concession include the successful drilling of the Al Jahraa SE-1X oil exploration well, which encountered 16.4 m of net pay.

The well has been cased and completed and is expected to commence production after the signing of a new development lease

The well has been estimated to add about 2 Mmboe to the gross 2P recoverable reserves from the Abu Sennan concession and in order to conclude drilling operations and the evaluation of the results of the Al Jahraa SE-1X well, the exploration concession was extended till November 2016.

“We are delighted to announce the completion of this strategically important acquisition which materially increases our exposure to low cost, cash generative production assets. Unit cash operating costs at Abu Sennan during H1 2016 were approximately $8 per barrel. With the recent exploration success at the Al Jahraa SE-1X well, combined with the increase in estimated 2P reserves, we are delighted to be retaining the entire 22% interest in Abu Sennan. Following completion of the Acquisition our balance sheet remains strong and we retain our year end 2016 cash guidance of US$60 - 70 million,” Sam Moody (photo), CEO of Rockhopper told Energy-pedia.

Anita Fatunji