Sea Dragon Energy has entered into a farm-out agreement with IPR Energy Resources for a 45 per cent participating interest at the South Disouq Concession, located in Egypt’s Nile Delta
The South Disouq concession comprises 1,275 sq km of acreage in the Nile Delta and is expected to contain significant gas potential. It is located within the prolific Abu Madi-Baltim trend, which currently contains 10 discoveries, containing 178.3bn cu/m of gas and 100mn barrels of oil.
Under the terms of the agreement, IPR Energy Resources will carry the cost of the first phase commitment well, pay US$1.9mn of the signature bonus, fund its proportionate share of the remaining work programme and have the option to operate the commitment well.
Paul Welch, CEO of Sea Dragon Energy, said, “This agreement is an important milestone for the development of the South Disouq concession, which in itself is a key asset for the Company, representing significant exploration upside potential in an area the Sea Dragon management team have had proven success.
“The farm-out will also provide Sea Dragon with the financial flexibility to continue to develop and invest resources across our wider Egyptian asset base. We look forward to working with IPR to explore for the significant potential within this concession.”
This agreement, however, is subject to final approval by the regulatory authorities in Egypt. Post-approval, Sea Dragon Energy will have a 55 per cent interest in the concession, with IPR Energy Resources holding the remaining 45 per cent. Sea Dragon Energy will continue to be the operator.
IPR Energy Resources is a privately held company based in USA with exploration and production assets in Egypt, USA, and Pakistan. It has been active in Egypt for over 30 years and currently has operations and equity interests in six concessions. It also has a global upstream consulting business and an oil field services division in Egypt.
