British Gas Announces Success with Sapphire-3

BG Egypt and Edison International have announced the successful completion of Sapphire-3, the second Sapphire appraisal well, in the West Delta Deep Marine Concession (WDDM), offshore the Nile Delta, Egypt.

The well, located in the south central area of the concession, 20 kilometers north of the Rosetta Field, was drilled to a depth of 2,900 meters in 450 meters of water. The first target reached was the previously un-drilled Saffron Channel C in the Scarab/Saffron Complex. The well proved pressure communication between Channel C and the Saffron discovery, indicating a gas column in excess of 575 meters - the largest gas column recorded in Egypt.

A second primary target was the Sapphire Sands. The well successfully penetrated all sands present in Sapphire-1 and Sapphire-2, located 15 kilometers to the west of Sapphire-3. Pressure data and geochemical analysis indicates that all three Sapphire wells are in communication. Testing of the well was not carried out as Sapphire-3 penetrated known reservoirs.

Stuart Fysh, Vice President, BG Egypt, said: "This is yet another excellent result from our appraisal and development program in the concession. Early evaluation of the data from the well indicates greater reserves than previously modeled. BG Egypt, Edison International and Egyptian General Petroleum Corporation are targeting this gas and further reserves from the concession for their proposed Egyptian LNG project."

The Sapphire Field is the first gas condensate field in the west Nile Delta area. BG Egypt and Edison International are currently engaged in the development of the earlier WDDM discoveries Scarab/Saffron which together have reserves of more than four trillion cubic feet. Scarab/Saffron is expected to produce its first gas in the first quarter of 2003 for the domestic market.


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