Dover Petroleum Reports Delay in Drilling at East Wadi Araba Concession
Dover Petroleum Corp. expects a delay in the commencement date of drilling at the East Wadi Araba Concession in the Gulf of Suez, Egypt.
Dover Petroleum Egypt I believes that the Senusret jackup, which holds the contract to drill the first two exploration wells under the East Wadi Araba Concession Agreement, is currently drilling for Geisum Joint Venture, an unrelated third party, on its Sea Bird SB/A2 offshore well near Hurghada. Dover Petroleum Egypt I further understands that the Senusret will be obligated to continue drilling for the Geisum Joint Venture until its contractual obligation with Geisum Joint Venture is fulfilled. Based upon information believed by Dover Petroleum Egypt I to be reliable, the Senusret has, as of September 24, 2002, reached a depth of 7,500 feet at the Geisum Joint Venture site and that the basement is expected to be found at 9,000 feet at which point the drilling obligation of the Senusret to the Geisum Joint Venture will be completed.
Drilling under the East Wadi Araba Concession Agreement can not commence until the Senusret's obligations to the Geisum Joint Venture have been fulfilled. Dover Egypt Joint Venture I anticipates that the Senusret Rig will be available to commence drilling under the East Wadi Concession Agreement within 2 to 4 weeks from today, provided that no unforeseen drilling problems arise at the Geisum Joint Venture site and that no other impediment develops.
Dover Petroleum Corp. regrets the delay but does not expect that such delay will materially alter its prospects under the East Wadi Araba Concession Agreement.