IPR Discovery in N. Bahariya Triggers Early Production Plan

Texas Independent IPR, reported through its Operator (Sipetrol International S.A.), that they have successfully completed the drilling of their fourth exploration well, El-Rawda-1, in the North Bahariya Concession, Western Desert, Egypt.

El Rawda-1 was drilled on a separate structural trend located approximately 9 km and 13 km east of the consortium’s recent discoveries Ferdaus-1 and Ganna-1, respectively. The well was drilled to a total depth of 10,500 ft (-9,814') in the Bahariya formation. Oil and gas shows were encountered while drilling in three different sandstone reservoirs (AR/G middle, AR/G lower and Bahariya). Two cores were cut in the AR/G lower & Upper Bahariya reservoirs, indicating hydrocarbon bearing sandstones in both horizons, later confirmed by electric logs and petrophysical interpretation.

A DST and successful hydraulic frac job were conducted in the AR/G lower sandstone revealing commercial quantities of 38 degree API oil. IPR and its partners, Sipetrol (Chilean) and INA Naftaplin (Croatian), were granted a development lease by the Government of Egypt’s petroleum authority (EGPC), in which an aggressive exploitation plan consisting of 3D seismic, infill drilling, and re-completions, was approved to accelerate early production forecasted to commence in the third quarter of 2004.