IPR Makes Significant Oil find in Egypt's Western Desert

IPR, a USA Texas Independent, has made a significant new oil discovery in an underexplored frontier area of the Western Desert of Egypt, known as the El Diyur Concession, as reported through its operator Apache Corporation. IPR was awarded the El-Diyur Concession in 2001 through EGPC's International Bid Round.

The discovery was made in the El Diyur-2X well which was drilled to a total depth of 8,424 ft to the Jurassic. Oil and gas shows were encountered in seven different Cretaceous reservoir zones, namely the Abu Roash (sub-layers) and Bahariya. These zones were later confirmed to be oil bearing by E-Logs, MDT, and CPI analysis, yielding a total of 262 ft of net oil pay in the seven reservoir zones. A DST and a subsequent successful hydraulic frac job were conducted in the lowermost zone (the Bahariya sands). The well tested over 1,000+ BOPD of 26°API gravity from the producing zone on test from 10 ft of perforations.

IPR and its partners have declared the commerciality of the El Diyur-2X discovery to the Egyptian General Petroleum Corporation (EGPC). A development plan has been proposed and is currently under review by the Ministry. First oil production is expected to be on stream by July 2005.

The El Diyur consortium (IPR and Apache-USA and Sipetrol International S.A-Chile) is conducting an aggressive exploration drilling campaign in this frontier region of the Western Desert with El Diyur-4X and El Diyur-3X being drilled back to back within the next two months.

With the success of El Diyur-2X and eventual conversion to a development lease, this will be IPR's fifth licensed producing development lease in Egypt.