Vegas O&G Completes 4th Al-Amir Appraisal in Egypt

The Al-Amir SE-5 appraisal well has been successfully drilled and production tested in the Al-Amir Development Lease in the onshore North West Gemsa Concession in Egypt.

Circle is delighted to confirm that the Kareem Formation Sandstones under test flowed 42 degrees API oil at sustained average rates of 6,150 bopd and 6.9 MMscfd of gas using a 64/64" choke and at 4,300 bopd and 4.9 MMscfd of gas using a 48/64" choke from the upper of the two identified pay zones. The well, which is the fourth appraisal well to be drilled in the Al-Amir SE discovery area, has been completed and production tested and will now be prepared for production.

Log result interpretations indicate that the total net thickness of the two pay zones is approximately 36.5 feet. The upper pay zone identified in the Kareem Shagar Sandstone is 19 feet thick. The lower pay zone in the Kareem Rahmi Sandstone is 17.5 feet. A full technical evaluation of all the results is underway to assist in development planning and is a precursor to continuing further assessment of the resource potential. These results will also assist in delineating the extent of the reservoir in the area. An assessment of reserves has not yet been completed.

The NW Gemsa concession, containing the Al-Amir and Geyad Development Leases, covering an area of over 260 square kilometers, lies about 300 kilometres southeast of Cairo in a partially unexplored area of the Gulf of Suez Basin. The concession agreement includes the right of conversion to a production licence of 20 years, plus extensions, in the event of commercial discoveries. The North West Gemsa Concession partners include: Vegas Oil and Gas (50% interest and operator); Circle Oil Plc (40% interest); and Sea Dragon Energy (10% interest).

The drilling rig will now move to commence drilling the Al-Amir SE-6 well which is the fifth appraisal well in the Al-Amir SE discovery area. The primary target is again the Kareem Formation. This well is being drilled to delineate the downdip Oil Water Contact which is required for technical reasons.