BP Makes New Gas Discovery Offshore Egypt

BP Egypt announced a significant new gas discovery in the North Alexandria concession, offshore Nile Delta. The discovery well, L-1X, was drilled by Atwood Oceanic's semisubmersible, Atwood Southern Cross and was located in 1312 feet of water, 22 miles from the north coast of Egypt. The well tested dry gas at a rate of 21 million cubic feet per day from the main target zone and at 6 million cubic feet per day from a secondary, siltier zone. The test flow rate in the primary target zone (21 million cfd) was constrained by the tubing size. Preliminary estimates are that the well has proved combined reserves of 600 billion cubic feet gross from the two zones.

The well has been temporarily abandoned and the rig has moved approximately 28 miles to the northeast to drill the Libra -1 well in the same concession.

Future plans for the discovery depend on the results of Libra-1 and other wells planned in the area.

Partners in the North Alexandria concession are BP as operator with 60 percent and the German company RWE-DEA, parent company of GEOGE with the remaining 40 percent.

Earlier this year, RWE-DEA acquired their interest in the North Alexandria concession from Repsol. At the same time BP assumed operatorship of the concession. The Fayoum L-1x discovery is the second success in the North Alexandria concession following the Taurus-1 well drilled in late 2000.