Rally Energy drilled three new Egyptian oil wells in 3Q 2003
Rally Energy Corporation made significant progress in Egypt in the third quarter of 2003. Three new wells were drilled in the Ras Issaran oilfield. The first well encountered a thick column of Dolomite oil pay, which exhibited excellent reservoir characteristics, stated a press release.
Production from this well has now stabilized at about 1,000 barrels per day (bpd). Completion work continues on the second and third wells to achieve co-mingled Dolomite and Gharandal zone production.
In October and November, Rally Energy re-completed two shut-in wells in the Zeit sand, a previously untested formation which overlies a large portion of the Issaran oilfield. Initial oil production from the first well was over 100 bpd and appears to have stabilized in the 50 bpd range. Initial oil production from the second well has exceeded 100 bpd.
Average production for the nine months ending September 30, 2003 was 962 bpd. Production in the third quarter of 2003 averaged 865 bpd and increased to 1,368 bpd in October. Current production is in excess of 1,900 bpd.
Gross Revenue for the nine months ending September 30, 2003 was $7.2 million, resulting in Cash Flow from Operations of $685,000.
Rally Energy is poised to continue development of the Issaran oilfield. The immediate goal of the Corporation is to methodically build production in Egypt. The Zeit sand potential is expected to be exploited through an extensive low cost development program to run concurrently with the deeper exploration program. — (menareport.com)
© 2003 Mena Report (www.menareport.com)