UK's Regal Petroleum to acquire onshore oil interest in Egypt
UK-based Regal Petroleum has signed a heads of agreement to acquire LK Exploration (LKE)’s interest in certain petroleum exploration and production rights in the East Ras Budran Area, Gulf of Suez, Egypt. The transaction is subject to Egyptian government approval.
The concession area is in one of the most prolific petroleum provinces in the world. Surrounding oil fields nearby include Ras Budran, October, Abu Rudeis, Belayim Onshore and Belayim Offshore, which range from 270 million barrels to over one billion barrels of recoverable reserves.
The property contains four large prospects identified following the evaluation of existing data. The prospects have the potential for significant oil reserves. An independent study will be completed in due course, according to a press release.
During the first three years of the concession period, Regal has a commitment to spend four million dollars during the exploration stage. The company is a London-based oil and gas producer with focused mainly on exploration in Eastern Europe.
Regal has a 75 percent interest in leases containing 25 billion cubic meters of proven and probable gas reserves and 5.8 million cubic meters of proven and probable condensate reserves in north-eastern Ukraine. — (menareport.com)
© 2004 Mena Report (www.menareport.com)