Sacoil Commences Drilling Operations at Its Lagia Oil Field

SacOil, through its subsidiary Mena International Petroleum Company Limited commenced the drilling of the Lagia 11 well on 13 November 2015, at its 100% owned Lagia oil field in Sinai, onshore Egypt. This forms part of the Phase 2 field development operations.

As reported previously, the Lagia 11 well is part of a five well drilling campaign aimed at increasing and optimising production.

The Lagia wells will be drilled using the contracted Petro PDSO land rig, Shams 1. The five wells, Lagia 11, 12, 13, 14 and 15 will be targeting the main producing reservoir, the Nukhul formation at approximately 1500 feet below mean sea level.

The Phase 2 field development also includes the successful installation and commissioning of steam facilities for a thermal recovery process on the production wells.

The existing five production wells were successfully steamed with the formation reacting positively by accepting the injected steam as anticipated. The thermal recovery process yielded positive results with an increase in production rates observed after the first steam and soak cycle using progressive cavity pumps.

The five existing wells were steamed and allowed to soak for a number of days in order to heat up the reservoir and reduce the oil viscosity before starting production. The final program includes the steaming and thermal recovery of all the wells in order to achieve a targeted production rate of 1,000 bbl/day.

The company successfully procured and is in the process of installing ten new thermal well heads and tubing sucker rod pumps, which have been customised specifically for the Lagia field conditions and which will replace the progressive cavity pumps.

More details on the results of the drilling, as well as progress on the current operations, will be announced in due course, as operations progress.

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