Egypt discovers oil in the Sahara
Egypt revealed the discovery of a new oil field in the Sahara desert, at a depth of 14,400 feet. In an official statement, the Egyptian Minister of Oil and Mineral Resources, Tariq al-Mulla, noted that the discovery was made in the region of Abu Sennan in the western part of its Saharan area (in the north of the country), on the layer of the geological map, adding that this new milestone was achieved after drilling the Salmiya-5 well, placing it on the production map at a rate of 4,100 barrels of crude oil and 18 million cubic feet of gas per day.
The new operation carried out by Borg El Arab Petroleum Company, which represents the joint operating entity in the concession area, on behalf of the Petroleum Authority and Kuwait Energy Egypt, is located in the geological map layer at a depth of 14,400 feet. The concession now belongs to United Oil & Gas PLC, whose shares rose more than 30% for this opportunity that appeared after this achievement in Abu Sennan, as highlighted by the media Al Ain News.
"As a development well in a known field, it was always expected that hydrocarbons would be found in the Salmiya-5," said Brian Larkin, executive director of United Oil & Gas PLC, who added that "the results have significantly exceeded predrilling expectations," as reported by Proactive Investors.
It is worth noting that the entity had previously made a significant oil find in December 2019 in the ASH-2 exploration well, which went into production at a rate of 7,000 barrels of crude oil and 10 million cubic feet of gas per day.
It is another significant boost to United Oil's production profile following the recent success of the ASH-2 well, also located in Abu Sennan, and further amplifies the reward of last year's transformational acquisition of the Rockhopper Egypt business.
These activities are part of the strategy of the Egyptian Ministry of Oil and Mineral Resources to support and increase the reserve and production rates of crude oil and natural gas.
The ministerial institution of the country of the pyramids also announced the signing of seven new agreements for gas, with a total investment of $ 690 million, and a grant of $ 19 million, in addition to the drilling of 11 exploration wells with a total investment of $ 314 million.
