Production is up sharply at operations in Egypt as part of an ongoing program to maximize value at Citadel Capital's heavy oil platform
The National Oil Production Company (NOPC), which is 15% owned by Citadel Capital (CCAP.CA on the Egyptian Stock Exchange), and subsidiary Rally Energy have announced an 80% increase in production since December 2009 to 6,100 barrels of oil equivalent per day (BOEPD) from both the Egyptian and Pakistani operations.
In Egypt, the Issaran field operated by Scimitar Production Egypt Ltd., a fully owned subsidiary of NOPC, recorded progress on a number of fronts in recent months. Production from the field has increased from 3,000 BOPD in December 2009 to its current level of 5,000 BOPD. This strong increase is a direct result of key achievements made by NOPC’s management team in the following areas:
1-Enhancing production from the Zeit Sands project;
2-Switching to steamflooding and carefully increasing the volume of steam injected, which led to an increase in core production in the South area of the field to 2,600 BOPD from a previous level of 2,000 BOPD at the end of December 2009.
“We have reason to believe that the steamflooding method that was implemented six months ago is showing promising signs of success. It is expected to open the potential for exploitation of the reserves base in the coming period,” said NOPC Chief Reservoir Officer Dr. Mohsen Rizkallah, adding, “Based on the dynamic model results, the next step is to plan a new steamflood pilot in North Issaran to further enhance the existing oil recovery.”
Added NOPC Chief Executive Officer Mohamed Farid, “Moreover, since drilling the first successful pilot well in the Zeit Sand formation in August 2009, the company has drilled 20 new Zeit Sand wells that are presently producing approximately 1,000 BOPD. Building on this success, NOPC is planning to expand and drill a second pilot of 20 wells in 2010 to appraise a new area in the South. Drilling will start in July 2010, which will further enhance Issaran’s production level. NOPC’s management team will continue to explore means of optimizing production.”
“We are encouraged by the continued production growth we are seeing in the Egyptian asset and its sustainability and we look forward to continued production growth over the next six months through the development of the promising Northern Issaran block and the Zeit Sands formation,” said Citadel Capital Managing Director Shereef El-Prince.
The National Oil Production Company (NOPC) is a Cairo-based upstream oil and gas exploration and production company with a MENA footprint. In 2007, NOPC acquired 100% of Canada’s Calgary-based Rally Energy, which has a 100% operating interest in the Issaran oil?eld, a significant heavy oil development opportunity in Egypt. Rally also holds a 30% stake in the Safed Koh block in Pakistan, where it is participating in the development of a natural gas discovery. NOPC is a Citadel Capital platform company with paid-up capital of US$ 626 million.
Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity in the Middle East and Africa. Citadel Capital focuses on building regional platforms in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity Specific Funds. Citadel Capital’s 19 OSFs now control Platform Companies with investments worth more than US$ 8.3 billion in 14 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, the firm has generated more than US$ 2.5 billion in cash returns to its co-investors and shareholders (on investments of US$ 650 million), more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2005-2010, as ranked by Private Equity International). For more information, please visit www.citadelcapital.com.
For more information, please contact:
Ms. Ghada Hammouda
Head of Corporate Communications,
Citadel Capital (S.A.E.)
g...@qalaaholdings.com (click to reveal this email)
Tel: +20 2 2791-4440 • Fax: +20 22 791-4448
Mobile: +20 16 662-0002