NPC Announces Increased Oil Production in the Shukheir Bay Field

Production on the Shukheir Bay-5 ST, in the Shukheir Bay Field of the Shuhkeir Marine Gulf of Suez concession, has been increased from 60 to 1600 barrels of oil per day (BOPD) from the Lower Rudeis sandstone. This raises total production at NPC to 1,908 barrels of oil per day.

The National Petroleum Company (NPC), Citadel Capital’s upstream oil and gas business, has undertaken operations on its Shukheir Bay-5 ST well, which was drilled in June 2006. NPC has lease rights on the 40-square-kilometer development lease, which is located approximately 125 kilometers north of Hurghada on the western coast of the Red Sea.

The concession operator, Offshore Shukheir Petroleum Co. Ltd. (OSOCO), a joint venture company of NPC’s Petzed Investment and Project Management Ltd. and the Egyptian General Petroleum Corporation (EGPC), performed a non-rig well intervention on November 9, 2009, adding 7 meters of new perforations in the Lower Rudeis sandstone.

The well had been previously producing at a stabilized rate of 60 BOPD on artificial lift from one set of perforations in the Upper Rudeis sandstone. Cumulative production to date from the Upper Rudeis was 0.288 million barrels of oil (MMBO).

Shukheir Bay-5 ST now has a total of 17 meters of perforations naturally producing 1600 BOPD and 3.6 million standard cubic feet per day (MMSCFD) of gas on a 40/64″ production choke. The well has produced approximately 24,000 barrels cumulative of new oil to-date since November, 9, 2009.

Production from Shukheir Bay-5 ST will continue to be monitored over the coming period to confirm productivity, sustainability and a potential increase in reserves.

The increase in oil production from this brown field follows a major focus to revive production through applied reservoir engineering and the use of modern cased hole logs that help identify potential bypassed oil.

This success potentially opens other opportunities to access bypassed oil by adding additional perforation intervals in other existing wells or by sidetracking existing wells to new bottom hole locations in the Shukheir Bay field. An offset well on the lease, Shukheir Bay-1, has produced over 5.4 MMBO from the Lower Rudeis Formation.

—Ends—

Citadel Capital is the leading private equity firm focusing on building regional platform investments throughout the Middle East and Africa in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity Specific Funds. Citadel Capital’s 18 OSFs now control Platform Companies with investments worth more than US$ 8.3 billion in 15 industries, including mining, cement, transportation, food and energy. Since 2004, the firm has returned more than US$ 2.4 billion in cash to investors, 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 (2004-2009, as ranked by Private Equity International). For more information, visit www.citadelcapital.com.

The National Petroleum Company (NPC) is an upstream oil and gas exploration and production company with a MENA footprint. In 2006, NPC acquired 100% of Petzed, which controls the productive Shukheir marine concession of Gamma and Shukheir Bay fields. Petzed has three more concessions in the Gulf of Suez, including South Abou Zeneima, East Kheir and Ezz El-Orban Offshore. It also holds the North Maghara concession in northern Sinai. In 2007, together with a consortium of co-investors, NPC acquired 100% of Calgary-based Rally Energy, which has a 100% operating interest in the Issaran oilfield, 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. NPC also holds shares in NVPL which is an operator of 3 exploration blocks in Sudan. NPC is a Citadel Capital company with paid-up capital of US$ 425 million.

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 begin_of_the_skype_highlighting              +20 2 2791-4440      end_of_the_skype_highlighting • Fax: +20 22 791-4448
Mobile: +20 16 662-0002