Despite restrictions on travel, constructive negotiations with EGPC to amend, extend, and consolidate the Company’s Eastern Desert concession agreements have continued throughout the quarter.
Western Desert – South Ghazalat (100% WI)
SGZ-6X well continues to produce from the Upper Bahariya reservoir at a rate restricted to a field estimated 200 – 250 Bopd light and medium crude to evaluate the well, manage the reservoir and optimize the separation of oil, gas, and water.
Eastern Desert (100% WI)
Consistent with the Company’s revised 2020 budget, there has been no drilling activity in the Eastern Desert during Q2 2020.
Discussions with our joint venture operating partner continue to further reduce operating expenditures. Material operating cost reductions in Egypt requires the assistance of the Company’s Egyptian joint venture partner, the Egyptian General Petroleum Corporation (“EGPC”).