19th Sep 2014 07:43
LONDON (Alliance News) - Petroceltic International PLC Friday said its joint venture with Edison International Spa has been successful in its bid for the North Port Fouad Block.
The joint venture received the licence award as part of the Egyptian Natural Gas Holding Company 2013 International Bid Round.
North Port Fouad (Block 7), is located offshore the Nile Delta and lies to the north of, and immediately adjacent to, the North Thekah Block, which was awarded to a Petroceltic and Edison joint venture in 2013. The combined area of both licences is in excess of 7,000 square kilometres.
Petroceltic said there have been no wells drilled on the North Port Fouad block to date but regional and seismic evidence indicates that the proven Nile delta Oligocence and Levantine Basin Miocene plays are likely to be present.
The company said major hydrocarbon discovered have been reported in both plays in recent years.
Petroceltic has a 50% non-operated interest in North Port Fouad, which has an initial three year term and is extendible up to a maximum duration of eight years.
The firm work programme commitment in the initial three year term comprises the acquisition of 1,000 square kilometres of 3D seismic data. There is no well obligation in the first licence period.
"It is expected that the new licence will be formally awarded in early 2015 following ratification and finalisation of the Production Sharing Contract," the company said.
Petroceltic International shares were quoted 1.0% at 169.25 pence Friday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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