Beach Energy has completed the previously announced sale of Beach Petroleum Egypt to Rockhopper Exploration for $20.5m.
Beach Petroleum Egypt has a 22% interest in the Abu Sennan Concession located within the Abu Gharadig basin in the Western Desert, in addition to a 25% interest in the El Qa’a Plain concession.
Beach Energy CEO Matt Kay said: “This transaction completes our exit from Egypt and is another step in our ongoing process of portfolio optimisation.
“Divestment of non-core assets is releasing capital and resources, and delivering cost savings and operating efficiencies.”
The transaction was announced on 18 April this year and includes an average working interest production of about 1,100 barrels of oil equivalent per day (boepd).
The Al Jahraa SE-1X oil exploration well was recently drilled on the Abu Sennan concession and intersected 16.4m of net pay.
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By GlobalDataThe Al Jahraa SE-1X well has been cased and completed and is expected to be brought online after completing a new development lease.
The well is anticipated to add about two million barrels of oil equivalent to the gross 2P reserves recoverable from the Abu Sennan concession.
Rockhopper said that the acquisition, when combined with existing production in Italy, may increase the company’s production to between 1,500boepd and 1,800boepd during the remainder of this year.
Rockhopper Exploration CEO Sam Moody said: “We are delighted to announce the completion of this strategically important acquisition, which materially increases our exposure to low cost, cash generative production assets.
“With the recent exploration success at the Al Jahraa SE-1X well, combined with the increase in estimated 2P reserves, we are delighted to be retaining the entire 22% interest in Abu Sennan.”
