African independent upstream oil and gas firm SacOil has agreed to acquire the Lagia onshore oilfield on the Sinai Peninsula, Egypt.
Mena International Petroleum currently has 100% stake in the development lease for the Lagia field, covering a 32km² area on the Sinai Peninsula.
The field is under development stage with heavy oil (16°-18° API) found in shallow reservoirs and light oil potential in deeper reservoirs. Its assets include existing production facilities and oil storage for 3, 000 barrels of oil.
SacOil plans to implement a phased development programme to bring the field into production.
The first phase will feature the hydraulic stimulation of four existing wells and the work-over of one well.
The work-over will start as soon as practicable upon completion of the acquisition and will be funded from existing cash resources.
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By GlobalDataThe acquisition is expected to be completed on or before 31 October 2014.
SacOil CEO Thabo Kgogo said: "The signing of a definitive agreement to acquire Mena International Petroleum Company is another significant milestone in the history of the company and endorses our short to medium-term strategy of balancing our existing exploration and appraisal portfolio with lower-risk production and development assets.
"This acquisition represents the first booked reserves for the company and through our anticipated development programme, we will be targeting a daily production rate from the Lagia oilfield of more than 1,000bpd by Q4 2015."
SacOil focuses on opportunities within hydrocarbon basins, throughout the exploration and production spectrum.
The company owns a portfolio of assets in the oil and gas industry, which includes stakes in Malawi, the DRC, Nigeria and Botswana.
