Cheiron discovers oil near GNN field in Gulf of Suez

Cheiron Petroleum Corp. has made a new oil discovery in the Geisum and Tawila West concession offshore Egypt in the Southern Gulf of Suez in 30-200 ft of water. The discovery confirms the exploration potential in the northern area of the concession, Cheiron said. The company plans to drill at least three additional exploration wells from the EPF in the concession area.

The discovery was made by the GNN-11 exploration well, which was drilled from the recently installed GNN Early Production Facility (EPF) into a fault block east of GNN field. The well is the fourth to be completed from the EPF, which is in the central area of the field and includes a conductor support platform, a mobile offshore production unit, and a 10-in. oil export pipeline tied back to the existing Geisum Star production complex, the company said.

The well encountered 165 ft of good quality vertical net pay in the Pre-Miocene Nubia formation. This is the first time the Nubia has been found to be oil bearing in the GNN area of the concession, Cheiron said. The producing reservoir in the main GNN field is in the Nukhul formation.

The well produces over 2,500 bo/d. As result of the new well, and the drilling campaign conducted to date on the field, gross oil production from the concession has reached 23,000 bo/d, compared with 4,000 bo/d before GNN field was developed.

Cheiron is operator of the concession (60%) through its PICO GOS Ltd. affiliate. Kuwait Foreign Petroleum Exploration Co. (Kufpec) holds the remaining 40%.