The Company’s strategy is to leverage its strengths of technical expertise, across the full spectrum of oil & gas activity, to realise additional exploration, development and production value from medium sized declining fields. This strategy has allowed the Company to consistently grow its working interest production.
Cheiron’s expansion drive is intended to propel the Company towards becoming a major regional player in the oil and gas sector by doubling its size in terms of production within the next three years. In parallel, the Company is actively diversifying its asset base both geographically – with on the ground presence in Egypt, Mexico and Romania – and by product with increased exposure to natural gas to serve as a buffer during periods of oil price volatility.
Our growth cycle can be summarized as follows:
Cheiron leverages its access to capital and strong cashflows to acquire carefully selected mature assets, with upside potential and near-field exploration opportunities.
Cheiron applies a field-specific suite of advanced technologies to reverse production decline and build reserves at acquired fields. This approach has proved successful, resulting in a strong track record of uncovering new prospects and increasing production and reserves. In the geologically complex Gulf of Suez region, 97% of new wells have been successful.
The Company can maintain a low-cost structure through economies of scale and careful management of the cost base, allowing it to generate positive net income, despite aggressive capital expenditure. Economies of scale are generated by driving volumes of production through central integrated infrastructure and having access to international offtake markets.
By carefully reinvesting its capital, the company maintains a healthy Reserve Replacement Ratio (RRR). Aggressive investment across assets and into new ventures is expected to raise total working interest production sharply in the coming years as the Company consolidates its presence in Egypt and expands its operations across the region.