North Baharya Acquisition Completed

PICO Cheiron Group is pleased to announce that it has completed the corporate acquisition of Sahara North Baharya, giving the Group ownership of a 50% Working Interest and Operatorship of the North Baharya concession in the Western Desert.

The North Baharya concession covers an area of around 177 square kilometers and contains six oil fields, namely Abrar, Ferdaus, Ganna, Rawda, Sidra and Rayan, producing from the Cretaceous Abu Roash formation. On a combined basis, the fields are producing over 8,000 bopd gross and hold certified proven plus probable oil reserves of 31 mmbbls as of June 2016. Similar to neighbouring acreage in the Western Desert, there are significant opportunities to add value to the concession through the use of advanced drilling and completion technologies and the potential implementation of secondary recovery schemes. Based on technical studies and regional geologic analogues, the concession is also thought to have exploration potential in the deep Jurassic and shallow Paleocene formations.

The acquisition represents a significant milestone for the Group as it seeks to grow and diversify its asset portfolio. As a result of the acquisition, Group operated production has increased to a record level of 39,000 boepd and is set to rise further with planned investments in its Gulf of Suez fields and other asset acquisitions.

The Group looks forward to working in close cooperation with the North Baharya joint venture partners, IPR Transoil Corporation and INA Naftaplin, to pursue an active drilling and workover program on the concession in 2017 and 2018.