PetroSilah Petroleum Company aims to invest about $55m for research and exploration of petroleum and natural gas in its concession areas in Fayoum during 2017.
Taher Abdel Rahim, the company’s chairperson, told Daily News Egypt that about six wells will be drilled during the second half of this fiscal year (FY). They are divided into four development wells and two exploration wells to increase the production rates of gas and to compensate for the natural decline of production.
The company aims to increase production rates of crude oil to 12,000 barrels per day by the end of this fiscal year, up from its current 8,700 barrels per day.
The company reached the highest petroleum production levels in January 2016 with a production rate of 13,400 barrels of crude oil per day for the first time. The rate declined due to the natural decline in the production of fields and not connecting new wells to production.
Abdel Rahim noted that the production costs of crude oil have declined in the Fayoum concession area to $5.36 instead of $8.5 during the last FY. The depths of wells drilled reached 9,000 feet.
Reducing production costs of the barrel was caused by a 40% decline in the cost of services, and the rental of equipments and drillers due to the decline of petroleum prices in global markets.
Abdel Rahim explained that total reserves of PetroSilah are estimated at 150m barrels of crude oil. They are divided into 60m for production, and about 90m barrels in uncertain reserves.
PetroSilah managed to add 5.5m barrels of oil to the reserves after drilling seven exploratory wells, and six development wells in the concession areas over the past period.
He added that a three-dimensional seismic scan will be carried out in the area, covering 560 sqkm of the concession areas in order to locate the areas where new petroleum discoveries can be made.
Abdel Rahim noted that PetroSilah seeks to apply all professional health and safety standards to secure the locations of fields. It is also taking all necessary measures to protect the environment.