Sea Dragon Energy Inc., an oil & gas exploration and production company with assets in Egypt , announced Tuesday it has entered into an agreement with IPR Energy Resources, Ltd (“IPR”) to farm-out a 45% participating interest in the South Disouq Concession, located in the Nile Delta, Egypt.
The South Disouq concession comprises 1,275 km² of acreage in the Nile Delta of Egypt and is anticipated to contain significant gas potential. It is located within the prolific Abu Madi-Baltim trend, which currently contains 10 discoveries, containing 6.3Tcf of gas and 100 MMbo of liquids.
Under the terms of the agreement IPR will carry the cost of the 1st Phase Commitment well, subject to a cap, pay $1.9 MM of the signature bonus, fund its proportionate share of the remaining work program and will have the option to operate the Commitment well.
IPR is a privately held company based in Dallas, TX – USA with exploration and production assets in Egypt , USA , and Pakistan. IPR has been active in Egypt for over 30 years and currently has operations and equity interests in 6 concessions. It also has a global upstream consulting business and an oil field services division in Egypt.
This agreement remains subject to final approval by the regulatory authorities in Egypt . Post approval, Sea Dragon will have a 55% interest in the concession, with IPR holding the remaining 45%. Sea Dragon will continue to be the operator.
Commenting, Paul Welch, CEO of Sea Dragon, said: “This agreement is an important milestone for the development of the South Disouq concession, which in itself is a key asset for the Company, representing significant exploration upside potential in an area the Sea Dragon management team have had proven success. The farm-out will also provide Sea Dragon with the financial flexibility to continue to develop and invest resources across our wider Egyptian asset base. We look forward to working with IPR to explore for the significant potential within this concession”.
Sea Dragon is an international exploration and development oil company with a focus on North Africa and the Middle East. Activities are currently concentrated in Egypt , with interest in 4 concessions with short and long term potential.