Rockhopper Exploration updates on Egypt concession

Oil and gas company, Rockhopper Exploration announced its Abu Sennan drilling concession in Egypt had maintained a stable level of production, averaging 3,300 barrel of oil equivalent per day over the first six months of the year.

Al Jahraa-9 well showed that the sand was water wet, but the reservoir pressure was in line with other oil producing wells in the reservoir and reported an oil show deeper than any other in the region, which it said, "demonstrated further potential" elsewhere in the concession.

Following a successful side-tracking of the Al Jahraa SE-2X into the Al Jahraa SE field, oil pay had been confirmed from wireline logging in both the AR-C and AR-E reservoirs.

After completing the well in the deeper AR-E reservoir production was running at roughly 250,000 boepd, the company said in a statement.

The firm also stated that outstanding receivables for Egypt had continued to reduce as further payments had been collected throughout July.

Rockhopper had a 22% working interest in the Abu Sennan concession.

"We are pleased with the overall progress in Egypt and, in particular, with the continuing reduction in our receivables balance. While it is disappointing that the Al Jahraa-9 well was water wet, the deep oil shows are an encouraging indication of the additional potential at these deeper levels in other areas of the concession," said Sam Moody, chief executive of Rockhopper.

As of 0950 BST, shares in the company had seen a 4.67% dip, down to 18.11p.