JSE-listed Efora Energy has decided it is best to seek a strategic partner to accelerate the development of its Lagia oilfield, in Egypt, following a strategic review of the project.
The company will also consider reducing its interest in Lagia, as part of a partnership agreement.
“Lagia offers unrealised potential, especially now when the wider industry has emerged from the severe downturn that impacted commercial and operational activities on the asset for the majority of Efora’s tenure as operator,” Efora CEO Dr Thabo Kgogo said in a statement published on Thursday.
The company has appointed consultants to initiate a process to attract a partner for the continued development of Lagia, and the appraisal and potential development of light oil shows within the Lagia development lease.
The company is compiling information for a data room, which will be available for review by interested parties upon execution of a confidentiality agreement in connection with the process.
Efora has not yet set a definitive schedule to complete the process or its identification, examination and consideration of proposals.
Lagia is located onshore Egypt, on the Gulf of Suez coast of the Sinai Peninsula. It contains heavy oil (10 to 12 degrees API) in the Nukhul formation, which is currently in the initial stages of a development programme, with production currently around 60 bbl/d of oil.
Efora believes there is significant development upside with the continuation of the development programme. Field reserves, as independently assessed by
Boury Global Energy Consultants, a qualified reserve evaluator, as at March 1, are 5.6-million barrels proved plus probable.
In addition to the heavy oil production and development upside, there have been light oil shows in the deeper section, which the company believes holds significant potential for appraisal and further exploration.