Beach Completes Egypt Sale to Rockhopper

Australia-listed Beach Energy said August 17 it had completed the sale of its Egyptian subsidiary, the core asset of which is a 22% interest in the Abu Sennan concession, to UK-listed Falklands explorer Rockhopper Exploration for up to $20.5mn cash, of which roughly half upfront now. The deal was first announced a year ago.

Beach acquired its interest in Abu Sennan, within the Abu Gharadig basin of Egypt's Western Desert, in 2010. Other partners are operator Kuwait Energy 50% and Dover Investments 28%. Rockhopper said the Al Jahraa SE-1X oil exploration well will soon be brought into production. 

Slide from Rockhopper's AGM earlier this year (Credit: Rockhopper)

Bahrain-based independent Kuwait Energy announced its seventh successful exploration well on Abu Sennan in October 2014 which produced up to 2,164 b/d and the el-Salmiya-6 appraisal well which tested 2,750 b/d and 9.7mn ft³/d; its first such wells in 2011 were gas and condensate discoveries.

Kuwait Energy said the Abu Sennan gas plant allows for optimum utilisation of hydrocarbons in the Abu Sennan field, with associated gas sent for Egyptian domestic use. It said its working interest production from the field in 2015 was 2,994 boe/d.

Mark Smedley