NJSC “Naftogaz of Ukraine” has received the first results of oil exploration in Egypt

The NJSC “Naftogaz of Ukraine” achieved the first results from its efforts aimed to diversification of hydrocarbons supply and production sources abroad.

In the framework of implementation of the Concession Agreement for Petroleum Exploration and Exploitation signed on 13th of December, 2006 between the Arab Republic of Egypt and Egyptian General Petroleum Corporation and NJSC “Naftogaz of Ukraine”, the Ukrainian company continues to take numerous steps in order to develop the concession territory Alam El Shawish with area 994 sq. km located on the territory of the Western Desert of the Arab Republic of Egypt.

On 16th –20th of February, 2009 the NJSC “Naftogaz of Ukraine” delegation headed by the Deputy Chairman of the Board Vadym CHUPRUN paid the visit to the Arab Republic of Egypt. The visit has been devoted to testing of the third (lower) level of the Exploration well Hg-34/3. On 18th of February, 2009 the reached oil flow has debited to 80 ton (588 bbl) per day.

At the same time the most promising reserves volume shall be the second level with the productive strata 16 m. The joint exploitation of all the Hg-34/3 well levels will allow several times increase in daily oil flow.

The NJSC “Naftogaz of Ukraine” in 2007 has acquired 3D seismic survey in the southern part of Alam El Shawish block Western Desert, implemented interpretation of these seismic data and determined drilling locations.

On 28th of October, 2008 the Company has started drilling of the first exploration well Hg-34/3, which has reached its planned depth - 3505 m in January, 2009.

Interpretation of the obtained geological and geophysical data in the well profile revealed three perspective horizons.

The most promising fields, in the Company’s opinion, are those that located in the southern part of the concession territory, development of which will be started at the nearest time.

The Work Program stipulates drilling of 5 exploration wells by the end of this year:

3 ones in the southern part of Alam El Shawish block Western Desert, total recoverable reserves of which has been estimated to be 60 million ton.

2 ones in the northern part of Alam El Shawish Western Desert, total recoverable reserves of which has been estimated to be 8 million ton.

In the second half of 2009 there are plans to achieve the commercial level of production with the further production sales.

The NJSC “Naftogaz of Ukraine” is convinced that the successive diligent work for the mentioned purposes will expedite the process of diversification of energy sources supply and will contribute to forming of the world image of Ukraine as a powerful energy state.

Press Center NJSC “Naftogaz of Ukraine”

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