Summary

This work plan describes the governance agreement, contract strategy and organizational staffing plan for the appraisal phase of the East Nile Delta Phase 3 project team.

Pharonic Petroleum Company (PhPC) has identified several wells and associated facilities for utilization over a three-year period.  A single task force will administratively coordinate the project in order to achieve optimum efficiency and coalescence amongst project team members and independent contractors.  The unified administrative team will also produce scheduling and capex benefits.  The wells identified for further study include:

• New Ha’py 13 well on existing Ha’py platform
• New Ha’py 15 well on existing Ha’py platform
• New Ha’py H12 subsea well (appraised in 2012, completion 2014)
• New Ha’py 11 subsea well
• New Taurt North subsea well in North El Burg Concession
• New Taurt 8 subsea well
• Taurt 5 sidetrack (timeframe dependant on performance of T4 / T5)
• H10 Recompletion

East Nile Delta Phase 3 Schematic

Development
The below graph demonstrates that the existing wells within the REB concession have begun a noticeable decline in rates of production.  The integration of the wells that comprise the East Nile Delta Phase 3 project will increase overall production rates and rectify the production decline throughout West Harbour facilities through 2017.

REB Production Profile

As the scheduling timetable demonstrates the East Nile Delta Phase 3 Project is current in the definition stage.  However in order to meeting scheduling and production goals, a number of long lead approvals were ordered in December.  Contracting, strategy and organizational studies are ongoing.

The PhPC Project Management System (PPMS) will form administrative governance to ensure the release of funds to PhPC to facilitate the beginning of work involving well planning and strategizing.  Developments in this regard will put the project in a position to commence drilling and ordering necessary facilities and long lead items in 2012 / 2013.  

After initial planning and logistical are complete, an administrative management team of shareholders, lead by PhPC, will be in place to ensure a smooth transition from conceptualization and planning to development and operational implementation. Coordination between major contractors and management to facilitate early approval of contracting stages is necessary to ensure attainment of required engineering equipment. 

Depletion plans for both developments will be completed and frozen in accordance facilities scope and final depletion plan.

East Nile Delta Phase 3 Level 1 Schedule

By Eng. Tharwat Abou Shady- PhpC›s – Operations General Manager