Apex International Energy (Apex or the “Company”) has revealed an update on operations and commercial developments from its eight concessions (six operated) in the Western Desert oil producing region of Egypt for the first half of 2024.

To date in 2024, Apex has drilled 10 wells. Six of the 10 drilled wells are currently producing, one has been completed as a water supply well for a water injection project, two are discoveries waiting on completions and one was a dry hole. The drilling campaign utilizing the EDC-65 rig has focused on continued development of Apex’s Fajr and Farah fields, delineation of the Mashreq-N and RAM fields and exploration, all in the Southeast Meleiha (SEM) concession, and drilling a commitment well in the Zarif field in the Ras Qattara concession.

The most recent Fajr well, the Fajr-40, tested at a sustained rate of 500 barrels of oil per day (bbl/d) from the Upper Bahariya (UBAH) formation in late May and has now been placed into production. The successful test of the UBAH establishes the viability of further development of this horizon in the Fajr field area as well as the later recompletion to the UBAH formation in the existing Middle Bahariya (MBAH) producers once the MBAH is depleted in those wells.

In the Zarif field, the Zarif 47 drilled in February 2023, which was the last commitment well under the old Ras Qattara concession agreement, and the Zarif 49 drilled in April 2024, which is one of two commitment wells required under the newly signed Ras Qattara concession agreement, were both completed as producers in the UBAH and placed into production earlier in the second quarter.

Total working interest production has hit 12,000 boepd on several occasions and averaged between 11,500-12,000 boe/d throughout 1H 2024, placing Apex amongst the top 10 liquids producers in Egypt.

On May 27, 2024, the Minister of Petroleum signed the new concession agreement for Ras Qattara between the government of Egypt, EGPC, Apex and INA-Industrija Nafte, d.d., with a firm term of five years, with an option to extend for an additional five years with Minister approval. This new agreement includes terms that will extend the economic life and ultimate recovery from the field and includes a two-well drilling commitment, the first of which, the Zarif 49, was completed and placed into production earlier this year.

Apex is currently negotiating with EGPC to extend the term of its SEM exploration acreage for three years beyond its upcoming expiration date in November 2024, and to modernize commercial terms in the West Razzak and East Kanayes concessions that host the mature Aghar and other oil fields. The new fiscal terms would extend the economic life of the Aghar fields and allow more efficient depletion of reserves.

The Company’s total budgetary commitment to exploration, development and production operations in Egypt during 2024 exceeds $100 million, including operating and capital expenditures for the work program.

“Since our last update we have continued to focus on the successful integration of our six operated concessions and personnel following our transaction with IEOC,” said Thomas Maher, Apex’s President and Chief Executive Officer.

“The success in that effort is reflected in Apex’s continued growth in production and reserves, and I would like to thank the Apex and PetroFarah teams and our partners, contractors and vendors for their outstanding efforts in making this possible,” Maher noted.

Finally, Apex announces the retirement of Keith Dowling, the Company’s Vice President of Engineering and Managing Director/General Manager of the PetroFarah joint venture, effective July 31, 2024. Tom Everitt, who comes from a 30-year career in the upstream oil industry, primarily with Shell, including six years in Egypt, will be joining Apex in Cairo and assuming Dowling’s responsibilities and positions upon his departure.

Maher commented “I would also like to take this opportunity on behalf of the Board of Directors to thank Keith Dowling for his many invaluable contributions to the Company’s progress. We wish him and his wife Joan all the best in their retirement and repatriation to the United States. We also welcome Tom Everitt to the Company. Tom’s extensive experience and especially his years in Egypt and the Western Desert will help Apex to continue its growth trajectory and progress.”