An official at Ganoub El Wadi Petroleum Company (Ganope) informed Egypt Oil&Gas that the company signed two new concession agreements with Joint Stock Company Naftogaz of Ukraine Overseas Petroleum. One of the agreements is for exploration in Wadi Mahareith concession under article no.129 of the law, while the other is for the company to search for petroleum in South Wadi El Mahareith Area under article no.130 of the law.

Naftogaz started phase I of the drilling process following the agreements signing. According to the agreements, phase I included having the company re-execute 2D seismic analysis on 1306km, conduct aeromagnetic survey and aerial survey over 16,000 km2 area, perform 3D seismic survey on a 3100 km area, and drill 4 wells divided into two wells in each concession area.

Naftogaz conducted the 2D seismic analysis with total investments of $67,590,50. Additionally, the company hired the Nuclear Materials Authority to perform the aerial survey with 7720 altitude on 18,760 km area, and aeromagnetic survey with 23,474 altitude over a 18,760 km2 area.  The aerial and aeromagnetic survey’s total costs were $1,220,280.

Moreover, SGO Company prepared an analysis of the aeromagnetic and aerial data of the two concessions which resulted into allocated the areas that have crude oil. According to the geological and geophysical data the company decided on the areas to drill 6 wells in order to test 4 wells of them after completing the new seismic surveys and the analysis and generalization of the existing geophysical data.