PetroAmir, a joint venture company between the Egyptian General Petroleum Corporation (EGPC) and the Greek operator Vegas Oil & Gas, has completed the drilling of a new developmental well in the North West Gemsa concession located in Gulf of Suez Basin of the Eastern Desert. The operation comes as part of the company’s development plan for the 2011-2012 fiscal year.

The new oil-producing well, AASE-11X ST1, was drilled via the ST-9 rig to the Kareem formation, reaching a total depth of 11,160 feet. The well encountered 42 feet of net pay in the Kareem Shagar sand and 22 feet in the underlying Rahmi sand with oil-bearing sands present to the base of the reservoir.

The completion for the well as a Shagar sand producer has been installed and the Shagar zone perforated in the interval 10,730-10,780 feet and flowed oil and gas on test at an average rate of 3,500 barrels of oil per day and 2.64 million cubic feet per day respectively.

The cost of drilling the well has totaled $5.064 million, and it has now been placed on production at an initial flow rate of 1,635 barrels of oil per day

Following the successful completion of the AASE-11X ST1 well, the rig has been mobilized to drill the appraisal well AASE-12X, which is located in the south central part of the AASE field.

The well is expected to be an infill Kareem sand producer, located midway between AASE-5X and Al Ola-1 wells. The well was spudded on the 25th of April 2012 and is currently drilling ahead at 2,000 feet in the Zeit Formation towards a total depth of 9,800 feet.

The North West Gemsa concession agreement includes Circle Oil with 40% interest, as well as Sea Dragon Energy with a 10% stake and Vegas Oil and Gas with 50% interest and operatorship.

PetroAmir’s production figures stood at 225,078 barrels of crude oil at the end of last April.