LUKOIL OVERSEAS STARTS PRODUCTION TESTING AT THE WEEM EXTENSION BLOCK IN EGYPT

Oil is produced from an exploration well that gave oil inflow of 1,300 bopd from the Nubia oil-bearing formation during testing. Reserves estimation that is needed in order to obtain a license for exploitation of the area around the producing well is taking place presently.
The WEEM Extension contract area is immediately adjacent to the WEEM block where LUKOIL Overseas has been operating since 2001. The participants in the WEEM Extension are LUKOIL Overseas (50%, operator) and Tharwa Petroleum (50%), an Egyptian company. The deal on acquisition of LUKOIL Overseas share in the project was concluded this February. The first phase of exploration of WEEM Extension that is estimated to last 2.5 years covers drilling of three exploration wells and acquisition of 3D-seismic. The exploitation license will provide the subsurface user with a right to develop the field for 20 years.