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Vertical relief on this closure is approximately 75 Potential for early monetization: Plans are transport costs up by 5-7% nationwide. It also
metres and is sufficient to test for lowest known being advanced to place MOU-2 in a success threatens to rekindle inflation in the coming
gas in the 110-metre gross potential reservoir case on an extended production test for an ini- months, after the headline annual Consumer
interval. Gas deeper than structural closure will tial CNG development. This does not require Price Index eased to 13.2% in June from 13.5%
help establish the validity of a single stratigraphic the issue of an Exploitation Concession licence, in May.
trap covering up to 30 square km defined by the which can be applied for in due course following Under the new pricing schedule, the price of
seismic amplitude signature tested in MOU-1. the extended production test. 80-octane gasoline, the most widely used grade
MOU-2 is targeting net Best Estimate Initial gas sales are likely to be constrained to of fuel for passenger cars, has risen by EGP0.75
resources to the Company of 295 bcf (Table 1) a plateau of 10 mcf per day (using MOU-2 and ($0.04) per litre to EGP8 ($0.42) per litre.
based on the independent SLR Consulting Ire- MOU-1). Reservoir characteristics are encour- Meanwhile, the price of 92-octane gasoline has
land Ltd. Competent Persons Report (CPR), aging and well deliverability may potentially increased by EGP0.5 per litre to EGP9.25 ($0.49)
(February 2020 and January 2022 MOU-4 be significantly higher than this plateau. For per litre, and that of 95-octane gasoline, a fuel
updated). Gas deeper than the mapped struc- early monetisation and the generation of near- used by high-end consumers, grew by EGP1 per
tural closure tested by MOU-2 would support term gas sales revenues a cautious approach is litre to EGP10.75 ($0.57) per litre.
the SLR High Estimate of gas resources net to being adopted to ensure that any exposure to At the same time, the price of diesel, a popu-
the Company of 708 bcf. shortfall in gas deliveries due to operational rea- lar fuel for freight transportation and trucking,
Supportive desktop studies: Recently com- sons is manageable through a flexible Gas Sales was also adjusted upwards by EGP0.5 per litre
pleted post-well geochemical, sedimentolog- Agreement to end users with an alternative LPG to EGP7.25 ($0.38) per litre. Egypt’s government
ical and biostrat studies on well cuttings have back-up. has resisted diesel price hikes for a long time for
confirmed that the distal part of the Moulouya CNG sales can be upscaled with additional fear of lending momentum to inflation on the
Fan was deposited in a deep marine setting. The development wells to reach the next threshold commodity and goods markets.
presence of very fine-grained sandstones was production target of 50 mcf per day. The government also raised the price of diesel
established as indicated as interpreted from the First CNG gas sales are being targeted for for industrial use by EGP400 ($21.14) per tonne
high resolution NuTech post-well log analy- within six months of the completion of rigless to EGP5,000 ($264.30) per tonne, in line with its
sis. These are moderately well sorted and have testing for MOU-1 and MOU-2. Timing will policy to eliminate fuel subsidies to the industrial
undergone very little compaction. At deposition depend on maintaining a momentum in the sector. However, it maintained the price of diesel
the independent studies indicated that these logistical supply chain. charged to bread makers and electricity genera-
sediments were likely to have 35-40% porosity Predator Oil & Gas Holdings, July 19 2022 tors in an attempt to ease the burden shouldered
and permeabilities between 2,000 and 5,000 MD. by the most vulnerable segments of society and
Lack of compaction and consolidation suggests to keep generators units up and running.
that poroperm conditions would not have been POLICY bna/IntelliNews, July 19 2022
significantly impacted through burial and there-
fore good reservoir quality would potentially be Egypt’s government adjusts Sound Energy loses
retained, as supported by the post-well NuTech
log analysis. fuel prices upward in $2.55mn tax case in
The new desktop studies will be used
to update and refine the MOU-1 testing quarterly review Moroccan court
programme.
Geochemical source rock studies unexpect- In its latest quarterly review of fuel prices, Egypt’s London-listed firm Sound Energy said it has lost
edly showed that the section between 800 and government has opted to make an upward a case at a Moroccan court over claims it owes
1,500 metres frequently had Total Organic Car- adjustment of EGP0.5-1.0 ($0.026-0.053) per $2.55mn in taxes after it took over assets from
bon content of between 0.85% and 1% raising litre for all types of petroleum products in light Schlumberger in 2021, according to a statement
the possibility of not only a thermogenic dry gas of the upswing in global crude oil prices. on July 13.
source but also a biogenic gas source. This administrative adjustment is set to send Sound’s demand for the claim to be annulled
was rejected, but the company believes the petro-
leum deal governing the Greater Tendrara pro-
ject was interpreted wrongly by Moroccan tax
authorities. Disappointed at the ruling, Sound
said it might consider an appeal to the Moroccan
higher courts, and may also take further steps,
which it did not identify.
Sound’s chairman, Graham Lyon, pointed
out the company will reflect on the ruling with
Moroccan ministries given its impact for new
entrants into the North African country.
Sound said in mid-April its operations were
progressing at phase one of its Tendrara gas pro-
ject onshore Morocco. The company is partnered
at Tendrara by Morocco’s state-owned ONHYM.
It is still unclear whether the new ruling will
affect Sound’s expansion plans in the country.
bna/IntelliNews, July 13 2022

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