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Shell Egypt announces Western Desert oil discovery

Posted: 20 May 2004

Shell Egypt NV (Shell) announced its Sheiba 18-3 discovery well in the Northeast Abu Gharadig (NEAG) Concession successfully tested up to 1,600 barrels of 36 degree API oil per day and 0.9 million cubic feet of gas per day. The well flowed from perforations between 2,114 and 2,134 metres in the Bahariya Sandstone.

Sheiba 18-3 is the first commercial oil discovery in the Eastern
part of the NEAG concession in the Western Desert. The well significantly extends Shell's recent highly successful Abu Gharadig Basin exploration effort. Shell (operator, 52 per cent) and Apache (48 per cent) have identified potential offset locations and follow-up prospects. A proposed plan for further exploration of this area has been reviewed, and supported by, the Egyptian General Petroleum Company (EGPC).

The Sheiba 18-3 discovery could be put into production quickly through nearby field facilities operated by Shell. Early production plans are currently being investigated.

Iman Hill, Country Chair of Shell Companies in Egypt, said: "Shell Egypt is very pleased with the results from our recent test at the Sheiba 18-3 well. We have received strong support from EGPC for our exploration and development program in the area around the Sheiba discovery and look forward to continued cooperation and successful activity in the area with our business partners - EGPC and Apache.

"The significance of this, and other recent Shell discoveries in
NEAG, is that the wells were drilled in an area that has been extensively explored by many operators. With the implementation of new technology,

Shell Egypt has been able to unravel the subsurface complexities of the basin and deliver results.

Shell has operations in the Western Desert and Nile Delta offshore, including the ultra deepwater Northeast Mediterranean Deepwater Concession (NEMED).

The company is the third largest producer of liquid hydrocarbons in the Western Desert with operated production of approximately 30,000 barrels per day, and the largest producer of natural gas with operated production of approximately 600 million cubic feet per day.

For more information see www.shell.com

Posted by Richard Price, Editor Pipeline Magazine

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