Vegas Oil & Gas purchases 70% of the West Obayed Concession, Western Desert, Egypt, from Hellenic Petroleum.
VEGAS OIL & GAS S.A., following an international tender, has signed an agreement with HELLENIC PETROLEUM S.A. to purchase part of its rights in the West Obayed Concession for the exploration and production of hydrocarbons in the Western desert of Egypt. The two companies will work together in this area (VEGAS 70% – HELPE 30%) with VEGAS being the Operator. This partnership will continue the exploration activities in West Obayed Concession including drilling of at least two wells by the end of June 2012.
Hellenic Petroleum S.A. signed a Concession Agreement with the Egyptian General Petroleum Corporation in June 2007 for the exploration and production of hydrocarbons in the West Obayed area with specific work program commitments. HELPE has made a considerable investment in the area, including the acquisition and reprocessing of 2D and 3D seismic data and the drilling of two wells with promising results for the prospectivity of the area. The existing agreement with the Egyptian State, in the case of hydrocarbons production, provides for the recovery of investments from the proceeds of petroleum produced and sold.
The two companies will join efforts in the West Obayed concession and will continue their other activities in Egypt. Taking into account HELPE’s experience in the region and the successful track record of VEGAS with numerous recent discoveries of hydrocarbons in Egypt, coupled with the financial strength of both companies, the partnership will successfully continue with exploration and production activities in the area.
The transaction is subject to approval of the relevant Egyptian Authorities.