Cheiron Energy has achieved a significant oil discovery in the Gulf of Suez, Egypt, bolstering its local production capacity. The company successfully drilled the GNN-11 exploration well in the pre-Miocene Nubia formation, revealing 165 feet of net pay. The drilling was conducted from the GNN early production facility (EPF), resulting in a daily production rate of 2,500 barrels.

This new discovery has elevated the gross production on the license to 23,000 barrels per day, marking a substantial increase from the previous 4,000 bpd when the GNN field wasn't operational. GNN-11 represents the fourth completed well on the EPF platform, which incorporates a conductor support platform, a mobile offshore production unit, and a 10-inch export pipeline connecting to the Geisum Star complex.

The Nubia formation discovery in the GNN area is a pioneering feat, as oil from this stratum had not been previously identified in this concession. The primary GNN field primarily extracted oil from the Nukhul formation. The success of the Nubia discovery underscores the untapped exploration potential in the northern region. The partners intend to proceed with the drilling of a minimum of three more exploration wells.

Cheiron, holding a 60% stake in the Geisum and Tawila West concession through its subsidiary Pico GOS, serves as the operator. Kuwait Foreign Petroleum Exploration Co. (KUFPEC) possesses the remaining 40%. The two entities share a 50% stake in the PetroGulf Misr operating company, while the Egyptian General Petroleum Corp. (EGPC) owns the other 50%.

Although the Gulf of Suez is considered relatively mature, this accomplishment by Cheiron signifies the substantial untapped exploration potential that remains. The EPF's successful launch in March of this year has paved the way for Cheiron's optimism, with the estimated oil reserves in GNN potentially reaching 300 million barrels.