Egypt's E&P company Cheiron has made a new oil discovery at a field in the Geisum and Tawila West
concession in the Gulf of Suez. The firm has three further wells on its drilling horizon, which will be used to
complete the current phase of its drilling programme.

This discovery was made in the GNN-11 exploration well, which was drilled into a fault block to the east of the
GNN oil field development. According to Cheiron, the well encountered 165 feet of good quality vertical net pay in
the Pre-Miocene Nubia formation and this is the first time the Nubia has been found to be oil-bearing in the GNN
area of the concession. The producing reservoir in the main GNN field is in the Nukhul formation.

The well was drilled from the recently installed GNN Early Production Facility (EPF) and has been successfully
placed on production at a rate of over 2,500 bopd. As a result of the drilling campaign conducted to date on the
field, the gross oil production from the concession has reached 23,000 bopd, compared to 4,000 bopd before the
GNN field was developed.

Furthermore, GNN-11 is the fourth well to be completed from the EPF, which is located in the central area of the
field and includes a conductor support platform, a mobile offshore production unit, and a 10-inch oil export
pipeline, tied back to the existing Geisum Star production complex.

Cheiron explains that a new Nubia discovery confirms the exploration potential in the northern area of the
concession, thus, the firm plans to drill at least three additional exploration wells in this area. In addition, the
company highlights that whilst the Gulf of Suez is a relatively mature hydrocarbon province, this discovery
demonstrates that it still has “significant remaining exploration potential.”

Cheiron, through its PICO GOS affiliate, has a 60 per cent working interest and operatorship in the concession
while Kufpec holds the remaining 40 per cent interest. The field operations are managed by the PetroGulf Misr
Joint Operating Company on behalf of EGPC (50 per cent) and the concession partners (50 per cent).