North West Gharib

The North West Gharib concession was ratified into law on November 11th, 2013.

The 655 square kilometer (162,000 acre) North West Gharib PSC surrounded and immediately offsets the Company's core West Gharib/West Bakr producing PSCs (~45,000 acres).

At North West Gharib the Company paid a signature bonus of $25 million and committed to a work program of $35 million in the first phase which consists of 200 square kilometers of 3-D seismic and 30 wells. The initial 3 year exploration phase was extended six months to May 2017.  In December of 2016, the NWG Development Lease #1 was approved.  Prior to the expiry of the first phase (as extended) the Company applied for three additional development leases (NWG DL 2, 3 & 4) and elected not to enter the next exploration phase.  All Phase 1 exploration commitments have been met.  In accordance with the concession agreement, the balance of the exploration lands were relinquished.   The concession provides for 20 year development leases on commenced discoveries with a 5 year extension. The first exploration was extended 6 months to May 2017 which provided additional flexibility to complete the remaining Phase 1 drilling commitments in the Eastern Desert.