Cairo-based independent oil and gas company Cheiron has announced a new oil discovery in the Geisum and Tawila West concession, in the Southern Gulf of Suez offshore Egypt.

The new discovery was made by the exploration well GNN-11, which was drilled into a fault block to the east of the GNN oil field development.

The well encountered 165ft of good quality vertical net pay in the Pre-Miocene Nubia formation, with the main GNN field’s producing reservoir in the Nukhul formation.

Cheiron said that it is the first time the Nubia has been found to be oil-bearing in the GNN area of the concession.

The company drilled the well from the GNN Early Production Facility (EPF), which was recently installed and started production at a rate of more than 2,500bopd.

Cheiron, in its statement, said: “As a result of the new well, and the successful drilling campaign conducted to date on the field, the gross oil production from the Concession has reached 23,000bopd, compared to 4,000bopd before the GNN field was developed.

“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.

“A further 3 wells can be drilled from the EPF, and these will be used to complete the current phase of the GNN drilling program.”

Cheiron, through its affiliate PICO GOS, holds a 60% working interest and operatorship in the concession, with Kufpec holding the remaining 40% interest.

PetroGulf Misr Joint Operating Company, on behalf of Egypt’s national oil company Egyptian General Petroleum Corporation (EGPC) and partners, manages the field operations.

The Egyptian oil and gas company said that its new Nubia discovery validates the exploration potential in the northern area of the concession.

Together with its partner Kufpec, Cheiron is planning to drill at least three additional exploration wells in the concession area.

Furthermore, the new discovery shows that the Gulf of Suez, a relatively mature hydrocarbon province, still has significant remaining exploration potential, said Cheiron.