E&P

The offshore well was drilled from onshore using directional drilling technologies. (Image source: Adobe Stock)

Chevron has started drilling a new well in the Nargis natural gas field in the Mediterranean Sea, as part of ongoing efforts to develop the field, discovered in 2022

The project is being developed by Chevron as the main operator, in partnership with Eni, as well as Mubadala Energy and Tharwa Petroleum Company. The Nargis field is located in the prolific East Nile Delta Basin of the Mediterranean Sea, approximately 50 km offshore.

Eng. Karim Badawi, Minister of Petroleum and Mineral Resources, reviewed the launch of drilling activities aboard the drilling vessel Stena Forth, recently arrived in Egypt to begin operations at the field.

The Minister said that the drilling of the new well is part of the Ministry of Petroleum and Mineral Resources' strategy to encourage international energy companies to accelerate the development of untapped gas discoveries, including the Nargis Field, and bring them into the development and production portfolio.

The Egyptian government is encouraging investment and incentivising exploration and production to reverse years of decline and reduce energy imports, a drive which is being given additional impetus by the current situation in the Middle East. These efforts seem to be paying off, with a high level of exploration activity and a number of promising discoveries being made.

The most recent is the discovery by Agiba Petroleum Company, the joint venture between the Egyptian General Petroleum Corporation (EGPC) and Eni, in the Western Desert, representing the company's most significant discovery over the past 15 years.

The Ministry announced that the discovery was achieved through the South Bostan-1X exploratory well, drilled using the EDC-9 rig operated by the Egyptian Drilling Company (EDC). Preliminary estimates indicate reserves of approximately 330 bcf of gas and 10 million bbl of condensates and crude oil, with total estimated recoverable reserves reaching 70 million bbl of oil equivalent.

The significance of the new discovery is further enhanced by its proximity to existing facilities and infrastructure, which will enable its rapid development and swift tie-in to the production network.

The well encountered multiple sandstone and limestone reservoirs, with a net pay thickness of 400 feet, highlighting the discovery's strong economic potential and production significance.

The new discovery reflects the success of the Ministry of Petroleum and Mineral Resources' incentives to encourage partners to intensify exploration activities in areas adjacent to existing fields. This approach has facilitated the identification of new discoveries in close proximity to established infrastructure and production facilities, eliminating the need for significant new infrastructure investments. As a result, development costs are reduced, time to first production is accelerated, and operating efficiencies are enhanced

In early May Eni made a new natural gas discovery in the Nile Delta region, with estimated production rates of around 50 Mmcf/d, following its gas and condensate discovery in the Temsah concession in the Eastern Mediterranean in April, with preliminary estimates of about 2 trillion cubic feet of gas and 130 million barrels of associated condensates.

Also this year, Dragon Oil announced a new oil discovery following the successful drilling of the South El Wasl ‘B.B2’ exploration well in the Gulf of Suez, with initial results indicating production rates above 2,000 bpd of oil. While US Apache, in collaboration with the Egyptian General Petroleum Corporation (EGPC), made a new natural gas discovery in the Western Desert, following the drilling of the SKAL-1X exploratory well in the South Kalabsha area, with initial test results indicating a daily production rates of approximately 26 million cubic feet (mmcf) of natural gas and 2,700 barrels of condensate.

the Strategic Energy Report 2025 outlines a robust, dual-pronged strategy focused on African operations.

The global energy landscape is undergoing profound shifts, driven by a decade of underinvestment in exploration and production that has been further exacerbated by geopolitical conflicts in Ukraine and the Middle East.

In response to these pressures, the Strategic Energy Report 2025 outlines a robust, dual-pronged strategy focused on African operations, balancing immediate, lower-risk production with long-term, high-reward exploration opportunities

Strategic Overview and Financing

The company’s core strategy balances lower-risk appraisal and development in proven basins with high-risk, high-reward exploration. In the near term, the priority is achieving 'first oil' at the Thali Production Sharing Contract (PSC) in Cameroon. Simultaneously, the company is maintaining selective exposure to promising exploration frontiers in Namibia and South Africa, a strategy validated by numerous major discoveries in the region since 2020.

To fund these developments and reduce the early-stage equity burden on shareholders, the company announced two major farm-out agreements in January 2025 with Prime Global Energies Limited. These transactions involve farming out a 42.5% interest in the Cameroon licence and a 25% interest in the Namibia licence, with both expected to complete in 2026. The South African licence already operates as a 50-50 joint venture with an industry partner.

Cameroon: Path to First Oil

Operational efforts in Cameroon are entirely focussed on the NJOM-3 well. The well's design and location have been optimised to target the thickest reservoir sections while minimising exposure to potential gas caps. The immediate operational plan is to drill, test, and then suspend NJOM-3 while preparing for further production wells and the installation of a Mobile Offshore Production Unit (MOPU).

Essential equipment, including a newly ordered mud-line suspension system, has already been delivered and safely stored at the port in Douala. While the final rig selection depends on receiving official documentation from the Ministry of Mines, Industries and Technological Development (MINMIDT), multiple rigs are available from late 2026 onward, making a Q4 2026 spud a distinct possibility.

Namibia: Seismic Analysis and Regulatory Approvals

In Namibia's PEL96 block, the company is evaluating options to acquire new, or reprocess existing, 2D seismic data to refine three specific areas of interest for future 3D seismic acquisition.

Operational progress has faced delays due to organisational shifts following the country's March 2025 presidential election. The new President created an Upstream Petroleum Unit (UPU) to oversee the Ministry of Mines and Energy (MIME) and develop adapted taxation and local content regulations. Despite these delays, the company reported in mid-May 2026 that the UPU has successfully completed its due diligence on their partner, Prime, and has recommended expediting the farm-out approval to the Minister. The company also successfully entered the First Renewal Period of the licence in June 2025.

South Africa: Awaiting Regulatory Clarity

Operations in South Africa remain in a holding pattern. The company and the wider industry are waiting for the resolution of environmental regulations and potential related litigation before they can initiate planned 3D seismic data acquisition over the deep-water section of the Algoa Gamtoos licence.

Operational Control and Sustainability Goals

The company strongly prefers to act as the operator of its assets to maintain strict control over costs and timelines. It keeps baseline costs low while retaining the ability to quickly scale up resources when project activity demands it by utilising flexible contracts with strategic partners like EPI for subsurface expertise and Bedrock Drilling for well management.

This operational growth is designed to align with the environmental and economic goals of the host nations. By increasing local oil and gas production, the company aims to support domestic economic development, significantly reduce reliance on liquid fuel imports, and displace less efficient, highly polluting diesel and fuel-oil power generation to help these countries meet their COP26 climate commitments.

Record Resources Inc. (TSXV: REC) has announced highly optimistic projections for its Loba oil discovery in Gabon.

Calgary-based Record Resources Inc. (TSXV: REC) has announced highly optimistic projections for its Loba oil discovery in Gabon.

Based on recent geological and geophysical studies, the company anticipates that a single initial well in the region could produce 5,000 barrels of oil per day (bbl/d).

This projection not only highlights the immediate viability of the block but also sets the stage for a broader multi-well development program capable of reaching 20,000 bbl/d across the Loba field complex.

The Catalyst: Loba Marine 2 and Regional Analogues

The company's immediate operational focus is the planned Loba Marine 2 well. Record Resources expects this well to flow at rates exceeding 5,000 bbl/d, provided it is equipped with a frac-pack and an electric submersible pump (ESP).

This confidence is anchored in the proven performance of the Batanga reservoir at the adjacent Barbier Southwest field, which targets the exact same geological formation. Record Resources' President and COO, Alain Mizelle, previously identified the Barbier Southwest field as a highly attractive development candidate in 2017. Today, that field has been successfully brought into production under the operation of Paris-based Perenco.

The broader regional data further supports this optimistic outlook:

• High-Performing Neighbors: Analogous wells located within 40 kilometres of the Loba Oil Complex, targeting the same Batanga reservoir, have demonstrated initial production (IP) rates of up to 7,600 bbl/d from a single completion.
• Historical Production: Nearby fields sharing similar geological traits have historically yielded massive outputs, demonstrating the mature yet prolific nature of the basin.

A Foundation of Historical Data

The current exploration efforts are built upon a solid foundation of historical discovery. The Loba Field was originally discovered by Elf-Gabon via the LOM-1 well, drilled in 60 metres of water.

Crucial data from this initial drilling revealed:

• A shallow oil zone featuring 27° API gravity oil within the Batanga reservoir.
• A substantial 140-metre gross oil column, translating to 70 metres of net pay.

Based on these historical metrics, the previous operator estimated the mean contingent resources at the Loba oil discovery to be 11.9 million barrels (MMbbls). Furthermore, the adjacent Loba Deep and Loba East prospects each carry mean prospective resources estimated at 11 MMbbls.

Strategic Financial De-Risking

For investors, one of the most compelling aspects of Record Resources' current position is its highly favourable financial structure. Operating as a carried partner within a newly formed consortium, the company is shielded from significant upfront capital expenditures.

Under the terms of its agreement with the Ngulu block operator, Record Resources is fully carried financially through the critical first phase of exploration and appraisal. This coverage includes:

• All seismic reprocessing activities.
• The drilling of the first well on the block to its total depth.

Consequently, the company will not face any cash calls until after the first well has been successfully drilled to total depth, effectively minimizing early-stage financial risk.

Record Resources continues to build its identity as an exploration and production company dedicated to advancing overlooked energy plays. While the company maintains an interest in natural hydrogen exploration in Ontario, Canada, the immediate spotlight is firmly on Gabon.

By leveraging historical data, proven adjacent production, and a risk-mitigated financial structure, Record Resources is positioning the Ngulu Block as a cornerstone asset capable of delivering substantial near-term production and long-term regional development.

The agreement is a key milestone in Eco's strategic framework agreement.

Eco Atlantic Oil & Gas Ltd has signed a definitive agreement to farm down a 37.5% working interest in Block 1 CBK offshore South Africa to Navitas Petroleum LP

The agreement is a key milestone in Eco's strategic framework agreement with Navitas which provided Navitas with an option to farm-in to Block 1 CBK. 

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, said, "We are incredibly excited about the successful exercise of the Block 1 CBK Option by Navitas, marking a significant advancement of our strategic relations. This quick exercise of the option not only strengthens the bond between Eco and Navitas but also propels us toward a promising future in South Africa's offshore oil and gas landscape and puts us in an active and enhanced exploration mode. Eco and Navitas' technical and operational teams have been working closely to analyse this block and the wider region along with other assets and areas of interest. Together, we are primed to leverage our combined expertise and resources to maximise our potential in the region and beyond.

"Importantly, this agreement not only adds cash to our strong balance sheet, but more importantly signifies the continued progress Eco has made in advancing its projects. Building on our recent farm down to BP in Namibia, we have now further deepened our strategic partnership with Navitas, working not only in South Africa but also in highly prospective acreage offshore the Falkland Islands in PL001, which Eco will gain further exposure to upon the upcoming completion of our acquisition of JHI Associates Inc. Additionally, Navitas also holds options to acquire 80% of Eco's interests in the Guyana Orinduik Block where we are progressing advanced discussions with the Government over the terms of the next exploration and appraisal stages, offering scope for our partnership to extend further. Overall, these milestones highlight how Eco has successfully executed its strategy of de-risking its portfolio of world-class assets through partnering with carrying, tier-one operators across the Atlantic Margins."