Independent oil and gas exploration and production company Apex International Energy has signed two agreements to acquire concessions covering 1.7 million acres in the Abu Gharadig Basin in Egypt's Western Desert.
The concessions encompass the West Badr el Din, which covers 4,180km², and the 2,535km² South East Meleiha.
Both blocks were secured following bidding conducted by the Egyptian General Petroleum (EGPC) last year.
Apex International Energy Egypt deputy general manager and exploration manager Raed Saba said: "These blocks provide promising opportunities for value creation in the Western Desert, where we have extensive experience and look forward to building a long-term presence.
“We are eager to get started on drilling wells to maximise the full potential of these blocks, while pursuing additional opportunities to grow our business in Egypt."
During the first phase of exploration, Apex will invest at least $27.4m to conduct detailed geological studies, as well as acquire and process 3D seismic and drill exploratory wells.
Apex International Energy founder and CEO Roger Plank said: "We thank Eng. Tarek El Molla, Minister of Petroleum and Mineral Resources, for his support during this transaction and for encouraging investments like ours in Egypt's attractive oil and gas market."
The company is backed by private equity firm Warburg Pincus and intends to establish an exploration and production business through asset acquisitions and investments in drilling, infrastructure and production enhancement.
It is additionally focused on farm-ins and new concession bid rounds to boost acreage.
