Energy company Cheiron has announced oil discovery at the Geisum and Tawila West concession in the Southern Gulf of Suez offshore Egypt, following the drilling of the GNN-11 exploration well.

Cheiron, through its PICO GOS affiliate, operates the concession with 60% stake while Kuwait Foreign Petroleum Exploration Company (Kufpec) owns the remaining 40% interest.

The field operations are managed by Egypt's Petrogulf Misr Joint Operating Company, a joint venture between the Egyptian General Petroleum Corporation and the Cheiron and Kufpec.

Drilled into a fault block to the east of the GNN oil field development using GNN early production facility (EPF), the GNN-11 well encountered good quality vertical net pay of 165ft in the Pre-Miocene Nubia formation.

The main GNN field’s producing reservoir is in the Nukhul formation.

Cheiron said that the well has production rate of more than 2,500 barrels of oil per day (bopd).

In a press statement, Cheiron said: “As 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.”

The EPF is located in the central area of the GNN oil field. It includes a conductor support platform, a mobile offshore production unit and an oil export pipeline tied back to the existing production complex, Geisum Star.

Cheiron said that additional three wells could be drilled from the EPF. This would complete the current phase of the drilling programme at the GNN field.

In statement, the energy firm said: “The new Nubia discovery confirms the exploration potential in the northern area of the Concession and Cheiron and Kufpec are planning to drill at least three additional exploration wells in the Concession area.

“In a broader sense, the discovery also demonstrates that whilst the Gulf of Suez is a relatively mature hydrocarbon province, it still has significant remaining exploration potential.”