Vanguard announces oil discovery in Egypt

Vanguard Oil announced that its wholly owned subsidiary in Egypt has drilled the Tanan-1 well to a total depth of 8750 feet and is running casing in order to complete the well as an indicated oil discovery. The well is located on the West Esh El Mallaha Concession (WEEM), onshore Gulf of Suez, Egypt, 4.7 km north-west of Vanguard's Rabeh field and 2.5 km north of and on trend with the recent Tawoos-1 discovery.
Currently, the final logs are being evaluated in detail. Preliminary interpretation indicates that the main pay zone is in the Matulla over a 110 foot interval with an additional potential pay zone in the Duwi limestone. The Matulla was encountered approximately 240 feet structurally higher than the producing zones in the Tawoos-1 well.
Good shows of light oil (similar quality to Tawoos and Rabeh crude) were encountered while drilling in the Matulla and Duwi formations. Additional oil shows were encountered up- hole in the Rudeis formation that are being evaluated as to their structural and stratigraphic significance. Vanguard plans to immediately complete the well after casing and put the well on production in a manner similar to the Tawoos-1 discovery. Initial production rates will be announced at that time.

The Tanan-1 well results extend the indicated productive trend established by the Tawoos-1 discovery 2.5 km to the south and the oil tested at the Wadi el Sahl North-1 well 5 km to the south. The entire extent of the discovery remains uncertain as the well results are still being integrated with the 3D seismic interpretation.
Reserve estimates will not be meaningful until the integration process is complete and additional appraisal wells are drilled and evaluated. Appraisal drilling is planned for later this year after completion of the technical evaluation of the two discovery wells and the seismic reinterpretation.
Upon the completion of the Tanan-1 well Vanguard believes that it will have completed the requirements under the Farmout Agreement with its partner to earn an additional 31 % interest bringing its total working interest to 81 % in this area.