Kuwait Energy makes new oil discovery in the Gulf of Suez area in Egypt

Kuwait Energy plc (“Kuwait Energy”), one of the fastest growing independent oil and gas exploration and production companies in the Middle East, operating Area A on behalf of the license holder Egyptian General Petroleum Corporation, today announced a new exploration success with their West Ahmad-1X oil well, located in Area A in the Gulf of Suez, Egypt, adjacent to the Shukheir North West Field.

Kuwait Energy is the operator of the concession, in which it holds a 70% working interest. The remaining 30% interest is held by Petrogas E&P, of Oman.

The West Ahmad-1X well encountered oil in the Kareem formationand initial tests showed a production flow rate of 1,250 barrels of oil per day (bopd). This is the fourth explorationsuccess in the Area A concession, and the 17th discovery in Egypt for Kuwait Energy since 2008.

Kuwait Energy plc Chief Operations Officer, Mohammad Alhowqal, said: “This is another great success in a mature field that has been producing since 1960. Our new oil discoveries in Area A have significantly increased gross production in the area from 2,800 to 7,250 bopd since commencing operatorship in 2008. We look forward to continued success and to reaching the maximum potential of this field.”

Egyptian operations contribute the largest share to Kuwait Energy’s current production.The 2011 production level excludes the four discoveries made in the Abu Sennan concession.

Kuwait Energy is the operator of three assetsin Egypt namely the Area A, Burg El Arab and Abu Sennan, and has working interest shares in two other non-operated assets: the Mesaha and East Ras Qattara concessions.