118
(mainly Iraq projects). In addition, the Group currently plans an additional $207.5 million in discretionary capital
expenditure, primarily focused on developing further production in Egypt and, in the longer term, in Iraq.
To fund the projected capital expenditures in the Group’s exploration, appraisal and development programmes, the
Group expects to use amounts available under the Group’s borrowings and, over the medium to long term, operating
cash flows resulting from production and sale of oil, natural gas and condensate
and additional capital markets funding,
in the form of both equity and debt.
The Group’s operations
Egypt
Summary
The Group currently derives a substantial majority of its production from its operations in Egypt. In Egypt, the Group
currently produces oil from 16 of the 17 fields within the Area A, Burg El Arab, ERQ and Abu Sennan licence areas.
Over the period from 1 January 2008 to 31 March 2014, the Group has achieved a 48% exploration drilling success rate
with respect to its Egyptian assets, with 21 successful exploration wells. Egypt generated 69.0% of the Group’s average
daily working interest production and 76.6% of the Group’s revenue in the three months ended 31 March 2014, and
66.5% of the Group’s average daily working interest production and 73.7% of the Group’s revenue in 2013. The Group
holds a working interest in four licences in Egypt, one of which is governed by a service contract and three of which are
governed by PSCs. The ERQ licence area is the Group’s most significant production asset, representing approximately
40.5% of the Group’s total working interest oil production in 2013 and 43.2% in the first three months of 2014.
