Exploration of a frontier area in southern Egypt was begun in November 1976. Using current technology, including detailed ERTS photography, aeromagnetics, and geologic field studies, two basins later known as the Eastern Nile basin and the Western Dakhla basin were delineated. Preliminary stratigraphic studies suggested the presence of Late Cretaceous and early Tertiary marine rocks in these basins.

Acquisition of reconnaissance seismic data began in February 1977. This effort confirmed basin configuration and depth and defined areas of greatest potential. Concurrently, additional surface work described Jurassic rocks and suggested the presence of previously hidden Paleozoic sediments in the western basin. A synthesis of geochemical data indicated that petroleum source rocks were available for hydrocarbon generation.

The first well will be spudded in early 1979.

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