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Nov 20 2010

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E.ON Ruhrgas Extends Mideast Reach with First Gas Discovery in Algerian Concession

In cooperation with Sonatrach , the Algerian National Oil & Gas Company, E.ON Ruhrgas E&P, the operator of the Rhourde Yacoub exploration block, has successfully completed the drilling and testing of the Zemlet Cherguia-1extension (ZCH-1ext) exploration well. The gas field is located in the eastern Algerian Sahara, around 250 kilometres south-east of the town of Hassi Messaoud.

"This result is another important step for our upstream business," said John Roper, E.ON Ruhrgas Head of Middle East. "The success of Rhourde Yacoub highlights E.ON's commitment to investing in the Algerian exploration and production industry," stressed Roper.

E.ON Rurhgas, the Essen-based gas arm of Germany's largest utility E.ON, has established a presence across the Middle East in recent years which includes Abu Dhabi and Doha, two of the region's largest suppliers of liquefied natural gas. E.ON is one of the world's largest investor-owned power and gas companies which has more than 88,000 employees and generated just under €82 billion in sales in 2009. The integrated business model in power and gas extends from power generation and gas production to distribution and sales.

The Rhourde Yacoub block is operated by E.ON Ruhrgas E&P with an equity share of 49 percent. Sonatrach as the other joint venture partner holds the majority of 51 percent. The well is the second exploration well drilled by E.ON Ruhrgas E&P in Rhourde Yacoub.

In 2003, E.ON Ruhrgas started its exploration and production activities with a few specialists. Today it is a highly promising business with 200 employees and additional experts providing a strong segment as gas producer for E.ON Ruhrgas. In 2009, E.ON Ruhrgas E&P produced 4.4 billion cubic metres of natural gas (at equity gas included). Production will increase significantly over the next years as more fields are brought on stream.

-Ends-

About E.ON Ruhrgas
E.ON Ruhrgas is the lead company of the Pan-European Gas market unit of the E.ON Group, with a purchasing and sales volume of approximately 700 billion kWh of gas and a turnover of over € 20 billion a year. To guarantee long-term supply security, E.ON Ruhrgas has built up a diversified purchasing portfolio, is active in the exploration and production of gas and is also involved in the LNG business. It has a presence in more than 20 countries across Europe and has also established offices in the UAE and Qatar to develop its business in the Middle East.

About Rhourde Yacoub Gas Block:
Rhourde Yacoub is located in the gas and oil-prone Berkine Basin where exploration started in the 1990s. In the second half of 2008, E.ON Ruhrgas E&P took part in the first Algerian licensing round after a new hydrocarbon law was introduced in 2005. In December 2008, E.ON Ruhrgas E&P won the bid for the Rhourde Yacoub licence which covers 1091 square kilometres.

The successful well proved gas/condensate in the Tournaisian F1-A formation. The F1-A formation flowed at well test rates of 19,500 m3/h with associated condensate rates of 4.7 m3/h with a flowing well head pressure of 3,500 psi on a 32/64 choke.

Please visit E.ON Ruhrgas at:
www.eon-ruhrgas.com
www.eon-ruhrgas-ep.com

For more information please contact:
Raghida Haddad
Senior Corporate Communications Consultant
Gulf Intelligence.
Dubai Mobile: +971-50-9403428
Email: raghidahaddad@gulfintelligence.com

© Press Release 2010