The East Lagia concession is located in the Sinai Peninsula, onshore Egypt. It comprises 2,989 km² of acreage and is owned and operated by Vegas with 100% working interest. The license was awarded under the March 2012 EGPC bid round but not ratified until November 2013. It was subsequently re-assigned to the wholly owned subsidiary Vegas East Lagia Inc., registered in Liberia with a branch office in Cairo.

Due to the historic security issues in this region, the concession has been off-limits for normal access and exploration activity. Consequently the Initial Exploration Period has not expired (now due 10 months and 18 days after the commencement of mine clearance by the military). Despite this, all initial work and financial commitments have been met. Technical progress has been limited but possible and the analysis of the ground gravity and magnetic data provided some insights into the hydrocarbon potential of the block. A number of large potential structures have been identified for high grading towards a drilling inventory. A series of possible highs and sub basins are now mapped with apparent local culminations juxtaposed to significant faults. Full reports are available after execution of a CA.

In addition to the new sources of data above, the area contains mature oil fields nearby, some 8 and 16 km distant. The fields Sudr, Asl and Ras Matarma produce from the Miocene sandstones and the Eocene limestones. Oil in place figures for these offset fields are materiel being typically c. 250 mmbo. The discoveries were made back in the 1940's and the area has been little explored since.
 
Vegas are a well established operator in Egypt with over 25 years of country experience. During this time Vegas discovered and developed over 450mmboe of 2P reserves across four concessions as operator. Vegas will retain operatorship post any farm out transaction.

The structures identified will be further de-risked by the planned and approved acquisition of 550 line km of 2D seismic data. All the necessary contracts have been approved by EGPC. Operations shall commence once the Army begins mine clearance of the area. The seismic programme is in addition to the contractual work obligations and was deemed necessary in order to meet the mandatory 25% relinquishment under the PSA at the end of this exploration period. Surface Geochemical Survey is also planned during field operations. Costs for each are budgeted at $3.9mm and $0.4mm respectively. Mobilisation is planned for November 2018 in case vibroseis source will only be used.

Vegas are seeking a technical partner to join in the exploration of this exciting acreage. A material working interest of up to 35% will be available to a new entrant. Pro-rata funding of the currently budgeted exploration costs (total $4.3mm) and a consideration for back-costs are being sought at this time. Vegas are a private company with the ability to complete deals in an efficient manner.

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