Egypt's current power generation capacity relies primarily on oil and natural gas. The Egyptian government's strategic objective of alternative energy source development is under severe strain due to the country's growing energy needs. Successive Egyptian governments have prioritized increasing renewable energy production as part of the country's overall energy output, with geothermal energy included as one of the new sources in Egypt's renewable energy program. Previous studies have highlighted the suitability of areas around the Red Sea and the Gulf of Suez for geothermal energy exploration; among these, the Hurghada and El Gouna area, located south of the Gulf of Suez at the Sinai Peninsula's triple junction with Africa and Arabia, is considered the most promising geothermal resource region. This study's main objective is to develop conceptual and numerical models of the Hurghada–El Gouna geothermal area based on temperature data obtained from deep onshore and offshore oil and gas wells, in addition to existing geological and structural information. Our numerical simulations reveal the presence of geothermal resources in the area, which are attributed to high, fault-controlled heat flow and deep subsurface water circulation. The rate of motion of water increases as it moves vertically through the fractures. After analyzing the simulation results, we assessed the feasibility of geothermal energy generation. Our findings indicate that the studied region has the potential to produce approximately 75 MW of electricity over a 25-year lifespan and 37.5 MW over a 50-year lifespan.