Dana Gas Egypt investment programme makes successful headway

Dana Gas has reported success in the initial stages of its US$100mn investment programme to increase Egypt’s gas production

The US$100mn investment programme, which involves the drilling of 11 new wells, is expected to significantly increase Dana Gas’s long-term production in Egypt and add approximately 80 bcf in recoverable gas reserves over the course of the two-year plan.

The company has received encouraging initial results from the ‘Begonia-2’ appraisal well, the first appraisal well within the Begonia development area in Egypt’s onshore Nile delta and the first of eleven appraisal and exploration wells planned under the investment programme. The well is estimated to contain nine billion cubic feet (bcf) of gas as an initial estimate, which is subject to increase. Begonia-2 will produce an additional five million cubic feet per day. The well is located in the "New El-Manzala" concession and is operated by the  El-Wastani Petroleum Company (Wasco).

The company has also begun to re-complete several wells in other geological layers, which are expected to add more reserves and enhance production. Work is currently underway on the Balsam-3 well, where estimated reserves are 4 bcf, with an anticipated additional production of 3 million cubic feet of gas per day. The successful recompletion of Balsam-3 is expected to reduce the risk associated with drilling exploration wells in the area and further enhance output.

Richard Hall, CEO, Dana Gas, said, “We have been developing and producing gas in Egypt for over a decade, and the signing of the concession area consolidation agreement with the Egyptian Natural Gas Holding Company (EGAS) late last year has allowed us to acquire additional areas under improved financial terms, enabling us to launch this new phase.

“The success of drilling this well opens vast prospects for gas production in the 'Begonia' area and presents promising future opportunities for expansion and growth. It will also extend the operational life of our assets in Egypt. We are fully committed to making every effort to ensure the success of the programme and its efficient and timely execution. Dana Gas reaffirms its strong commitment to reinvesting the payments it receives from the Egyptian government into executing this ambitious programme and supporting future development projects in the country.”