Dana Gas discovery in Egypt to add 1,600 boed in production potential

7/1/2013

Dana Gas discovery in Egypt to add 1,600 boed in production potential

SHARJAH -- Dana Gas, the Middle East's first and largest regional private sector natural gas company, has made a new gas discovery on the West El Manzala concession in the Nile Delta, Egypt.

The Begonia-1 discovery well encountered 15 m of net pay in a good quality sandstone reservoir of the Lower Abu Madi Formation. On test the formation produced 9.4 MMscf of gas with 133 bbl condensate. The evaluated resources for the Abu Madi Lower pay zone are between 7 and 15 Bcf, and around 100,000 bbl of condensate.

Dana said it is preparing to submit a development plan for this discovery as part of a Development Lease application to the country’s government. It is anticipated Begonia-1 will be tied into the existing South Abu El Naga Field flow line, which will take the gas to the El Wastani gas processing plant. Once fully developed, the field will add around 1,600 boed of production. The company’s average output for the first five months was 33,600 boed in Egypt.

Dana said it is continuing constructive discussions with the authorities on its remaining outstanding receivables. During first-quarter 2013, Dana collected $41 million, with a 100% revenue collection.

Begonia-1 marks Dana’s 25th successful gas discovery in Egypt since 2007. Total investments in Egypt have exceeded $1.8 billion, and the company is now the sixth-largest gas producer in Egypt, producing 170 MMscfd, 4,000 bpd of associated condensate and 250 tons of LPG a day.

In Kurdistan, the company’s 40% share of production in the Khor Mor Field for the first five months of 2013 was 27,700 boed. Production is expected to increase once the LPG production is resumed after repairs to the loading bay are complete in the next few weeks, the company said.

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