Dana Gas received a 100 percent working interest in the North El Arish Block 6 concession area in the Nile Delta. This concession is situated in the eastern part of the Mediterranean Sea that lies in water depths that range in or around 3,281 feet spanning about 736,374 acres.
The concession area has an eight-year exploration period that includes three phases, an initial four-year exploration period and two additional two-year extension periods, the company said in a released statement. A 20-year development lease period will be granted based on an approved commercial discovery.
Dana expects to posses the concession in late 2013 following regulatory approval.
“We are pleased with the outcome of this bid round and look forward to the exploration and development of this very prospective new concession," said Rashid Al-Jarwan, executive director and acting chief executive officer of Dana Gas in a statement. "The award of this concession demonstrates Dana Gas' confidence in Egypt over the long term and the company's desire to optimize its coast investments and maximize the value of its portfolio of opportunities."
The company currently produces gas and associated liquids from 10 fields in the Nile Delta. In 2012, the company produced around 32,200 barrels of oil equivalents per day with hopes of increasing this amount in 2013 as compression facilities were added and new fields were brought online.
Dana also pre-qualified as a non-operator in Lebanon's first offshore licensing round which will open for bids in May. There are 10 deep water exploration blocks that are up for bids and lie in water depths ranging from 4,921 to 8,202 feet.
Furthermore, Eni announced it received a deepwater exploration block, Block 9, which is also situated in the eastern Mediterranean of Egypt.
Through its fully owned affiliate, IEOC, Eni will wholly own and operate the block, which spans 930,352 acres. The block lies in water depths ranging from 4,593 to 5,906 feet.
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