Dana Gas Adds to Nile Delta Discoveries with Dabaaya 2
Dana Gas has made a new gas discovery on its Egyptian concessions, adding yet another new well to what were already considered important earlier discoveries by the Company in Egypt's Nile Delta first announced last August.
The Dabayaa-2 delineation well was drilled by Centurion Petroleum Corporation, the upstream division of Dana Gas in Egypt, on the eastern side of the West Manzala concession, in order to appraise the Dabayaa-1 discovery well in the Lower Abu Madi Sandstone formation.
The well was drilled to a total depth of approximately 3,000 meters and encountered gas bearing zones in both the Upper and Lower Abu Madi formations. The Lower Abu Madi formation was tested and found to flow at a gas rate of over 10 million cubic feet per day, and 240 barrels per day of condensate, and will provide a further boost to Dana Gas production and revenues from Egypt.
"We are very pleased with the results we obtained from Dabayaa-2, which confirm our high expectations for the potential of the Abu Madi formation in this block," said Dr. Hany El-Sherkawi, Dana Gas Egypt Country Director. "The Lower Abu Madi formation was tested previously, but this is the first time that we have been able to confirm the productivity in the Upper Abu Madi formation," he continued. "The gathering pipeline from Dabayaa-2 is under construction, and the well should be flowing on-stream before the end of December."
Dana Gas is the sixth largest natural gas producer in Egypt from among the 64 companies operating in the country. A report this week by the Middle East Economic Survey (MEES) confirmed that Dana Gas was the only private company from the region to make new Middle East oil & gas discoveries in 2007, with important discoveries already announced from wells drilled earlier this year including: El-Wastani EWW-2, West Manzala-1, and Komombo -1, which was re-named "Al-Baraka" by the Egyptian Petroleum Minister, HE Eng. Sameh Fahmy.
Last month HE Dr. Ahmed Nazif, Prime Minister of Egypt, received the Dana Gas Executive Chairman, Mr. Hamid Dhiya Jafar, who updated the Prime Minister on the Company's ongoing operations and investments in Egypt, including the first commercial oil discovery ever made in Southern Egypt in early September 2007 and further projects under development.
Mr. Jafar also presented the "Dana Gas City" proprietary concept of developing local gas-based industries which the Company is developing in several countries of the Region, and which encompasses an integrated community optimizing natural gas utilization. The Dana Gas City concept is in line with Egypt's current policy of maximizing economic and social benefits of its natural gas resources to the country. Egypt's natural gas reserves have doubled in the last five years to over 70 trillion cubic feet.
Dana Gas is currently also leading a consortium to build and operate the Gulf of Suez Gas LPG Plant, in partnership with the Egyptian Natural Gas Holding Company (EGAS) and the Arab Petroleum Investment Corporation (APICORP), with construction on schedule for the first quarter of 2008.
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