Dana Gas Hits Paydirt in Egyptian Oil Concession

Dana Gas, the Middle East's first and largest regional private sector natural gas company, announced that the Al Baraka-4 well, drilled as an appraisal of the Al Baraka field in the Komombo Concession in southern Egypt, has discovered a new pool in the Six Hills "E" reservoir. The Al Baraka-4 well is currently on-stream producing at a rate more than 5 times the sustained flow rate from any previous well in the field.

The Al Baraka-4 well was spudded on December 5, 2009 and reached total depth of 1470 meters. It is located 470 meters to the southwest of Al Baraka-2 well. The well encountered 16 meters of net oil pay in the previously defined reservoirs in addition to 8 meters in the new Six Hills "E" layer. The new reservoir is proving to be more productive than the currently producing zones, having tested oil with natural flow to surface at a rate of 220 bopd. It is the first well on the Concession to flow oil to the surface through the natural energy of the reservoir, without requiring artificial lift. The well was also tested with artificial lifting at a maximum rate of 1300 bopd. The volume of reserves discovered is under evaluation.

Dr. Hany Elsharkawi, Dana Gas Egypt President said, "Al Baraka-4 expands a new era of petroleum exploration in Southern Egypt. The fact that oil has flowed naturally to surface from a new layer with better reservoir quality demonstrates that the Komombo basin is more prolific than originally thought."

Mr. Ahmed Al Arbeed, Dana Gas CEO, said, "Our team in Egypt has worked with dedication and professionalism to develop our understanding of this emerging oil province and we are very pleased that their expertise has rewarded us with this recent discovery. Dana Gas will proceed with development of Al Baraka Oil Field and will continue with its exploration program to explore the entire Komombo Concession."


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