Orchid-1 Blossoms for Dana In Egypt

Dana Gas PJSC on Tuesday announced the ninth gas discovery from the Orchid-1 well. This new discovery follows its eight gas discoveries in Egypt announced throughout 2009 (namely Salma-1, West Manzala-2, Azhar-1, Tulip-1, Sharabas-1, Sama-1, Faraskur-1 and Marzouk-2).

The Orchid-1 well was drilled in the West Manzala concession of the Nile Delta, 1.3 kilometers to the west of the Azhar1 well, and was spudded on 15 December 2009, reaching a total depth of 1,700m in the Pliocene Kafr El Sheikh formation.

The well encountered 8.4 meters of net pay of excellent sand reservoir of Kafr El Sheikh formation, and tested dry gas at a rate of 12.6 million standard cubic feet of gas per day. Dana Gas is currently studying the options for producing Orchid-1 discovery through either its El Wastani or South El Manzala gas plants.

The preliminary estimated recoverable reserves of the Orchid discovery range between 10 - 50 billion cubic feet (bcf) of dry gas, pending further appraisal.

Dana Gas CEO Ahmed Al Arbeed, said, "We are very pleased with the continuing success of our Egypt drilling campaign, which started in 2008. This campaign has already yielded very positive results for us and we will continue with our exploration campaign, we will develop our discoveries, all aimed at growing Dana Gas production operations in Egypt."

Hany Elsharkawi, President of Dana Gas Egypt, said, "We have had a number of significant discoveries in Egypt in 2008 and 2009. It is clear that 2010 will also be a very busy year for us, as we develop all these discoveries and continue with our exploration drilling program in the Nile Delta and Upper Egypt. We look forward with confidence, building on the success to date."

Dana Gas is the sixth highest natural gas producer in Egypt.