Dana Increases Stakes Offshore Egypt
Dana Petroleum has signed an agreement with BG to acquire a 50% interest in the El Manzala Offshore Area Concession, located in the Mediterranean Sea, offshore Egypt. The deal is subject to normal regulatory approvals.
The El Manzala Offshore Area Concession is a large PSC area, covering some 630 sq km, situated in the prolific offshore Nile Delta area of Egypt. The area already has significant coverage of both 2D and 3D seismic data. Dana will fund the cost of the next exploration well up to an agreed cap in order to earn the 50% interest. Dana has assessed that this area is prospective in both the Pliocene play, analogous to Dana's two gas discoveries in the West El Burulus concession (WEB-1 and Papyrus), as well as having further prospective in the deeper high pressure horizons.
This deal continues Dana's program to grow its business in Egypt and the offshore Nile Delta in particular, which provides world-class upside opportunities for near-term drilling and development.
Commenting on the news, Tom Cross, Dana's Chief Executive, said, "We look forward to working with BG, 50/50 in this large concession in the eastern part of the Nile Delta, with a plan to drill in early 2011. This further extends Dana's strategic position and growth opportunities across Egypt, where we are already 50/50 partners with Gaz de France in the western area of the Nile Delta, together having made two gas discoveries with our first two wells at WEB-1 and Papyrus. Dana is also 50/50 partners with Apache in the Western Desert where the group has made, and successfully brought onstream, several oil discoveries.
In addition, Dana is currently drilling at Fin, close to our recent Lorcan oil discovery onshore in the Gulf of Suez (Dana 100%) and also at Nefertiti, offshore Gulf of Suez (Dana 65%)."
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