Dana Gas, the Middle East's first and largest regional private sector natural gas company, said its production from Egypt’s Nile Delta increased 20 per cent to 42,000 barrels of oil equivalent per day (boepd) in 2010 following commencement of seven fields during the year.
The company expects this annual growth to continue during current year and the next.
In a statement sent to Abu Dhabi Securities Exchange, the company revealed that it made seven discoveries out of 11 exploration wells drilled last year in the Nile Delta zone, pushing its shares up by 1.3 per cent to Dh0.78 in the early morning trade on Tuesday.
Ahmed Al Arbeed, CEO of Dana Gas, said the company made “sixteen discoveries in the Nile Delta over the past three years, reinforces our view of the remaining potential of this first class acreage and thus confirms to us that retention of our 100 per cent interest will deliver the maximum value to our shareholders.
“Our production continues to increase, with current production in the Nile Delta at 246 mmscfpd of gas plus 7,350 barrels per day of condensate and LPG, a total of 48,000 barrels of oil equivalent per day. We are targeting similar annual increases in production during 2011 and 2012.”
“Our team in Upper Egypt continues to work hard to enhance production from the Al Baraka Field with further development drilling planned in 2011, alongside our exploration programme to test the vast potential of the Komombo Concession.”
The statement said that the company will not offload stake in any of the fields and will retain 100 per cent interest in Nile Delta Concessions. It also ruled out proposed farmout.
Dana Gas is also upgrading existing plants and building new capacity to bring new fields online.
The planned new gas processing plant to the East of the Nile River will be designed to process 120 million standard cubic feet per day (mmscfpd), a considerable increase compared to the original planned design of 50 mmscfpd, which will contribute significant value as the South Abu El Naga and Salma North discoveries have high liquid content.
This, along with an ongoing increase in capacity at its El Wastani Plant, will bring Dana Gas’ total production to some 400 mmscfpd (67,000 boepd excluding liquids) in mid-2012.
The company is also continuing its exploration campaign with a 14 well programme for 2011. The drilling of first well, Sanabel-1, has commenced targeting the deeper high potential Sidi Salim formation.
On the Komombo Concession in Upper Egypt, Dana Gas along with 50 per cent joint operator Sea Dragon Energy, has produced oil during the year at an average gross production rate of 620 barrels of oil per day (bopd) and is currently producing at approximately 800 bopd. Work is ongoing to increase the productivity of the Abu Ballas formation by fracturing with two fractured wells due to be placed on production during January 2011.
During 2010, 480 kilometres of 2D seismic was acquired and processed, and the first exploration well, Memphis-1, commenced drilling in December.