Dana Gas announces new discovery in Nile Delta

Dana Gas yesterday announced another gas discovery in one of the company's concessions in the Egyptian Nile Delta.

The Tulip-One well is set to add up to 30 billion cubic foot of gas to the company's reserves in Egypt, it said.

This comes soon after the announcement of three previous gas discoveries in the Nile Delta area: two dry gas discoveries at the firm's Sondos-One and Two wells, and one gas/condensate discovery at the Azhar-One well.

This is the result of Dana Gas' aggressive drilling campaign in Egypt, which began in 2008 and continues to add new gas reserves in 2009.

The Tulip-One well is located in the West El Qantara Concession, about 15km from the Company's South El Manzala gas processing facilities and seven kilometre from the recent discovery Salma Delta-One. The well was spudded on April 25 and reached a total depth of approximately 2,200 metres within the Messinian Abu Madi formation.

"The well encountered 11 metres of net pay in a good quality sandstone reservoir of the Abu Madi formation," Dana Gas said in a statement.

The production test yielded production of 11.4 million standard cubic feet per day of gas and 318 barrels of condensate per day.

"The discovery at the Tulip-One well represents our fourth discovery in our 2009 drilling campaign. We are delighted that the extensive prospect generation effort, followed by a very effective drilling campaign, continues to produce positive results into 2009 following the outstanding results of 2008, which will further boost the company's production," said Dana Gas Chief Executive Ahmed Al Arbeed.

Dana Gas Egypt President, Hany Elsharkawi, said the development plan for this discovery is currently being prepared. "The plan includes the drilling of a number of appraisal and development wells that will support the final assessment of the field and the construction of a new gas and condensate plant to accommodate the production coming from the nearby Salma Delta discovery as well."

Dana Gas is the sixth-highest natural gas producer in Egypt. The company ended 2008 with a daily production rate from its Egyptian operations of about 31,650 barrels of oil equivalent (boe) that has recently increased to about 35,000 boe due to the tie-in of El Basant field. A further rise is expected in June after the Sondos field tie-in.

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