Dana Gas confirms commercial discovery onshore Egypt

As energy demand continues to grow, Middle East-based natural gas company, Dana Gas PJSC, has confirmed commercial gas presence onshore Nile Delta in Egypt, in line with its US$100mn investment programme to support gas production

Initial results from drilling and logging the Begonia-2 appraisal well, which is the first of the 11 appraisal and exploration wells under the Begonia development area, have suggested the presence of 9 bn cu/ft of gas estimates that is likely to increase further. Drilling continues with the EDC-54 rig, and the next well is set to spud in August. 

Profits from the Begonia development will significantly contribute to the company's million dollar gas programme, adding approximately 80 bn cu/ft in recoverable gas reserves over the course of the two-year plan. 

Located in the New El-Manzala concession and operated by the joint venture, El-Wastani Patrolmen Company (Wasco), the Begonia-2 well generates an additional 5 mn cu/ft gas per day from enhanced recovery practices. 

Egypt's Ministry of Petroleum and Mineral Resources is especially enthusiastic of the project, anticipating its domestic natural gas production potential. The government is also banking on the project's contribution towards solidifying the national energy system and driving economic development.

To boost and maintain production count, the company is focusing on well recompletions in other geological layers too. The Egyptco rig which was in plug and abandonment mode has been redeployed by the company for recompletion activities in the Balsam-3 well. Output enhancement besides, the recompletion eliminated the risks that accompany drilling exploration wells. It generated a total 4 bn cu/ft of gas while ensuring an additional yield of 3 mn cu/ft of gas per day.

Richard Hall, CEO, Dana Gas, said, “The successful drilling of the appraisal well 'Begonia-2' and the recompletion of the ‘Balsam-3’ well marks a significant strategic milestone. It signals the first steps in our ambitious US$100mn investment programme in Egypt, which includes drilling 11 new wells. We have been developing and producing gas in Egypt for over a decade, and the signing of the concession area consolidation agreement with the Egyptian Natural Gas Holding Company (EGAS) late last year has allowed us to acquire additional areas under improved financial terms, enabling us to launch this new phase.

"The success of drilling this well opens vast prospects for gas production in the 'Begonia' area and presents promising future opportunities for expansion and growth. It will also extend the operational life of our assets in Egypt. We are fully committed to making every effort to ensure the success of the programme and its efficient and timely execution. Dana Gas reaffirms its strong
commitment to reinvesting the payments it receives from the Egyptian government into executing this ambitious programme and supporting future development projects in the country. Regular and timely payments from our partners are crucial to sustaining these investments.”