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Dubai: Dana Gas, the Middle East's first private-sector natural gas company, has announced the discovery of a new gas well drilled in its Egyptian concessions, adding to what were already considered important discoveries by the company in Egypt's Nile Delta, first announced last August.
The Dabayaa-2 delineation well was drilled by Centurion Petroleum Corporation, the upstream division of Dana Gas in Egypt, on the eastern side of the West Manzala concession, in order to appraise the Dabayaa-1 discovery well in the Lower Abu Madi Sandstone formation.
The well was drilled to a depth of approximately 3,000 metres and encountered gas-bearing zones in both the Upper and Lower Abu Madi formations.
The Lower Abu Madi formation was tested and found to flow at a gas rate of over 10 million cubic feet per day, and 240 barrels per day of condensate, and will provide a further boost to Dana Gas production and revenues from Egypt.
"We are pleased with the results from Dabayaa-2, which confirm our high expectations for the potential of the Abu Madi formation in this block," said Hany Al Sherkawi, Dana Gas Egypt country director.
"The Lower Abu Madi formation was tested previously, but this is the first time that we have been able to confirm the productivity in the Upper Abu Madi formation," he said. "The gathering pipeline from Dabayaa-2 is under construction, and the well should be flowing onstream before the end of December."
Profile
Dana Gas is the sixth-highest natural gas producer in Egypt among the 64 companies operating there.
A report last week by the Middle East Economic Survey (MEES) confirmed that Dana Gas was the only private company from the region to make new Middle East oil and gas discoveries in 2007, with important discoveries already announced from wells drilled earlier this year.
These include Al Wastani EWW-2, West Manzala-1 and Komombo -1, re-named Al Baraka by the Egyptian petroleum minister, Sameh Fahmy.
Dana Gas is also leading a consortium to build and operate the Gulf of Suez Gas LPG plant, in partnership with the Egyptian Natural Gas Holding Company and the Arab Petroleum Investment Corporation.
Meeting: Progress report
Last month, Ahmad Nazif, Prime Minister of Egypt, received the executive chairman of Dana Gas, Hamid Dhiya Jafar, who updated the Prime Minister on the company's ongoing operations and investments in Egypt, including the first commercial oil discovery made in southern Egypt in early September 2007 and further projects under development.
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