Business | Oil & Gas
Dana Gas announces important gas discovery in Egypt
Dana Gas, the Middle East's regional private-sector natural gas company, has announced a gas and condensate discovery in its Egyptian concessions, marking the third discovery in the company's $170 million drilling campaign for 2008.
- Staff Report
- Published: 16:00 October 15, 2008
Sharjah: Dana Gas, the Middle East's regional private-sector natural gas company, has announced a gas and condensate discovery in its Egyptian concessions, marking the third discovery in the company's $170 million drilling campaign for 2008.
The "Al Tawil-1" exploratory well commenced drilling on September 5, 2008 and reached a total measured depth of 3,163 meters in the Qawasim formation. The well is located in the West Manzala concession, approximately 15 kilometres south of Dana Gas's El Wastani gas processing facilities.
The Al Tawil-1 well encountered 34 meters of net hydrocarbon pay in the Qawasim sandstone reservoirs with excellent porosity and permeability.
Upon testing, the well flowed at a daily rate of 23.5 million standard cubic feet of gas and 1027 barrels of condensate (totaling approximately 5000 barrels of oil equivalent boe per day).
The added recoverable reserves, resulting from the successful drilling of the well, are currently estimated at 90 billion cubic feet of gas (16 million boe), in addition to 4 million barrels of associated condensate, representing a 20 per cent increase to the current reserves of Dana Gas in Egypt.
Plans are underway to determine the optimum development scheme for the new discovery. Additional exploratory wells targeting similar objectives will be drilled in the West Manzala and the West Qantara concessions in 2008 and 2009.
Ahmed Rashid Al Arbeed, Executive Director of Upstream at Dana Gas, commented: "This is an important discovery which proves the high potential of the Qawasim formation, resulting in significant reserves addition to the company. The exploration program in Egypt has been very successful so far, and we are looking forward to more discoveries before the year's end."
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