Dubai: Dana Gas, the UAE-based oil and gas company, said on Sunday it made a new gas discovery in Egypt's Nile Delta, and gas production from its Sharabas and Faraskur fields, also in Egypt, started in August via its Al Wastani gas plant.
"The discovery at the South Abu Al Naga-1 ST well adds significantly to the company's hydrocarbon reserves," said Hany Al Sharkawi, Dana Gas Egypt president, in an emailed statement.
The gas discovery well South Abu Al Naga-1 ST is located in the West Al Manzala concession.
"A multi-rate test was carried out for a 12-metre interval in the Abu Madi Lower reservoir and yielded a production rate of 19.4 million standard cubic feet per day of gas and 1,160 barrels per day of condensate," the company said.
This is the fourth gas discovery for Abu Dhabi-listed Dana Gas in Egypt this year following three previously announced gas discoveries — Al Pansieya-1, South Faraskur-1 and Ward Delta-1.
Dana Gas said the preliminary reserves estimate for the South Abu Al Naga-1 ST is in the range of 50 billion to 90 billion cubic feet of gas, with 1 million to 2 million barrels of associated condensate. The discovery will be further appraised, with development options to be studied subsequently, the company added.
Dana Gas also said new production from its Sharabas and Faraskur fields boosted the company's total Egypt output to 230 million cubic feet a day of gas and 7,000 barrels a day of condensate and LPG as of August 31, according to the statement.
This is equivalent to 45,500 barrels of oil equivalent a day, a 20 per cent increase on the production rate at the start of 2010. Ahmad Al Arbeed, Dana Gas CEO, said "Our dedicated teams in Egypt continue to deliver excellent results."
