Dubai: Dana Gas, the UAE-based oil and gas company, said yesterday that its annual production rate for 2010 from its Nile Delta concessions in Egypt is an estimated 42,000 barrels of oil equivalent per day, a 20 per cent increase on 2009, with production commencing from seven new fields.
Dana, in a statement posted on the Abu Dhabi Exchange website, said it has decided to retain its 100 per cent interest in its Nile Delta concessions and to "continue operating them to maximise ultimate benefit for its shareholders rather than proceeding with the proposed farmout."
The company said the planned new gas processing plant to the east of the Nile river will be designed to process 120 million standard cubic feet per day (mmscfpd), compared with the original planned design of 50 mmscfpd.
"This, along with an ongoing increase in capacity at its El Wastani Plant, will bring Dana Gas' total production to some 400 mmscfpd (67,000 boepd excluding liquids) in mid 2012," Dana said.
Dana said it is also continuing its aggressive exploration campaign with a 14 well programme for 2011; the drilling of the first well, Sanabel-1, has commenced, targeting the deeper high potential Sidi Salim formation. Work meanwhile is ongoing to increase the productivity of the Abu Ballas formation by fracturing with two fractured wells due to be placed on production during January 2011, Dana said.
"Our ongoing excellent exploration performance with sixteen discoveries in the Nile Delta confirms to us that retention of our 100 per cent interest will deliver the maximum value to our shareholders," Dana Gas Chief Executive Ahmad Al Arbeed said.
