Dana Gas plant Image Credit: Gulf News archives

Abu Dhabi: Dana Gas on Tuesday has commenced drilling operations at its Merak-1 offshore well in Egypt.

Merak-1 is believed to contain up to 4 trillion cubic feet (TCF) of prospective natural gas resources.

The well, located in the North El Arish offshore Concession Area (Block 6), is part of the highly productive Eastern Mediterranean Basin.

“Whilst we continue to optimise production from our 14 existing fields and explore new prospects in the Nile Delta region, the potential addition of new world class gas resources offshore presents an opportunity for significant growth in our Egypt business that would be transformative for Dana Gas,” said Dr Patrick Allman-Ward, CEO of Dana Gas.

The Sharjah-based oil and gas firm earlier this month reported a 150 per cent increase in net profit in the first quarter of 2019 to $35 million (Dh128 million) due to an increase in production in the Kurdistan Region of Iraq (KRI) as well as lower financing costs.

Production in the first quarter averaged 68,700 barrels of oil equivalent per day (boepd), a 6 per cent increase when compared to the 65,000 boepd produced in the first quarter of 2018.