UAE's Dana Gas Announces New Discoveries in Egypt's Nile Delta

New Gas Discoveries in Egypt's Nile Delta

 New Gas Discoveries in Egypt's Nile Delta

UAE's Dana Gas announced encouraging initial results from the Begona-2 appraisal well, in addition to the commencement of recompletion work on the Balsam-3 well within the Nile Delta onshore concession in Egypt.

 This is part of the first phase of a massive $100 million investment program aimed at boosting domestic gas production and increasing reserves. The company explained in a statement on Wednesday that the Begona-2 well represents the first appraisal well in the Begona development area. Initial drilling results showed that the well contains 9 billion cubic feet of natural gas, a figure that is likely to increase.

 The well is expected to add approximately 5 million cubic feet per day to production. This achievement is a pivotal step in Dana Gas' investment program, which includes drilling 11 new wells over the next two years. The plan aims to increase recoverable reserves by approximately 80 billion cubic feet, strengthening the company's position as a major gas developer in the region.

In parallel with the drilling plan, the company has begun recompletion operations for the Balsam-3 well in other geological formations, using an EGYPTCO drilling rig after it was reactivated from backfill. The well's estimated reserves are approximately 4 billion cubic feet, with an expected production increase of 3 million cubic feet per day, contributing to reducing the risks associated with drilling new exploration wells.

An Ambitious Program

Dana Gas CEO Richard Hall confirmed from the drilling site that these successes represent a strong start to the ambitious program launched after signing the concession agreement with the Egyptian Natural Gas Holding Company (EGAS), which provided new areas with favorable financial terms.

 Hall pointed out that the regularity of payments from the Egyptian government contributed to supporting the continuity of investment, stressing the company's commitment to reinvesting these returns in expanding its operations in Egypt and contributing to future energy development plans.