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Dana Makes Second Gas Discovery Off Nile Delta

Source: www.gulfoilandgas.com 2/10/2010, Location: Africa

Dana is pleased to announce that it has made a second gas discovery in the West El Burullus concession, offshore Nile Delta, Egypt. To date, Dana and GDF Suez have drilled two wells in this concession and made two discoveries. Dana holds a 50% interest in the discovery and concession area, which contains numerous additional prospects at both shallow and deeper horizons. GDF Suez (operator) also has a 50% stake in the concession.

The Papyrus-1X well was drilled in a water depth of approximately 20m to a total measured depth of 1990m, targeting a Pliocene prospect consisting of a turbiditic sand system. The well encountered good quality gas bearing channel sands and an extensive set of wireline log data was acquired over the reservoir section.

A multi-rate drill stem test has been completed. The well flowed at rates of up to 33 million standard cubic feet per day with 442 barrels of condensate per day. The flow rates during the test were constrained by the drill stem test equipment and it was very encouraging that downhole pressures remained high during the flow test.

The data will now be fully analysed and the commerciality of this discovery, along with the previous WEB-1X discovery, will be discussed with EGAS. Dana and GDF Suez are currently evaluating concepts that would enable a combined early development of these two neighbouring gas discoveries.

The Papyrus-1X well is being suspended for potential re-entry and future use as a gas production well. The drilling rig will then immediately move onto the Bamboo prospect in the same concession area. Bamboo is a large, Miocence channel and it is expected to take approximately 90 days to drill to top reservoir.

Commenting on the news, Tom Cross, Dana’s Chief Executive said:
“Dana is hugely encouraged to have found two new gas fields with its first two wells in this prolific region.

The Papyrus discovery reinforces the attractiveness of other prospects already identified within the West El Burullus concession, including larger targets at the deeper Miocene and Oligocene levels.

We are now focused on drilling the deeper and much larger Bamboo structure over the coming weeks."

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