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Dana Gas New Gas Discovery in Egypt

Source: www.oilegypt.com 5/23/2009, Location: Africa

Dana Gas, the Middle East's first and largest regional private sector natural gas company, has announced another gas discovery in one of the company’s concessions in the Egyptian Nile Delta. The Tulip-1 well is set to add up to 30 billion cubic feet of gas to the company’s reserves in Egypt.

This comes soon after the announcement of three previous gas discoveries in the Nile Delta area: two dry gas discoveries at the firm’s Sondos-1 and 2 wells, and one gas/condensate discovery at the Azhar-1 well. This is the result of Dana Gas’ aggressive drilling campaign in Egypt, which began in 2008 and continues to add new gas reserves in 2009.

The Tulip-1 well is located in the West El Qantara Concession, approximately 15 km from the Company’s South El Manzala gas processing facilities and 7 km from the recent discovery Salma Delta-1. The well was spudded on 25 April 2009 and reached a total depth of approximately 2200 meters within the Messinian Abu Madi formation.

The well encountered 11 meters of net pay in a good quality sandstone reservoir of the Abu Madi formation. The production test yielded production of 11.4 million standard cubic feet per day of gas and 318 barrels of condensate per day.

Commenting on this new discovery, Dana Gas’ CEO Mr. Ahmed Al-Arbeed said: “The discovery at the Tulip-1 well represents our fourth discovery in our 2009 drilling campaign. We are delighted that the extensive prospect generation effort, followed by a very effective drilling campaign, continues to produce positive results into 2009 following the outstanding results of 2008, which will further boost the company’s production”.

Dana Gas Egypt President, Dr. Hany Elsharkawi explained that the development plan for this discovery is currently being prepared. “The plan includes the drilling of a number of appraisal and development wells that will support the final assessment of the field and the construction of a new gas and condensate plant to accommodate the production coming from the nearby Salma Delta discovery as well”.

Dana Gas is the sixth highest natural gas producer in Egypt. The company ended 2008 with a daily production rate from its Egyptian operations of approximately 31,650 barrels of oil equivalent (boe) that has recently increased to about 35,000 boe due to the tie-in of El Basant field. A further increase is expected in June after the Sondos field tie-in.

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Related Articles: Artificial Lift  Cementing, Stimulation  Directional Drilling  Drilling  Drilling Engineering & Equipment Systems  Enhanced Oil Recovery  General  Logging, Perforating, Testing  Offshore Drilling  Reservoir/Completion Consultants  Workover & Well Services  Workover Rigs/Services 


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