Dana has completed the drilling of the TAJ-1 exploration well, onshore Morocco. The well is located in the Bouanane Petroleum Permits which are positioned to the south of the Atlas Mountains and was drilled to a measured depth of 3,274m below ground level.
This wildcat exploration well came in broadly in line with prognosis, and Dana was encouraged that indications of gas were obtained during drilling of the primary Ordovician sandstone target. However, cuttings information and wireline log data from the main Ordovician sandstone indicated poor reservoir quality with low porosity. Therefore, the preliminary interpretation of the well data is that the gas discovered at this location is not considered to be in commercial quantities. The well has been plugged back to be permanently safe, however the wellhead has been left in place to allow re-entry of the well if this is considered appropriate at a later stage. Dana will now analyse all the relevant data from the well prior to making a decision on future activity in the Bouanane Petroleum Permits.
Interests in the Bouanane Petroleum Permits are held by Dana Petroleum (E&P) Limited 50% (Operator), ONHYM (25%), Eastern Petroleum (Cyprus) Limited (12.5%) and Tethys Oil AB (12.5%).
In Egypt, Dana is pleased to report that the Azhar-7x exploration well in the onshore East Beni Suef concession has demonstrated the extension of the Azhar field some 5 km south west from the Azhar-1X well. The well is currently undergoing flow testing prior to being tied into existing facilities. The Yussif-2 well also in the East Beni Suef concession, which was planned as a water injector well, has discovered additional oil and will be tied in as an oil producer. Dana, along with the operator Apache, is currently evaluating the full scale development of these fields with the potential for water injection for enhanced oil recovery. Governmental approval has also been received for the Sobha development plan and this field is expected to be brought onstream later this month.
Drilling is continuing on the September prospect in the North Ghara concession, offshore Gulf of Suez, Egypt in which Dana holds a 25% interest. The well, which is being operated by BP, is at a current depth of approximately 8,200 feet and the reservoir target is expected at around 14,000 feet with results due in early September.
Dana is pleased to provide an update on its exploration drilling plans for the coming months.
Dana will drill two exploration wells in the West El Burullus concession, offshore Nile Delta, Egypt where the Company holds a 50% interest. The first prospect to be drilled is Papyrus, targeting a similar prospect to the West El Burullus-1X discovery made in 2008, and is due to spud in October. This well will be followed immediately by the Bamboo prospect which is targeting a deeper, very large channel complex. The wells will be drilled using the Atwood Aurora jack-up rig which is currently drilling for RWE-Dea in the Nile Delta.
In Norway, the authorities have granted approval for the forthcoming Jetta and Trolla wells. The Jetta well 25/8-17, in which Dana has a 30% interest, will be drilled using the Bredford Dolphin and is expected to spud in mid August. The well is located 7 km south east of the Jotun oil field, where Dana holds a 45% interest. The Trolla well, 6609/10-2, in mid Norway will be drilled using the Songa Delta rig and is expected to spud in early September. Dana holds a 30% interest in the licence which is located 45 km to the east of the Norne field.
Drilling on the Tornado prospect in the West of Shetland area of the UK Continental Shelf is due to commence by the end of August. Tornado is a large, well defined structural prospect located approximately 20 km north of the prolific Foinaven and Schiehallion oil fields. The prospect, in which Dana holds a 30% interest, will be drilled using the Stena Carron drillship which is currently undertaking appraisal drilling on the Rosebank field.
Dana is planning to announce its interim results, for the six month period ending 30 June 2009, on 28 August 2009.