Dana Gas exceeds 2010 production targets in Egypt
Posted: 4 January 2010
Dana Gas PJSC reported that its annual production rate for 2010 from its Nile Delta
Concessions in Egypt is an estimated 42,000 barrels of oil equivalent per day (boepd),
an increase of 20% on 2009, with production commencing from seven new fields.
"Our ongoing excellent exploration
performance, with sixteen discoveries in the Nile Delta over the past three years,
combined with our year on year production increase of 20% reinforces our view of the
remaining potential of this first class acreage and thus confirms to us that retention of
our 100% interest will deliver the maximum value to our shareholders," said Mr Ahmed Al Arbeed, Dana Gas CEO.
continues to increase, with current production in the Nile Delta at 246 mmscfpd of gas
plus 7350 barrels per day of condensate and LPG, a total of 48,000 barrels of oil
equivalent per day. We are targeting similar annual increases in production during 2011
"Our team in Upper Egypt continues to work hard to enhance production from the Al
Baraka Field with further development drilling planned in 2011, alongside our exploration
programme to test the vast potential of the Komombo Concession."
The company has continued its exploration success during 2010 with seven
new field discoveries in the Nile Delta from eleven exploration wells drilled which has led
to a 20% increase in reserves, after allowing for 2010 production, compared to 31
Considering these continued operational successes particularly the discovery of the
South Abu El Naga and Salma Delta North fields in September, the Board of Dana Gas
has decided to retain its 100% interest in its Nile Delta Concessions and to continue
operating them to maximize ultimate benefit for its shareholders rather than proceeding
with the proposed farmout.
Dana Gas has now embarked on a new phase of production growth, upgrading existing
plants and building new capacity to bring these new fields online as quickly as possible.
The planned new gas processing plant to the East of the Nile River will be designed to
process 120 million standard cubic feet per day (mmscfpd), a considerable increase
compared to the original planned design of 50 mmscfpd, which will contribute significant
value as the South Abu El Naga and Salma North discoveries have high liquid content.
This, along with an ongoing increase in capacity at its El Wastani Plant, will bring Dana
Gas’ total production to some 400 mmscfpd (67,000 boepd excluding liquids) in mid
The company is also continuing its aggressive exploration campaign with a 14 well
programme for 2011; the drilling of first well, Sanabel-1, has commenced targeting the
deeper high potential Sidi Salim formation.
On the Komombo Concession in Upper Egypt, Dana Gas along with 50% joint operator
Sea Dragon Energy Inc, has produced oil during the year at an average gross
production rate of 620 barrels of oil per day (bopd) and is currently producing at
approximately 800 bopd. Work is ongoing to increase the productivity of the Abu Ballas
formation by fracturing with two fractured wells due to be placed on production during
During 2010, 480 kilometres of 2D seismic was acquired and processed,
and the first exploration well, Memphis-1, commenced drilling in December.