Dana Gas Makes Second Discovery in Egypt

Dana Gas has announced a new gas discovery in the Nile Delta, Egypt. The discovery was at West Sama-1 in the West El Qantara Concession.

This new field discovery comes after the first successful drilling in the Komombo Concession earlier in the second quarter of the year. The new discovery is nearby to the Sama-1 and Sama-2 dry gas discoveries in the Abu Madi formation. The evaluated in-place resources for the West Sama-1 are between 4 to 6 Billion Cubic Feet (Bcf). The company is preparing a development plan for this discovery to be tied in to the nearby pipeline owned by Dana Gas. The West Sama-1 gas discovery will be tied in to the Company’s nearby South El Manzala gas processing plant within a week.

The West Sama-1 well is the first significant dry gas discovery in the Kafr El Sheikh Formation by Dana Gas in 2012 and the twenty third as a result of the aggressive exploration drilling campaign that started in 2007 and will continue throughout 2013.

This new field discovery comes after the announcement of commencement of Dana Gas’ joint-venture, the Egyptian Bahrain Gas Derivatives Company (EBGDCo) NGL extraction plant at Ras Shukheir in Egypt. EBGDCo’s first cargo shipment of propane was achieved on 1st October 2012 signalling scheduled plant production start-up on a commercial basis. When fully operational, the plant will extract 120,000 tonnes per annum of propane & butane from a gas stream of 150 MMscfd.