By Joanne Bladd
Gulf's only listed natural gas company will continue exploration over 2011, says Egypt president
Dana Gas said on Tuesday it has made a new gas discovery in the Nile Delta, Egypt, its fifth gas find in the Arab state.
“A preliminary estimate of the discovered reserves in the new pool (El Wastani formation) is in excess of 60 Bcf of gas, with a possible upside still under evaluation,” the company said in a statement.
The Gulf's only listed natural gas company will prepare a separate development plan for the new poll, including several appraisal and development wells.
On test, the South Abu El Naga-2 well produced 14.1 million standard cubic feet per day of gas with 718 barrels of condensate from the Abu Madi Formation, the company said.
"The discovery… represents a new era of shallow wells that can be drilled at low cost with fast production to meet Egypt's gas production demands," Hany Elsharkawi, Dana Gas Egypt president said in the statement.
"We still have a sizeable portfolio of drillable prospects and our exploration activity will continue throughout the year, as will our development activities.”
Dana Gas, which plans to list its shares in London to expand its investor base, is Egypt’s sixth largest gas producer.
Its operations last year had average production rates of 42,300 barrels of oil equivalent per day (boepd), a 20 percent increase over the previous year.