Dana Gas, the Middle East's regional private sector natural gas company, has announced the results of its Begonia-2 appraisal well and the start of recompletion works at the Balsam-3 well in Egypt's onshore Nile Delta, marking the first stage of its $100 million investment programme.

 

‘Begonia-2’ is the first appraisal well within the Begonia development area and the first of eleven appraisal and exploration wells planned under the programme.

 

Drilling and logging results indicate that the well contains 9 billion cubic feet (bcf) of gas as an initial estimate, which is subject to increase.

 

Begonia-2 will produce an additional 5 million cubic feet per day (mmscfd).

 

The well is located in the "New El-Manzala" concession and is operated by the Joint Venture, El-Wastani Patrolmen Company (Wasco).

 

The $100 million investment programme is expected to significantly increase Dana Gas’s long-term production in Egypt and add approximately 80 bcf in recoverable gas reserves over the course of the two-year plan.

 

Drilling is being carried out using the EDC-54 rig, and the next well is expected to spud in August.

 

In parallel, the Company has also begun to re-complete several wells in other geological layers, which are expected to add more reserves and enhance production.

 

Work is currently underway on the Balsam-3 well, where Dana Gas has redeployed the EGYPTCO rig from its plug-and-abandonment (P&A) mode.

 

Estimated reserves from the recompleted well are 4 bcf, with an anticipated additional production of 3 million cubic feet of gas per day.

 

The recompletion of Balsam-3 is expected to reduce the risk associated with drilling exploration wells in the area and further enhance output.

 

Richard Hall, CEO, Dana Gas, said: “The successful drilling of the appraisal well 'Begonia-2' and the recompletion of the ‘Balsam-3’ well marks a significant strategic milestone. It signals the first steps in our ambitious US$ 100 million investment program in Egypt, which includes drilling 11 new wells. We have been developing and producing gas in Egypt for over a decade, and the signing of the concession area consolidation agreement with the Egyptian Natural Gas Holding Company (EGAS) late last year has allowed us to acquire additional areas under improved financial terms, enabling us to launch this new phase.

 

Hall added:“The success of drilling this well opens vast prospects for gas production in the 'Begonia' area and presents promising future opportunities for expansion and growth. It will also extend the operational life of our assets in Egypt. We are fully committed to making every effort to ensure the success of the program and its efficient and timely execution. Dana Gas reaffirms its strong commitment to reinvesting the payments it receives from the Egyptian government into executing this ambitious program and supporting future development projects in the country. Regular and timely payments from our partners are crucial to sustaining these investments.” -OGN / TradeArabia News Service