Dana G and Sea Dragon Make New Gas Discovery

Dana Gas and its partner Sea Dragon Energy have made a new gas discovery in Egypt’s Nile Delta. The discovery was made with the drilling of the West Sama-1 well on the West El Qantara Concession and marks Dana’s second discovery in Egypt this year. 

The evaluated in-place resources for the West Sama-1 are between 4 to 6 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 also be tied in to the company’s nearby South El Manzala gas processing plant with 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 23rd  as a result of the aggressive exploration drilling campaign that started in 2007. The current drilling campaign will carry through 2013. 

Rashid Al Jarwan, Dana Gas executive director and acting CEO said, “Our team in Egypt continues to deliver tremendous results. We are delighted that this exploration well has been successful. It builds upon Dana Gas Egypt’s outstanding record of discoveries.”

Dr. Patrick Allman-Ward, Dana Gas Egypt GM commented, “The well is an excellent start to 2012 drilling in the Nile Delta. We still have a sizeable portfolio of drillable prospects and our exploration activity will continue throughout the year, as will our development activities.”

Dr. Patrick continued, “The discovery at the West Sama-1 well represents a successful Dana Gas strategy of drilling shallow gas discoveries that can quickly help Egypt meet its growing demand for gas. We are delighted that our prospect generation efforts followed by an effective drilling program are continuing to produce positive results, which will boost even further the company’s production starting from this year.”

This new field discovery comes after the commencement of Dana Gas’ JV, 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 October 1 signaling scheduled plant production start-up on a commercial basis. When fully operational, the plant will extract 120,000 tons per annum of propane and butane from a gas stream of 150 Mmcf/d.