Continental Focus, International Reach

Dana G Spuds East Med Well

Sunday, May 26, 2019

Dana Gas spud the Merak-1 well offshore Egypt on its North El Arish concession on May 20. This block is in the Eastern Mediterranean Basin where giant natural gas discoveries, such as ENI’s Zohr gas discovery, have been made in recent years.

The Merak-1 well is being drilled using the Tungsten Explorer, on hire from Advantage Drilling Services. The well is estimated to take approximately 70 days to drill.

Prospective resources to be added from this well in the case of exploration success could reach 4 Tcf of natural gas. The discovery of a world-class resource of this size could easily support an offshore field development. If Merak-1 is successful, additional exploration and appraisal drilling will follow.

Dana Gas purchased the Centurion assets onshore the Nile Delta in Egypt in 2007. Since then, 48 exploration wells have been drilled with a 67% success rate resulting in 25 new pool discoveries. Proved plus Probable reserves were increased by over 120% and production by 50%. Significant exploration potential remains in deep, Early Miocene prospects in the existing development leases and in El Mataraya Onshore which is a joint venture block operated by BP, where an exploration well is planned to be drilled later this year.

Dana Gas’ production from Egypt is currently over 34,000 boepd.