Dana Gas new discovery in Egypt

Dana Gas PJSC has announced its latest gas discovery in the Nile Delta, Egypt. The 'South Abu El Naga-2' well, drilled as an appraisal of the previously announced South Abu El Naga Field in the West El Manzala Concession encountered 16.6 meters of net pay in the Abu Madi formation, thus extending the field.

The discovery comes after the announcement of the previous South Abu El Naga-1ST discovery in September 2010, where the calculated reserves estimate is in the range of 50 to 90 billion standard cubic feet (Bcf) of gas, with associated condensate reserves between 1 and 2 million barrels.

A preliminary estimate of the discovered reserves in the new pool (El Wastani formation) is in excess of 60bcf of gas, with a possible upside still under evaluation.

Dana Gas is preparing a separate development plan for this new pool, which will include several appraisal and development wells. The South Abu El Naga-2 dry gas discovery is expected to be tied in to the Company's nearby South El Manzala gas processing plant before the end of 2011. Spare capacity is available in the plant.

Dr Hany Elsharkawi, Dana Gas Egypt President, commented, "The well is an excellent start for 2011. We still have a sizeable portfolio of drillable prospects and our exploration activity will continue throughout the year, as will our development activities.

"The discovery at the South Abu El Naga-2 well represents a new era of shallow wells that can be drilled at low cost with fast production to meet Egypt's gas production demands."

Ahmed Al Arbeed, Dana Gas CEO, said, "As our first discovery for 2011, the South Abu El Naga-2 well highlights our ongoing success in Egypt. Besides being a successful appraisal of the South Abu El Naga Field, it is the twenty-second new pool discovery as a result of the outstanding dedication of our exploration and drilling team in implementing the aggressive campaign launched in 2007. We will actively continue this exploration program throughout 2011."

Dana Gas is currently the 6th biggest gas producer in Egypt, a country whose gas reserves has doubled in the past 5 years to over 70 trillion cubic feet, and now produces more gas than oil and is already among the world's top ten exporters of LNG.

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