Gas discoveries in Egypt for Dana

Sharjah-based Dana Gas said it had made two gas finds in Egypt with reserves totalling an estimated 76 billion cubic feet.

A company statement said the finds were at the Sharabas-1 and Sama-1 wells in the Nile Delta region but did not give a specific date for the start of commercial production from the wells.

"The Sharabas-1 and Sama-1 discoveries will boost Dana Gas' production and profitability, and will take us closer to achieving our target production of 40,000 barrels of oil equivalent per day by the end of the year; a target that we are already well on the way to achieve," Chief Executive Ahmed Al Arbeed said in the statement.

The Sharabas-1 discovery, which has estimated reserves of about 28 billion cubic feet gas plus the associated condensate, tested at seven million standard cubic feet per day of gas with 198 barrels per day of condensate, it said.

The Sama-1 discovery tested at 13 million cubic feet per day of dry gas, it said. The estimated reserves for this find are about 48 billion cubic feet of gas and it has the potential to produce about 20 million cubic feet per day, it said.

"In addition to the Sharabas-1 and Sama-1 exploration discoveries, Dana Gas has successfully drilled and tested an important appraisal location at Salma Delta-2 in the West El Qantara concession, and good productivity has also been confirmed at the previously announced Tulip-1 discovery, also in the West El Qantara concession," said Hany Elsharkawi, President of Dana Gas Egypt.

Dana Gas, which relies on Egypt for the bulk of its income, said last year it planned to invest $500 million (Dh1.8 billion) in Egypt and Iraq's Kurdish region in 2009 to boost natural gas output.

Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here.

Follow Emirates 24|7 on Google News.