Dana Gas Starts Production from Egypt Fields

Dana Gas PJSC, the Middle East’s first and largest regional private sector natural gas company, has announced the West Sama-1 and Allium-1 fields in Egypt have commenced commercial production, less than 2 months after initial well testing was conducted.

These new fields are among the three discoveries made by Dana Gas in Egypt’s Nile Delta Basin during the Company’s 2012 multi-well drilling programme. Dana Gas plans to bring the other field, Balsam-1, into production in H2 2013. Gas production at West Sama-1 and Allium-1 has been routed through Dana Gas’ South El Manzala and El Wastani gas plant respectively.

Mr. Rashid Al Jarwan, Executive Director and Acting CEO of Dana Gas said: “We are pleased to announce the successful tie-in of these two discoveries. The wells increase our production by 20 million cubic feet per day, providing much needed additional production to the Egyptian market and maintaining vital supplies of gas for power generation.”

Dr. Patrick Allman-Ward, Dana Gas Egypt General Manager commented: “Dana Gas is well positioned to bring new discoveries on stream due to the onshore location of our assets where tie-ins to our existing pipelines and processing infrastructure can be made quickly, relatively inexpensively and ensures a high return on our new gas discoveries”.

Production from the two wells is expected to add 3,450 boepd (20 MMcf/d) to the Company’s 2012 Egypt year-end output rate of 32,000 boepd.

Dana Gas is continuing constructive discussions with the authorities on our remaining outstanding receivables, having received $163 million from the Government in 2012.

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LNG World News Staff, March 05, 2013; Image: Dana Gas