Production Starts from Two New Wells Offshore Egypt

Dana Petroleum plc yesterday announced it had completed two successful exploration wells in North Zeit Bay: East Matr-1X and North Matr-1X.

East Matr-1X, which spudded on 25 February, was drilled with the Sino Tharwa Tanmia 1 rig, reaching a total depth (TD) of 5,800 feet on 5 March. On 27 March, the upper interval of Rahmi sand in the Kareem formation tested oil and gas, with a maximum stabilised flow rate of 6,153 boepd and 6.29 mmscfd, through a 96/64″ choke.

Zeitco has now tied the well into the Lorcan production facility in North Zeit Bay and first oil from East Matr-1X was recorded on 9 May. The well will be constrained to produce around 1,200 bbls per day.

Following the success of East Matr-1X, Dana then drilled an adjacent fault block with the North Matr-1X exploration well, which spudded on 3 April and reached TD on 25 April at 7,040 feet measured depth in the Kareem formation.

The well encountered a 22 foot sand in the Kareem formation, which tested oil and gas with a maximum stabilised rate of 3,630 bbls per day and 4.35 mmscfd, constrained by surface testing facilities. The well has also been tied in to Lorcan production facility and started production on 13 May.

Dana’s Managing Director in Egypt, Nick Dancer, said:

“Not only are we very pleased to have drilled two successful exploration wells in quick succession, with excellent reservoir characteristics, we are also pleased with Zeitco’s commitment to rapid tie back and first oil for these wells. Dana plans to invest US$169 million in Zeitco this year to continue our successful partnership with Egyptian General Petroleum Company.”

Zeitco is an Egyptian joint venture company formed to operate the North Zeit Bay concession, on behalf of the equal shareholders, EGPC and Dana Petroleum. Dana Petroleum has a 100% working interest in the North Zeit Bay concession.

Source:Dana Petroleum, May 16, 2012