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Dana Gas hits new oil finds in Egyptby Arabian Oil & Gas Staff on Dec 31, 2012
Dana Gas PJSC has discovered two new onshore gas deposits in the Nile Delta Basin of Egypt. Initial estimates indicate that together the two discoveries, known as Alyam-1 and Balsam-1, should increase the company's commercial reserves by between 17 (proved) and 95 (proved & probable) million barrels of oil equivalent (MMBOE).
Appraisal drilling will be conducted on both discoveries which are located on the West El Manzala Concession, operated by Dana Gas. The company has already filed a declaration of commerciality and development plans for the two discoveries, which will be tied in to the nearby pipelines also owned by Dana Gas.
Mr. Rashid Al Jarwan, executive director and acting CEO of Dana Gas said "Our latest two discoveries confirm the Nile Delta as a prolific hydrocarbon-bearing basin. Dana Gas remains fully-committed to the long term development of Egypt's gas industry and its essential role in fuelling the nation's economic growth."
The Balsam-1 well encountered 51 meters of net pay in a good-quality sandstone reservoir of the Qawasim formation at high pressure, indicating high deliverability from the field.
The two new fields have the highest liquid yield of any gas field discovered in the area so far and could increase Dana Gas’ commercial reserves by up to 55%. The company has now made four discoveries in Egypt.
Dr. Patrick Allman-Ward, Dana Gas Egypt general manager commented, “These two new wells mark an excellent results to 2012 drilling in the Nile Delta. We still have to conduct appraisal drilling to confirm the full extent of the new fields, but as they are near existing infrastructure, we plan to accelerate their development and maintain the long-term growth of our production in Egypt.”
The estimated reserves for Balsam-1 are between 76 to 436 billion cubic feet (BCF) of gas with between 2.5 and 9.4 million barrels of condensate (MMBO). The estimated reserves for the Alyam-1 discovery are between 8 and 66 BCF and between 0.2 and 1.3 MMBO. The higher range of the estimates is within the vertical closure defined by fluid contacts, and assumes continuity of the reservoir, which will depend on the results of planned additional appraisal drilling.
The Balsam-1 and Alyam-1 discoveries in West El Manzala are adjacent to the El Basant Field and its associated pipeline network also operated by Dana Gas.
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