Emirati energy firm Dana Gas announced a significant gas discovery at Balsam-3, and that it has proved up additional 2P reserves with the Balsam-2 development well, both located in the Balsam Developmental Lease in Egypt's Nile Delta region. Preliminary estimates have put the additional 2P reserves at 165 billion cubic feet (Bcf) of gas, equivalent to 28 million barrels of oil equivalent, the firm said in a statement on November 15, 2015. The firm also said the first production from the Balsam Field to come on stream before the end of the year. Dana Gas has continued to drive further cost reductions during the third quarter. Since the beginning of the year the Company has cut US$5 million in costs by lowering G&A as well as reducing the workforce in quarter four 2015. Furthermore, because of early conversions on the convertible sukuk in early 2014, the Company has saved approximately US $4 million in interest payment during 2015. This has resulted in a company better positioned to operate in a low oil price environment going forward. "In the Nile Delta, we are pleased to announce the outcome of two successful wells in the Balsam Development Lease. Both Balsam 2 and 3 wells had excellent results and initial estimates indicate a 2P reserve addition of about 165 Bcf, with a high condensate yield. The wells open up further development potential that will be pursued in 2016." Patrick Allman-Ward, CEO Dana Gas, said. "We expect first production from the Balsam Field to come on stream before the end of the year. This is also the first gas resulting from our new investment program linked to the Gas Production Enhancement Agreement signed with the Egyptian government in August 2014. It represents a notable milestone as we start to add incremental production, generate additional revenues and reduce our outstanding receivables position." "The market remains extremely tough on producers but Dana Gas continues to be resilient and our focus on managing our cost base is yielding positive results. It has helped us to partially offset the low oil price environment and reduction in production to post a nine-month net profit of US$ 10 million."
