SHARJAH: Dana Gas, the Middle East s first and largest regional private-sector natural gas company, announced the discovery of a new gas well drilled in its Egyptian concessions. According to a company statement, the Dabayaa-2 delineation well was drilled by Centurion Petroleum Corporation, the upstream division of Dana Gas in Egypt, on the eastern side of the West Manzala concession, in order to appraise the Dabayaa-1 discovery well in the Lower Abu Madi Sandstone formation. We are very pleased with the results we obtained from Dabayaa-2, which confirm our high expectations for the potential of the Abu Madi formation in this block, said Hany El-Sherkawi, Dana Gas Egypt country director. The Lower Abu Madi formation was tested previously, but this is the first time that we have been able to confirm the productivity in the Upper Abu Madi formation, he continued. The gathering pipe line from Dabayaa-2 is under construction, and the well should be flowing on-stream before the end of December. The well was drilled to a total depth of approximately 3,000 meters and encountered gas bearing zones in both the Upper and Lower Abu Madi formations. The Lower Abu Madi formation was tested and found to flow at a gas rate of over 10 million cubic feet per day, and 240 barrels per day of condensate, and will provide a further boost to Dana Gas production and revenues from Egypt. Dana Gas is the sixth highest natural gas producer in Egypt from among the 64 companies operating in the country. A report this week by the Middle East Economic Survey (MEES) confirmed that Dana Gas was the only private company from the region to make new Middle East oil and gas discoveries in 2007. Important discoveries announced from wells drilled earlier this year include El-Wastani EWW-2, West Manzala-1 and Komombo -1, which was renamed Al-Baraka by the Egyptian Petroleum Minister Sameh Fahmy. Last month Prime Minister Ahmed Nazif received the Executive Chairman of Dana Gas Hamid Dhiya Jafar, who updated the Prime Minister on the company s ongoing operations and investments in Egypt, including the first commercial oil discovery ever made in Southern Egypt in early September 2007. Jafar also presented the Dana Gas City proprietary concept of developing local gas-based industries, which encompass an integrated community optimizing natural gas utilization. The Dana Gas City concept is in line with Egypt s current policy of maximizing economic and social benefits of its natural gas resources to the country. Egypt s natural gas reserves have doubled in the last five years to over 70 trillion cubic feet, read the statement. Dana Gas is currently also leading a consortium to build and operate the Gulf of Suez Gas LPG Plant, in partnership with the Egyptian Natural Gas Holding Company (EGAS) and the Arab Petroleum Investment Corporation (APICORP), with construction on schedule for the first quarter of 2008. UAE-based Dana Gas has offices in Saudi Arabia, Egypt, the UK and Canada, with plans to expand further in the Middle East. The company has assets and projects in gas exploration and production, processing, transportation and marketing in several countries
