Dana Gas Egypt, a wholly owned subsidiary of Dana Gas, has reached a gas production enhancement agreement (GPEA) with Egyptian Natural Gas Holding Co. (Egas) and Egyptian General Petroleum Co. (EGPC), forming the basis for a development program to eventually increase production from 40,000 boe/d at Dana’s development leases in the Nile Delta.
The agreement calls for Dana Gas Egypt to undertake a long-term staged work program over a 7-year period, with project work expected to start in the next few months and first export sales of incremental volumes of condensate following the completion of tie-in activities.
As part of its work program, Dana Gas Egypt plans to drill 37 wells and carry out an equivalent number of workovers of existing wells. Estimated incremental production during the period will be 270 bcf of natural gas, 8-9 million bbl of condensate, and 450,000 tons of LPG. Peak production is expected to occur in 2017 with incremental production of 160 MMscfd of gas and 5,600 b/d of condensate.
The company recently surpassed 100 million boe in production from Egypt, where it started operations in 2007.
Separately, Dana Gas has been awarded the Blocks 1 and 3 concession areas in the onshore Nile Delta. Block 1 represents an extension of the company’s existing conventional gas business. Dana will participate in the Block 3 Concession Area on a 50% basis with BP PLC as partner and operator.
Dana says successful exploration of the deep Oligocene objective will allow BP to participate in the deep potential in adjacent Dana Gas development leases. The Oligocene prospect that will be targeted in Block 3 has multi-tcf exploration potential in a proven hydrocarbon play with a high success rate to date, the company said.
