Dana Gas spuds high-potential exploration well in Eastern Mediterranean in Egypt concession area

The Merak-1 deepwater exploration well commenced drilling operations on 20 May 2019 and is expected to take approximately 70 days

  

Highlights

  • In case of success the Merak prospect may contain up to 4 trillion cubic feet (TCF) of prospective natural gas resources.
  • The well is located in the North El Arish offshore Concession Area (Block 6), part of the highly productive Eastern Mediterranean Basin.
  • Merak is one of 3 world-class exploration prospects in Block 6.
  • The 6th generation drillship, “Tungsten Explorer” from ADVantage Drilling Services SAE has been contracted to drill the well. 

Sharjah, UAE:Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, today announced it has commenced drilling operations on 20 May at its Merak-1 well, offshore Egypt. The location is in 755 meters of water in the North El Arish concession, also known as Block 6. This block is in the Eastern Mediterranean Basin where other world-class giant natural gas discoveries have been made in recent years.

The Merak-1 well will be drilled with the 6th generation dynamically positioned drillship “Tungsten Explorer”, on hire from ADVantage Drilling Services SAE – a JV between ADES International and Vantage Driller II Co (a subsidiary of Vantage Drilling). The well is planned to take approximately 70 days to drill.

Prospective resources to be added from this well in the case of exploration success could reach 4 trillion cubic feet (Tcf) of natural gas. The discovery of a world-class resource of this size could easily support an offshore field development. If Merak-1 is successful, additional exploration and appraisal drilling will follow.

Dana Gas purchased the Centurion assets onshore the Nile Delta in Egypt in 2007. Since then, 48 exploration wells have been drilled with a 67% success rate resulting in 25 new pool discoveries. Proved plus Probable reserves were increased by over 120% and production by 50%. Significant exploration potential remains in deep, Early Miocene prospects in the existing development leases and in El Mataraya Onshore which is a joint venture block operated by BP, where an exploration well is planned to be drilled later this year. Dana Gas production from Egypt is currently over 34,000 boepd.

Dr Patrick Allman-Ward, CEO of Dana Gas, commented:

“We have commenced an exciting exploration program in our Egypt Block 6 Concession Area. Until now, all of our Egyptian operations have been onshore the Nile Delta. Whilst we continue to optimize production from our 14 existing fields and explore new prospects in the Nile Delta region, the potential addition of new world class gas resources offshore presents an opportunity for significant growth in our Egypt business that would be transformative for Dana Gas.”

About Dana Gas

Dana Gas is the Middle East's first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 63,050 boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit:  www.danagas.com

Communication & Investor Relations Contact
Mohammed Mubaideen, Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com 

© Press Release 2019

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