Dana Gas has started its first production from the recent gas & condensate Al Basant discovery in the West Manzala Concession in the Nile Delta region of Egypton March 31st, 2009.

Al Basant-1 well was discovered in October 2008 and tested at a rate of 23.5 million standard cubic feet per day mmscfd gas and 1027 barrels per day condensate. The Al Basant-2 appraisal well was subsequently drilled, completed, and tested in December 2008 and additional gas was discovered in a new zone which tested at 10.5 mmscfd gas and 150 barrels per day condensate.

Al Basant field gas reserves are currently estimated to exceed 123 billion cubic feet BCF. A third well, in the field is planned to reach an estimated target field production of 45 mmscfd before year end. The Al Basant discovery was developed on a fast track project with two pipelines; 6” and 12”, 17.5 kms each, to transport Al Basant production to El Wastani (EW) integrated gas plant which has a design capacity of 160 mmscfd and 7500 bpd of condensate and LPG.

The El Wastani plant is currently operating at 153 mmscfd gas and 5400 bpd of condensate and LPG. The fast track project was completed in a record time. The new gas production from Al Basant will allow testing the plant beyond its full design capacity and identifying the components that require modification, or upgrading, to maximize throughput while targeting production levels of 170 mmscfd.

The El Wastani East-2 side track well (EWE-2st) is Dana Gas Egypt’s first highly deviated/horizontal well in Egypt. The well was drilled and completed in March 2009 in the East El Wastani development lease in the Nile Delta region. Gas production from EWE-2st started on March 30th, 2009, at an initial rate of 4.5 mmscfd gas, which will increase after the well has been cleaned up. EWE-2st production is being processed in the company’s El Wastani plant facilities.

Dana Gas’ Upstream Executive Director, Mr. Ahmed Al-Arbeed, said that the company is very pleased with this latest success and will continue its aggressive drilling plan in Egypt in the year 2009. “The experience gained in the successful horizontal drilling of EWE-2st will have a positive impact on the company’s plans to further develop its existing fields where horizontal drilling is expected to enhance productivity. The company has now started production from the first gas discovery in 2008 and will continue its efforts to develop and produce the remaining three other discoveries; Salma, Azhar, and Sondos (Haggag) in 2009/2010”.

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