Dana Gas to drill 19 new wells in Egypt

The program involves the drilling of 19 new wells, including 15 exploration prospects and four development wells. The total budgeted upstream capital expenditures for Egypt in 2008 are more than $170m, and five drilling rigs are presently being acquired to implement the programme.

The wells are located at the Komombo concession in Upper Egypt and the two Nile Delta concessions. There will be one exploration and one development in the Komombo concession, three development and 14 exploration wells in the Nile Delta, five of which are targeting the Sidi Salem Formation. The wells in the Sidi Salem Formation are technically challenging, targeting depths around 4,000 meters.

Dr. Hany Elsharkawi, Dana Gas Country Director in Egypt, said:

"This is a defining year for the upstream operation in Egypt, and this exploration and development program could potentially double the size of our reserves, and would provide a further boost to Dana Gas production and revenues in Egypt. The gas sector in Egypt is expanding rapidly, and we are confident that this program will grow our already strong position in the country."

Dana Gas, the 6th highest natural gas producer in Egypt from among the 64 companies operating in the country, announced historic discoveries in Southern Egypt from its El Baraka - 1 exploration well in September 2007, followed by a further major discovery in the Dabayaa delineation well in December 2007.

Dana Gas has already taken the initial steps to build the Gulf of Suez LPG Plant in partnership with the Egyptian Natural Gas Holding Company (EGAS) and the Arab Petroleum Investment Corporation (APICORP). The plant will produce approximately 120,000 metric tonnes per year of propane and butane, with the products to be exported to international markets and thus providing significant value to Egypt's gas resources.