Dana Gas Announces New Oil Discovery in Egypt

Dana Gas, the Middle East's first and largest regional private-sector natural gas company, has announced a discovery from a new oil zone in its Egyptian concessions, marking the first discovery in the company’s US$ 170 million drilling campaign for 2008.

Drilling of the “Al Baraka-2” well in the Komombo concession, where Dana Gas made its first commercial oil discovery last year, has been completed. The new well confirmed the first discovery, Al Baraka-1, in the Abu Ballas formation, and proved a new discovery in the underlying Six Hills formation.

Dr Hany Elsharkawi, Dana Gas Egypt Country Director, provided further details and said, “In addition to this discovery, we have commenced drilling of the West Baraka-1 exploration well in a new prospect in the Komombo concession, with completion expected before the end of next month, and are in advanced stages of drilling deeper gas exploration wells in our Nile Delta acreage, with results expected soon.”

Dana Gas is the sixth largest natural gas producer in Egypt today. A report 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. The company announced earlier this year that it would embark on a US$ 170 million drilling programme covering 15 exploration wells and four development wells in 2008.