By: AGBI

Abu Dhabi-listed Dana Gas has confirmed a “significant” gas discovery onshore Egypt’s Nile Delta, as the North African nation struggles to meet local demand.

Initial results from the North El-Basant 1 exploratory well indicate estimated reserves of 15 to 25 billion cubic feet (bcf) of gas, with production expected to exceed 8 million cubic feet per day (mmscfd) once the well is connected to the national network, Dana Gas said in a statement.

The company has drilled the fourth of 11 development and exploration wells under its $100 million investment programme, which supports Egypt’s gas production and adds to the country’s reserves.

The result “builds on the momentum of our earlier wells and supports our efforts to increase domestic gas supply and reserves”, Dana Gas CEO Richard Hall said.

“By increasing local gas production, the programme will help reduce Egypt’s reliance on imported LNG and fuel oil and is expected to generate more than $1 billion in savings for the national economy over time,” he said.

Earlier this year Dana Gas completed the drilling of three wells, adding 10 mmscfd of production.

The drilling programme is expected to add nearly 80 bcf in recoverable gas reserves.

Dana Gas expects to spud the fifth well — the Daffodil exploration well — in the first week of January.

Egypt’s proven gas deposits are estimated at 2.2 trillion cubic metres, the sixth-largest in the Arab world after those of Qatar, Saudi Arabia, the UAE, Algeria and Iraq, according to the Kuwaiti-based Arab Energy Organization.

In November the company signed a preliminary agreement with the Syrian Petroleum Company to redevelop and expand natural gas fields across central Syria.

Dana Gas shares were up 1.3 percent at AED0.836 on Thursday morning. The stock has risen 11 percent this year to date.

Crescent Petroleum Company owns 20 percent of Dana Gas.