Oil & Gas

Egypt’s natural gas reserves are set to increase following a significant new discovery by UAE-based Dana Gas.The Abu Dhabi-listed based energy company is investing $100 million in drilling new wells across Egypt to support domestic gas production and address the country’s rising energy demand. The latest find, the Begonia-2 appraisal well, is located in the “New El-Manzala” concession and is operated by the El-Wastani Patrolmen Company Joint Venture. Preliminary results indicate that the well holds around 9 billion cubic feet (bcf) of gas, with daily production expected to increase by 5 million cubic feet.

This discovery is part of a broader two-year investment program by Dana Gas, which aims to add approximately 80 bcf of recoverable gas reserves in Egypt. Drilling is being conducted with the EDC-54 rig, and the next well in the sequence is scheduled to begin drilling in August. In addition to new wells, Dana Gas has begun re-completing several existing wells in different geological layers, which are also expected to contribute to the reserve base.

One of these ongoing operations includes the Balsam-3 well, which is estimated to hold 4 bcf in reserves and will add another 3 million cubic feet of gas per day to Egypt’s output. According to Dana Gas CEO Richard Hall, the company’s recent agreement with the Egyptian Natural Gas Holding Company to consolidate concession areas under improved financial terms has played a key role in expanding exploration and development opportunities.

Egypt’s proven natural gas reserves are estimated at around 2.2 trillion cubic metres, ranking sixth in the Arab world behind Qatar, Saudi Arabia, the UAE, Algeria, and Iraq. Dana Gas, which is listed on the Abu Dhabi Securities Exchange, saw its shares rise 0.5 percent to AED0.771 on Wednesday afternoon, with a 9 percent increase year to date. Crescent Petroleum Company currently holds a 20 percent stake in Dana Gas.