Dana Gas begins gas production on Allium-1 fields in Egypt

UAE-based natural gas company Dana Gas has commenced gas production on the West Sama-1 and Allium-1 fields in Egypt.

Dana Gas started production within two months of initial well testing.

The new fields were discovered in Egypt’s Nile Delta Basin, during the company’s 2012 multi-well drilling programme.

The company has plans to bring the other field, Balsam-1, into production in 2013.

Gas production from both the fields has been routed through the company’s South El Manzala and El Wastani gas plants.

Dana Gas executive director and acting CEO Rashid Al Jarwan said the wells have added 20 million cubic feet per day and provided much needed additional production to the Egyptian market.

Dana Gas Egypt general manager Dr. Patrick Allman-Ward said, "Dana Gas is well positioned to bring new discoveries on stream due to the onshore location of our assets where tie-ins to our existing pipelines and processing infrastructure can be made quickly, relatively inexpensively and ensures a high return on our new gas discoveries".

Both the wells are expected to add production of about 3,450 barrels of oil equivalent per day (20 million cubic feet per day) to the company’s 2012 Egypt year-end output rate of 32,000 barrels of oil equivalent per day.

Dana Gas is continuing discussions with the authorities in relation to the outstanding receivables, while it has received $163m from the Government in 2012.

The company plans to increase gas and condensate production for electric power generation and fuel supply in Egypt.

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Image: Dana Gas has commenced gas production on the West Sama-1 and Allium-1 fields in Egypt. Photo: Courtesy of Dana Gas.