Dana Petroleum has signed an agreement to acquire a 50% interest in the El Manzala Offshore Area Concession in the Mediterranean Sea, offshore Egypt.

The El Manzala Offshore Area Concession is a large PSC area, covering some 630km², situated in the offshore Nile Delta area of Egypt.

Dana said it will fund the cost of the next exploration well up to an agreed cap in order to earn the 50% interest.

Dana has already made two discoveries across the Nile Delta with Gaz de France at WEB-1 and Papyrus.

This deal continues Dana’s programme to grow its business in Egypt, particularly offshore Nile Delta, which provides upside opportunities for near-term drilling and development, Dana said.