Dana Gas has secured a 100% working interest in the North El Arish (Block 6) concession area, located offshore of the Nile Delta, Egypt.
The company won the exploration rights as part of a competitive bidding in the Egyptian Natural Gas Holding Company 2012 International Bid Round.
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Block 6 is situated offshore of the Nile Delta, in the eastern part of the Mediterranean Sea, in water depths of about 1,000 metres and covering an area of 2,980km².
The concession includes an eight-year exploration period, comprised of three phases, starting with an initial four-year exploration period and two additional two-year extension periods.
The company said it currently operates ten fields in the Nile Delta, which produce gas and associated liquids.
Dana Gas Egypt produced gas, LPG, condensate and crude oil at an average rate of more than 32,200 boepd in 2012, despite recent operational challenges.
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By GlobalDataDana Gas executive director and acting chief executive officer Rashid Al-Jarwan said the award of this concession proves the company’s confidence in Egypt for the long term.
"We continue to engage in a constructive dialogue with government entities and the Ministry of Petroleum to resolve the issue of the outstanding receivables," Al-Jarwan added.
Dana Gas Egypt general manager Dr. Patrick Allman-Ward said: "We believe Block 6 holds significant potential, lying as it does on strike with recent material discoveries in adjacent acreage in the Levantine Basin."
"The block provides an opportunity for Dana Gas to expand its operating activities in Egypt into both shallow and deep water operating environments," Allman-Ward added.
Dana Gas has also pre-qualified as a non-operator in Lebanon’s first Offshore Licensing Round, which will open on 2 May 2013.
Under the bidding process, consortiums that have a minimum of three partner companies will be awarded a block, while each non-operator will have a minimum ten percent working interest. In the bidding round, Lebanon will auction ten deep water exploration blocks, ranging from 1,500km² to 2,500km².
Image: Nasa satellite image of Nile Delta. Photo courtesy of Nasa.
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