Dana Gas drilled the South Abou El-Naga 2 development well, in the West Manzala Concession, onshore the Nile Delta.

The cost of drilling this oil-producing well averaged $2.5 million. The well was drilled to a total depth of 8000 feet.

The Middle East’s first and largest regional private sector Natural gas Company aims at increasing its production rates to 67 thousand barrels a day by mid 2012.

On May 3rd, 2011, Dana Gas announced its latest discovery at the South Abu El Naga-2 well, drilled as an appraisal of the previously announced South Abu El Naga Field in the West El Manzala Concession, which encountered 16.

6 meters of net pay in the Abu Madi formation.

In addition, the well encountered 4.8 meters of net pay in a good quality sandstone reservoir of the El Wastani formation, representing a new pool discovery. On test, the well produced 14.1 million standard cubic feet per day (MMscfpd) of gas with 718 barrels of condensate from the Abu Madi Formation, and 5.9 MMscfpd of dry gas from the El Wastani Formation.

“As our first discovery for 2011, the South Abu El Naga-2 well highlights our ongoing success in Egypt. Besides being a successful appraisal of the South Abu El Naga Field, it is the twenty-second new pool discovery as a result of the outstanding dedication of our exploration and drilling team in implementing the aggressive campaign launched in 2007. We will actively continue this exploration program throughout 2011,” said Ahmed Al Arbeed, Dana Gas CEO in a statement.