UAE-based energy firm Dana Gas stated that it expects to start drilling 11 new wells in Egypt this year, and estimates that these wells will add up to 80 billion cubic feet of reserves and production, Mohammed Mubaideen, Head of Investor Relations in the company, told Asharq Business.

Mubaideen stated that the company has allocated investments estimated at $100 million to drill these wells, indicating that the company currently has four concessions in Egypt and is seeking to include them in one concession within an agreement awaiting approval by the House of Representatives.

Dana Gas has agreed with the Egyptian Natural Gas Holding Company (EGAS) to change the economic conditions for its operations in Egypt, allowing it to extract gas from areas that require a cost greater than that which is currently agreed upon, according to the company’s head of investor relations. He expects that drilling operations on the new wells will start during the current year.

Egypt represents about 40% of the company’s production capacity, whose average production in Egypt and Iraqi Kurdistan, in the first quarter, reached 62,900 barrels of oil equivalent per day, an increase of 1% over the corresponding quarter of 2022. During that period, the company’s production rate in Egypt decreased by 10%.