Dana Gas reported on Wednesday 9 billion cubic feet (bcf) of gas proven reserves from initial drilling results of Begonia-2 appraisal well located in the New Manzala concession area in the Nile Delta region. Production from the well is expected to reach 5 million cubic feet per day (mcf/d) of natural gas.

Dana Gas also began recompletion operations at balsam-3 well onshore the Nile Delta. The well’s reserves are estimated at 4 bcf, with anticipated daily output of 3 mcf.

This marks the UAE company’s start of $100 million investment program in Egypt aimed at boosting domestic gas production, increasing reserves, and meeting rising energy demand.

Through this program, Dana Gas aims to add up to 80 bcf of recoverable reserves over two years in Egypt. Drilling is being conducted using the EDC-54 rig, with the next well scheduled to spud in August.

Minister of petroleum and Mineral Resources Karim Badawi recently met with Richard Hall  to review the company’s current activity and its future development plans in its concession areas. During the meeting, Badawi praised the results achieved by the company, appreciating the efforts of its team. He stressed that the Ministry and all government bodies are committed to providing all necessary support to partners through an integrated work system aimed at overcoming challenges and accelerating the connection of new discoveries to the production grid.

Hall said that Egypt is a strategic partner and a key hub for Dana Gas investments due to its promising areas. He expressed the company’s desire to intensify exploration activities and expedite the tie-in of newly discovered wells to production. He also referred to Minister Badawi’s visit to the Begonia-2 well site in the New Manzala onshore concession in the Nile Delta, operated by El Wastani Petroleum Company (WASCO) in partnership with Dana Gas. The visit was to oversee the start of an integrated program to drill 11 new wells.

These wells are expected to add approximately 160 billion cubic feet (bcf) of natural gas, with an additional average production of about 100 million cubic feet per day (mmcf/d) of natural gas and 2,000 barrels per day (bbl/d) of condensates.

The significance of the Begonia-2 well stems from its role as an appraisal well for the Begonia development area. It aims to assess the natural gas reserves in the Abu Madi formation within the Miocene layer. Initial estimates indicate a reservoir volume of up to nine bcf, which will bolster future development plans and represent a contribution to increasing domestic natural gas production. This aligns with ongoing efforts to secure and diversify natural gas supply sources.