Emirati Dana Gas launches $100 mln investment programme
The two-year programme includes drilling 11 appraisal and exploration wells, as well as recompleting existing ones.
It is expected to add approximately 80 billion cubic feet (bcf) of recoverable gas reserves and significantly enhance the company’s long-term production profile in Egypt.
The investment plan has already yielded early success, with the completion of the Begonia-2 appraisal well in the New El-Manzala concession.
Begonia-2, operated by the company’s joint venture with the Egyptian government, Wastani Petroleum Company (WASCO), has confirmed initial reserves of 9 bcf of gas and is set to deliver 5 million standard cubic feet daily (mmscfd) in additional output.
It is the first well to be drilled under the programme, signalling the start of intensified exploration and development activity in the area.
In parallel, Dana Gas has initiated recompletion work on the Balsam-3 well, redeploying the EGYPTCO rig to tap previously unproduced geological layers.
Once completed, the well is expected to add 4 billion cubic feet (bcf) in reserves and an additional 3 million standard cubic feet per day (mmscfd) in production. Its recompletion is anticipated to mitigate exploration risks and further strengthen gas output from existing assets.
“This $100 million programme marks a strategic milestone for Dana Gas in Egypt. The drilling success at Begonia-2 and the start of work on Balsam-3 are just the beginning. With improved fiscal terms under our new concession consolidation agreement with EGAS, we are now well-positioned to unlock more value from our Egyptian portfolio,” said CEO of Dana Gas Richard Hall.
“Our continued investment reflects our long-standing commitment to Egypt and to supporting its energy security agenda. Timely and consistent payments from our partners remain critical to the success of this programme and to ensuring its sustained momentum,” he added.
Drilling is being carried out using the EDC-54 rig, with the following well scheduled to spud in August. The company also plans to re-enter other wells during the programme’s timeframe to maximize recovery from existing assets.
Earlier in July, Minister of Petroleum and Mineral Resources Karim Badawi visited the Begonia-2 site to observe the commencement of operations and review project progress.
His visit aligns with the government’s broader strategy to enhance natural gas production through upstream investment incentives and regional collaboration.
Dana Gas has operated in Egypt for over a decade and remains one of the country’s key private sector contributors to gas production.
The company’s total proven and probable (2P) reserves exceed one billion barrels of oil equivalent (BOE), with an average daily production of 55,000 BOE in 2024. Its regional presence spans Egypt, the Kurdistan Region of Iraq (KRI), and the UAE.
As Egypt continues to navigate growing energy demands amid fluctuating domestic gas production, the government is intensifying efforts to reinforce its energy security through a combination of infrastructure upgrades and fiscal commitments.