Dana Gas Starts Drilling for Gas in Nile Delta

Dana Gas has commenced drilling the Balsam-2 development well in the Balsam development lease onshore Nile delta in Egypt.

The well targets the Qawasim formation at a depth of 3200 m and will be the first horizontal well drilled by Dana Gas Egypt, and one of very few drilled in the onshore Nile Delta to date, the company said Sunday.

The well is expected to take approximately four months to drill and complete.

The Balsam-2 well is the first in a major drilling campaign of some 30 wells and a large number of work-overs that will be drilled in the next 3 years and forms part of the Gas Production Enhancement Agreement (GPEA) work commitment, Dana Gas said.

As per the agreement, Dana Gas has committed to a work programme in return for the ability to sell the government’s share of incremental condensate production at market rates over and above an agreed no further action decline production forecast. 

Mark Fenton, GM Dana Gas Egypt, commented: “Balsam-2 is the company’s first horizontal well in Egypt and is a fitting well to kick off this drilling campaign which effectively targets to develop all the Company’s remaining conventional 2P gas reserves.”