Dana Makes New Oil Field Discovery In Egypt

Published: 30-Jul-2010

Dana Petroleum's Fin-1X exploration well has discovered a new oil field at the North Zeit Bay Production Sharing Contract (PSC) area onshore in the Gulf of Suez in Egypt. This follows the discovery of the Lorcan oil field, made last month in the same PSC area.

Dana is the 100% stakeholder and operator of the Fin-1X well, which was drilled to a depth of 10,038ft. The well encountered good quality oil bearing sands in the Kareem formation in line with the company's prognosis prior to drilling.

During the drill stem test, the Fin-1X well flowed strongly with high downhole pressures, delivering an average flow rate of 1,049 barrels of oil per day through a 52/64" choke. The flow rate during this test was restricted by the temporary flow testing facilities and the requirements to truck the produced oil from the desert location. The well has been retained as a future oil producer.

The Fin discovery together with Lorcan, which flowed at 4,714 barrels of oil per day and was also constrained by the testing equipment, confirms that this area will be very attractive to develop, Dana said.

A preliminary development plan has already been submitted to the Egyptian General Petroleum Corporation (EGPC) for agreement. Dana estimates that the two discoveries so far in this PSC area have proven up initial reserves of 10-12 million barrels of oil with the potential for considerable upside beyond these initial proved volumes.

With EGPC's agreement, early production facilities that will allow oil to be exported by road tanker can be installed and operating within one month. The full development plan is to tie production from this PSC area back to the East Zeit oil and gas processing plant, which is situated 15km to the south east of the Lorcan and Fin oil fields. Dana also holds a 100% working interest in East Zeit.

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