Dana Gas Has Made Two New Gas Discoveries in The Nile Delta Basin

Dana Gas, the Sharjah based producer, has made two new gas discoveries in the Nile Delta basin.

Successful drilling at the two wells, located near existing Dana operations, will increase the company's proven reserves by at least 17 million barrels of oil equivalent and could boost reserves by up to 95 million barrels of oil equivalent a 55% increase in the company's proven reserves.

Mr Rashid Al Jarwan executive director and acting chief executive of Dana Gas said that "Our latest two discoveries confirm the Nile Delta as a prolific hydrocarbon bearing basin. Dana Gas remains fully committed to the long term development of Egypt's gas industry and its essential role in fuelling the nation's economic growth."

The findings are welcome news to both company and country.

Dana Gas is faced with payment delays in both Egypt and Iraqi Kurdistan, its two key production sites. Insufficient receivables have forced it to refinance a USD 1 billion sukuk in November.

Mr Majid Jafar chief executive of Dana's parent company Crescent Petroleum said that Dana is the sixth largest gas producer in Egypt. While the company is now being paid for the gas it produces, the Egyptian government still owes it payments for gas delivered during the political upheavals in the past.

Meanwhile, Egypt is struggling to free up enough gas to fuel economic growth in the aftermath of the Arab Spring.