The exploration well is located in 755 m of water in the North El Arish concession, also known as block six.
The Merak-1 well will be drilled with the sixth generation dynamically positioned drillship ‘Tungsten Explorer’ on hire from ADVantage Drilling Services SAE – a joint venture between ADES International and Vantage Driller II Co (a subsidiary of Vantage Drilling).
The well is expected to take about 70 days to drill, Dana Gas revealed.
The prospective resources to be added from this well in case of successful exploration could reach four tcf of natural gas, the company noted.
In 2007, Dana Gas purchased Centurion assets onshore the Nile Delta in Egypt. Since then, 48 exploration wells have been drilled with a success rate of 67 per cent resulting in 25 new pool discoveries.
The company stated that proved plus probable reserves were increased by more than 120 per cent and production by 50 per cent. Dana Gas production from Egypt is currently more than 34,000 boepd.
Patrick Allman-Ward, CEO of Dana Gas, commented, “We have commenced an exciting exploration programme in our Egypt block six concession area. Until now, all of our Egyptian operations have been onshore the Nile Delta.”
“Whilst we continue to optimise production from our 14 existing fields and explore new prospects in the Nile Delta region, the potential addition of new world-class gas resources offshore presents an opportunity for significant growth in our Egypt business that would be transformative for Dana Gas,” he added.