Dana moves ahead with Sharjah development

Dana Gas is moving ahead with plans for the exploration and development of the Western Offshore concession in Sharjah.

Offshore staff

SHARJAH -- Dana Gas is moving ahead with plans for the exploration and development of the Western Offshore concession in Sharjah.

This follows the signing of a 25-year concession agreement between Dana Gas and the government of Sharjah in March 2008, giving the firm a 50% working interest in the project. The agreement covers a total offshore area of over 1,000 sq km (386 sq mi), and includes the Zora gas field in Sharjah, which was discovered in 1979.

Under the agreement, the work program carried out by Dana Gas will include the drilling of 3,000 ft (914 m) of horizontal section in each of the two wells originally drilled by Crescent Petroleum, testing and completing both wells, the installation of offshore platform for immediate processing and production, and the transportation of the processed gas via 25 km (15 mi) of offshore pipeline.

The agreement also provides for exploration works within the concession area, including geological evaluation studies, followed by seismic surveys and the drilling of exploration wells.

Preparations for work on the concession area are well underway, and reservoir-related studies on the Zora gas field have already been carried out.

The company is currently finalizing selection of a major construction yard for fabrication of the wellhead platform jacket. The budgeted costs of the development phase of the Zora field are estimated at $70 million, while costs for further exploration studies and work on one well are estimated at $65 million from 2010 onwards.

01/27/2009

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