Offshore staff

SHARJAH, UAE -- Dana Gas plans an exploration and development program for its Egypt assets in 2008 that includes the drilling of 19 wells, including 15 exploration and four development wells. The total upstream capex for Egypt in 2008 exceeds $170 million, and five drilling rigs are being acquired to implement the program, Dana says.

The wells are aimed at the Komombo concession in Upper Egypt and the two Nile Delta concessions. The plan calls for one exploration and one development in the Komombo concession, three development and 14 exploration wells in the Nile Delta, five of which are targeting the Sidi Salem formation. The wells to the Sidi Salem formation are technically challenging, targeting depths around 4,000 m (13,123 ft), the company says.

"This is a defining year for the upstream operation in Egypt, and this exploration and development program could potentially double the size of our reserves, and would provide a further boost to Dana Gas production and revenues in Egypt," says Dr. Hany Elsharkawi, Dana Gas country director in Egypt. "The gas sector in Egypt is expanding rapidly, and we are confident that this program will grow our already strong position in the country."

03/31/2008