Wednesday, 21 July 2010

Dana Petroleum signs agreement with BG to acquire 50 per cent interest in the El Manzala

Dana Petroleum has signed an agreement with BG to acquire a 50 per cent interest in the El Manzala concession, located in the Mediterranean Sea, offshore Egypt. The concession is a large production sharing contract (PSC) area, covering some 630sq km, situated in the offshore Nile Delta region.

Dana will finance the cost of the next exploration well up to an agreed cap in order to earn the 50 per cent interest. The company has assessed that this area is prospective in both the Pliocene play, analogous to Dana's two gas discoveries in the West El Burulus concession (WEB-1 and Papyrus), as well as having further potential in the deeper high pressure horizons. The deal is subject to standard regulatory procedure, and will add significantly to Dana's expansion in Egypt's offshore Nile Delta region.

“We look forward to working with BG, 50/50 in this large concession in the eastern part of the Nile Delta, with a plan to drill in early 2011. This further extends Dana's strategic position and growth opportunities across Egypt, where we are already 50/50 partners with Gaz de France in the western area of the Nile Delta, together having made two gas discoveries with our first two wells at WEB-1 and Papyrus. Dana is also 50/50 partners with Apache in the Western Desert where the group has made, and successfully brought onstream, several oil discoveries," said, Dana's chief executive, Tom Cross.

To find out more about Dana Petroleum please visit Dana Petroleum's web site, which you can find here.

For more news and expert analysis about Egypt, please see Egypt Politics & Security.

© 2010 Menas Associates

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