Dana Gas Provides Market Update on Its Drilling Program

Dana Gas, the Middle East’s leading regional private sector natural gas company, provides a market update on its BP-operated Mocha-1 well, drilled in the El Matariya (Block 3) onshore concession in Egypt.

The Mocha-1 exploration well on Block 3 has been completed. The well reached the top of the targeted Oligocene at a depth of 5,375 metres and reached total depth at 5,940 metres, making it the deepest onshore Nile Delta well drilled to date. The well was drilled through the Messinian (conventional) to Oligocene (deep) targets and encountered hydrocarbons. Whilst the Messinian objective encountered wet gas, the primary Oligocene target did not encounter gas in commercial quantities and the well has been P&A’ed. This important exploration well has helped to de-risk other Oligocene prospects and has proven the presence of a working petroleum system in the onshore Oligocene for the first time. The data is being analysed and evaluated to determine further followup potential.

Under the terms of the agreement signed in June 2015, Dana Gas farmed-out Block 3 to BP, which thereby became the operator with 50% equity share with the Company holding the remaining 50% working interest. BP agreed to carry Dana Gas for its 50% share of the cost of the well. Consequently Dana Gas has achieved its objective of drilling this important calibration well at no cost to itself.

Dr Patrick Allman-Ward, Chief Executive Officer of Dana Gas, said:

“The Mocha-1 well is part of a multi-well exploration drilling program we have in place to target material opportunities in Egypt. While not itself commercial, the well results have de-risked further exploration by demonstrating the presence of the Oligocene reservoirs in this location in the basin for the first time and has proven the presence of a working petroleum system. We will use all the information and data collected to refine our understanding of the play and maximize our chances of drilling a commercial gas discovery elsewhere in our exploration acreage. We remain excited about the potential opportunities remaining in our portfolio in Egypt, especially in our Block 6 offshore concession, North El Arish.”

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