UAE-based energy company Dana Gas has launched a major $100mn investment programme aimed at enhancing local gas production and expanding reserves, Hapi reported on July 23, citing a statement from the company.
Dana announced promising preliminary results from its appraisal well Begonia-2 and started recompletion operations at the Balsam-3 well, both located in Egypt’s onshore Nile Delta concession.
The Begonia-2 well is the first appraisal in the Begonia development area. Initial drilling results indicate the presence of approximately 9bn cubic feet (bcf) of natural gas, with potential for further increases. The well is expected to contribute around 5mn cubic feet per day to the company’s output.
The success forms a main part of Dana Gas’s broader investment strategy, which includes drilling 11 new wells over the next two years. The company aims to increase recoverable reserves by around 80 bcf.
Meanwhile, Dana has begun recompletion operations at the Balsam-3 well, targeting different geological layers. The well, reactivated using a rig from EGYPTCO, had previously been sealed. Estimated reserves from Balsam-3 stand at 4 bcf, with expected daily production of 3mn cubic feet, helping to reduce the risks associated with drilling new exploration wells.
CEO Richard Hall, said these developments represent a strong start to the company’s ambitious programme. He referred to he positive impact of the recent integration agreement with EGAS, which provided new concession areas with favourable financial terms, and noted that regular payments from the Egyptian government have supported continued investment.
The Egyptian government has paid an additional $1bn in overdue payments to foreign oil companies in the first week of July, according to Al Sharq. The latest tranche brings total repayments since June 2024 to $8.5bn. The remaining $2.5bn in arrears is scheduled to be cleared by the end of September 2025 under the government's repayment plan.
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