Troubled UAE-based independent Dana Gas on 30 December announced two new discoveries on its West El Manzala concession onshore Nile Delta. The ‘Balsam-1’ well tested 10mn cfd gas and 1,000 b/d condensate via a 20/64 inch choke. Based on this Dana estimates Balsam reserves of between 76bcf (proved) and 436bcf (proved plus probable) gas with condensate reserves of 3-9mn barrels.
Together with the more modest ‘Aylam-1’ discovery this “could increase Dana Gas’ commercial reserves by up to 55%,” the company claims. The fact that the company leads its announcement of the discovery with such a bold claim – on the back of preliminary drilling results – is an indication of the company’s need to shore up its balance sheet despite the recent delayed re-financing of its outstanding $1bn Sukuk (MEES, 21 December). (CONTINUED - 655 WORDS)