Promising Results from the Appraisal Well “Begonia-2” and the Recompletion of “Balsam-3” in the Onshore Nile Delta, Arab Republic of Egypt
The Ministry of Petroleum and Mineral Resources and Dana Gas have announced promising results from the Begonia-2 appraisal well and the initiation of recompletion works at the Balsam-3 well in Egypt’s onshore Nile Delta. These milestones mark the first stage of Dana Gas’s $100 million investment programme to support domestic gas production, increase reserves and meet growing energy demand.
“Begonia-2” is the first appraisal well within the “Begonia” development area. Drilling and logging results indicate that the well contains 9 billion cubic feet (bcf) of gas as an initial estimate, which is subject to increase. Begonia-2 will produce an additional 5 million cubic feet per day. The well is located in the “New El Manzala” concession and is operated by the Joint Venture, El Wastani Patrolmen Company (Wasco). It is the first of eleven appraisal and exploration wells planned to be drilled using EDC-54 rig as part of Dana Gas’s ambitious $100 million investment program. This program is expected to significantly contribute to long-term production levels and increase total additional gas volumes by around 80 bcf.
In parallel with and in addition to the drilling plan, operations have also begun to re-complete several wells in other geological layers, which are expected to add more reserves and enhance production. In this context, work is currently underway on the Balsam-3 well, after Dana Gas repurposed the EGYPTCO rig from its P&A mode. The expected reserves from this well are estimated at around 4 bcf, with an anticipated additional production of 3 million cubic feet of gas per day. The successful recompletion of Balsam-3 reduces the risk associated with drilling exploration wells in the area.
On this occasion, Richard Hall, Dana Gas CEO, stated at the rig site: “The successful drilling of the appraisal well ‘Begonia-2’ and the recompletion of well ‘Balsam-3’ marks a significant strategic milestone. It signals the first steps in our ambitious US$ 100 million investment program in Egypt, which includes drilling 11 new wells. We have been developing and producing gas in Egypt for over a decade, and the signing of the concession area consolidation agreement with the Egyptian Natural Gas Holding Company (EGAS) late last year has allowed us to acquire additional areas under improved financial terms, enabling us to launch this new phase.
“The success of drilling this well opens vast prospects for gas production in the ‘Begonia’ area and presents promising future opportunities for expansion and growth. It will also extend the operational life of our assets in Egypt. We are fully committed to making every effort to ensure the success of the program and its efficient and timely execution. Dana Gas reaffirms its strong commitment to reinvesting the payments it receives from the Egyptian government into executing this ambitious program and supporting future development projects in the country. Regular and timely payments from our partners are crucial to sustaining these investments.”
Earlier this month, Karim Badawi, the Egyptian Minister of Petroleum and Mineral Resources, made a site visit to the ‘Begonia-2’ drilling location to closely observe the commencement of operations and monitor the project’s progress. This visit comes as part of the comprehensive incentive packages launched by the Ministry of Petroleum and Mineral Resources to boost domestic natural gas production, strengthen the national energy system, and drive economic development through the optimal utilization of resources in cooperation with regional partners.
