Dana Gas recent oil discovery

[default_invetor]

Dana Gas Stock is likely to trade to AED 1.20 per share during the coming quarter, based on rising gas and oil prices and higher production rates in Egypt
What you think

[MNK]

logically maybe... though stock price didn't go up despite the announcement!

[ixtira]

From the press release we are discussing the Al Baraka-4 appraisal well, in the Al-Baraka Field in the Komombo Concession (southern Egypt).

Al Baraka-4 well is only producing 220 BPD (About 16,000 USD per day worth of oil). None of the other wells drilled so-far have been free-flowing. Production of 1300 BPD is possible on Al Baraka-4 with Artificial Lift (type not specified).

The news so far is somewhat promising however I wouldn’t expect to see a significant share price boost until there is data about the size of the field.

[default_monger]

Press Release 07 March 2010:

Dana Gas announces two gas discoveries in Egypt Estimated 35-70 billion cubic feet of gas reserves added and a new gas field brought on stream ahead of schedule Sharjah - Dana Gas PJSC (DANA), the Middle East's first and largest regional private sector natural gas company, has announced two gas discoveries in the Nile Delta, Egypt. The first discovery was at ‘El Panseiya-1’ in the West El Manzala Concession, which encountered 11 metres of net pay in the Kafr El Sheikh formation and produced 10 million standard cubic feet per day (mmscfpd) of dry gas. The preliminary estimate of the recoverable reserves is from 8-13 billion cubic feet (bcf) of gas.” The second discovery, ‘South Faraskour-1’, also in the West El Manzala Concession encountered 20 metres of net pay in the Abu Madi formation and 1.4 metres in the Kafr El Sheikh formation. The well tested 16.3 mmscfpd of gas with condensate. The preliminary estimate of the recoverable reserves is 27-57 bcf of gas with associated condensate. Both the El Panseiya-1 and South Faraskour-1 discoveries are expected to be tied in to the Company’s nearby El Wastani gas processing plant by the end of 2010. Mr Ahmed Al Arbeed, Dana Gas CEO, said “Our team in Egypt continues to deliver tremendous results. We are delighted that these two exploration wells have been successful. They build upon Dana Gas Egypt’s outstanding 2009 achievement of eight discoveries from twelve exploration wells, which resulted in a 40% increase in proved plus probable (2P) reserves to 132 million barrels of oil equivalent at the end of the 2009.” Dana Gas is also pleased to announce the first production from its West Qantara Concession in the Nile Delta from the Sama Field which was put on stream in February five weeks ahead of schedule, just eight months after discovery.