UAE-based Dana Gas has discovered more gas in Egypt's Nile Delta, with 9.4 million cu ft per day produced during initial tests, the company said on Sunday.

The Begonia-1 discovery on the West El Manzala concession well also produced 133 barrels of condensate, a light oil, in the test drilling in a sandstone reservoir of the Lower Abu Madi Formation.

Total evaluated resources for the Lower Abu Madi zone are between 7 and 15 billion cu ft, along with around 100,000 barrels of condensate, Dana Gas said in a statement.

A notification of commercial discovery has been made to the government and the Company is preparing to submit a development plan for this discovery as part of a Development Lease application.

It is anticipated Begonia-1 will be tied into the existing South Abu El Naga Field flow line which will take the gas to the El Wastani gas processing plant.

Once fully developed the field will add around 1,600 boepd of production. The Company’s average output for the first five months was 33,600 boepd in Egypt.

Rashid Al-Jarwan, acting CEO, Dana Gas, said: “The company is pleased to announce another successful well discovery which will add to our production, cash flow and reserves in Egypt. We look forward to continue our appraisal drilling activities in the months to come.”

Dr Patrick Allman-Ward, general manager, Dana Gas Egypt, said: “We are pleased to have made another excellent gas discovery in our onshore Nile Delta asset in 2013, following the outstanding results of 2012.”

“The Begonia-1 well continues a series of rich gas discoveries made last year, with the potential for fast hook up and production that helps to contribute to meeting Egypt’s gas needs. We are planning to drill two additional appraisal wells in these discoveries before the end of 2013,” he added. – TradeArabia News Service