Dana Gas, via its subsidiary Dana Gas Egypt, owns a 100% interest in three concessions onshore Nile Delta, the El Manzala, West El Manzala and West El Qantara concessions.

As at the beginning of 2011 there are 19 discovered gas fields on these three highly prospective concessions, of which 11 are in production.  Overall production is approximately 230MMscfpd plus 7500 barrels per day of natural gas liquids.  All gas and liquids are sold into the domestic market in Egypt.

An active development programme is ongoing, including the construction of a third gas processing plant which will take production to 400MMscfpd in mid 2012.

The acreage still has extremely attractive exploration potential and an active exploration drilling campaign is planned to continue for a number of years.

The El Manzala Concession, the longest standing of the three concessions, was awarded in May 1995.  The exploration period under the concession agreement expired in 2002 following the award of three development leases: El Wastani, El Wastani East and South El Manzala.  There are currently two producing fields in the concession, El Wastani and El Wastani East.

 
The West El Manzala Concession was awarded in June 2005.  The concession is now in the second two year extension of the exploration period, which expires in June 2012. 

Between 2006 and 2010, twelve discoveries containing commercial volumes of gas and condensate were made.  Development Leases have been awarded which cover the following fields which are in production: Luzi, Dabayaa, El Basant, Sondos, Azhar Delta, Orchid, Sharabas, Faraskur, South Faraskur, The fields are produced through the El Wastani integrated gas plant with the exception of Sondos which, being dry gas, is produced through the South El Manzala plant.

The following fields are being developed to bring into production:  El Panseiya, Marzouk and South Abu El Naga.

The West El Qantara Concession was awarded in June 2005.  The concession is now in the second two year extension of the exploration period, which expires in June 2012.

 
Between 2008 and 2010, four fields were discovered (Sama, Salma Delta, Salma Delta North and Tulip).  The Sama field commenced production in February 2010 and is produced through the South El Manzala dry gas plant.

The Salma and Tulip fields will constitute the core of a new development and production hub in the West El Qantara acreage, where Dana Gas is constructing a new gas and condensate processing plant which is scheduled to be completed in mid 2012.

Dana Gas has had and continues to have considerable exploration success on the concessions. An extensive high-graded prospect and lead inventory has been developed for each of the key geological horizons from the Pliocene (El Wastani and Kafr El Sheikh), Messinian (Abu Madi and Qawasim), Miocene (Sidi Salim) and Oligocene.  Dana Gas estimates the total mean risked prospective resource on the concessions to be 1.5 tcf of gas.

The existing and planned network of facilities, infield lines and export pipelines means that discoveries in the concessions can be quickly and easily tied in and brought on to production making even relatively modest discoveries valuable.