United Arab Emirates-based Dana Gas has announced a significant gas and condensate discovery at its El Basant-2 well in the Nile Delta Concession in Egypt.

According to the company, the gas and condensate reserves are estimated to be in excess of 130 billion cubic feet (bcf) of gas at its El Basant-2 well.

The Salma-1 is the company’s second well drilled in the West Qantara Concession, approximately 15km from Dana Gas’s South Manzala gas processing facilities. The first production test on the well was initiated before the end of December 2008, said the company.

Dana Gas said that the well penetrated 25m of net pay in the good quality sandstone reservoir of the Abu Madi formation, and additional reserves are currently estimated to exceed 150bcf of gas. An additional four meters of sandstone gas pay was encountered in the shallower Kafr El Sheikh formation.

Ahmed Al-Arbeed, upstream executive director of Dana Gas, said: We are pleased with the results of Dana Gas’s drilling program in 2008, and the results yielded by the Salma-1 well call for exploratory drilling in the area, where there are several similar prospects which we will be planning soon.

Dana Gas claims to be the first regional private-sector natural gas company in the Middle East, established with over 300 reputable founder shareholders from across the Gulf Cooperation Council (GCC) region. Headquartered in Sharjah, UAE, the company has offices in Saudi Arabia, Kurdistan Region – Iraq, Egypt, and UK.