Dana Gas inks deal to acquire offshore block in Egypt
Dana Gas announced that it has signed a contract for the acquisition of the North El Aris (Block 6) Concession Area located off the eastern shore of the Nile Delta. The exploration block was received on April 2013 after a bidding process was completed, according to Penn Energy.
The financial terms of the block acquisition were not disclosed in the said report.
The said asset is the first offshore block that Dana has acquired in Egypt. The water covered within the block has a range of depth between 20 meters to 1000 meters. The first step in a four-year exploration plan for the block has already been started. This includes well-drilling and seismic acquisition, the report detailed.
The company has also been awarded with a new Development Lease called Balsam. The new lease is situated in the West El Manzala Concession within the region of Nile Delta, the report added.
Chief Executive Officer (CEO) Dr. Patrick Allman-Ward said of the acquisition: "We are very pleased to have signed the North El Arish Concession Agreement. We consider this Block to be highly prospective and it forms an important part of Dana Gas' growth portfolio. Dana Gas remains fully committed to developing the natural gas industry in Egypt, and we are extremely optimistic about the future. We are continuing with constructive dialogue with the Egyptian Government in order to further reduce the outstanding receivables as soon as possible."