Dana Gas highlights development on Balsam-3 well in Egypt within $100M program
Updated 7/23/2025 10:16:00 AMArab Finance: Dana Gas has announced the initial results from the Begonia-2 appraisal well and progress of recompletion works at the Balsam-3 well in Egypt’s onshore Nile Delta, according to a press release.
This is the first stage of the UAE-based company’s $100 million investment program to support local gas production, expand reserves, and meet growing energy demand.
Begonia-2 is the first appraisal well within the Begonia development area and the first of eleven appraisal and exploration wells planned under the program.
The drilling and logging results highlight that the well contains 9 billion cubic feet (bcf) of gas as an initial estimate, which is subject to increase.
Located in the New El-Manzala concession, Begonia-2 will produce an additional 5 million cubic feet daily. The well is operated by the joint venture (JV), El-Wastani Patrolmen Company (Wasco).
The $100 million investment program is expected to boost Dana Gas’s long-term production in Egypt and add approximately 80 billion cubic feet in recoverable gas reserves throughout the two-year plan.
Meanwhile, the drilling phase is being implemented using the EDC-54 rig, and the next well is expected to spud in August.
Dana Gas has also begun to re-complete several wells in other geological layers, which are anticipated to add more reserves and enhance production.
Work is currently underway on the Balsam-3 well, where the group redeployed the EGYPTCO rig from its plug-and-abandonment (P&A) mode.
The estimated reserves from the recompleted well stand at 4 billion cubic feet, with an expected additional production of 3 million cubic feet of gas per day.
The successful recompletion of Balsam-3 is projected to lower the risk associated with drilling exploration wells in the area and further enhance output.
Richard Hall, CEO, Dana Gas, said: “The successful drilling of the appraisal well 'Begonia-2' and the recompletion of the ‘Balsam-3’ well marks a significant strategic milestone. It signals the first steps in our ambitious $100 million investment program in Egypt, which includes drilling 11 new wells.”
The CEO commented: “We have been developing and producing gas in Egypt for over a decade, and the signing of the concession area consolidation agreement with the Egyptian Natural Gas Holding Company (EGAS) late last year has allowed us to acquire additional areas under improved financial terms, enabling us to launch this new phase.
“The success of drilling this well opens vast prospects for gas production in the 'Begonia' area and presents promising future opportunities for expansion and growth. It will also extend the operational life of our assets in Egypt,” Hall added.
Earlier this month, Egyptian Minister of Petroleum and Mineral Resources Karim Badawi visited the ‘Begonia-2’ drilling location to monitor the commencement of operations and follow up on the project’s progress.
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