Dana Gas sees Iraq boost
Egypt and Iraq deliver 29% aggregate production leap in Q2 Dana Gas has announced its financial results for the quarter ended 30th June 2010. Revenue from the sale of hydrocarbons increased to approximately US$116 million, with gross profit reaching $48 million. These figures represent increases of 41% and 84% respectively, compared to the same period last year. This is due to strong production growth, amounting in aggregate to 29%, from the company’s operations in Egypt (where 10 fields are now producing) and in the Kurdistan Region of Iraq, where production from the Khor Mor field continues to increase. It is also due to higher market prices for condensate, LPG and oil during the quarter, as compared to Q2 2009. Dana Gas Egypt concessions produced 3.80 million boe during the second quarter, an increase of 19% compared to the same period last year. This included production from the Orchid field, which was brought on stream in April 2010. The company also added its third new gas field discovery of 2010, Ward Delta-1 in the Nile Delta, which follows on from the El Panseiya-1 and South Faraskour-1 discoveries in the first quarter of this year. This continues the Dana Gas exploration track record with three discoveries from four wells in the first half of 2010, building on the 2009 performance of eight discoveries from twelve exploration wells. In the Kurdistan Region of Iraq Dana
Weatherford are active in Iraq.
Weatherford began drilling a new oil well in Iraq near al-Amara city in August, as part of a US$224 million deal to drill 20 wells in 31 months. Amara lies 390km south of Baghdad. “Weatherford has started drilling the new well in the al-Bazrakan oilfield, which is 70km east of Amara,” said Ali Abbas al-Tarfi, director of Missan Oil Company. “This step is the first in a deal to drill 20 wells to increase productivity from the province’s oilfields that are now hitting 100 000 bpd,” he added.
Dana Gas CEO, Ahmed Al-Arbeed, says Kurdistan production continues to grow.
Gas, through its 40% share, produced 1.06 million boe of gas and condensate during the quarter, an increase of approximately 88% over the same period in 2009. The first train of the LPG Plant at Khor Mor is in partial operation, producing gas and condensate. Production of LPG will start later in 2010, which will further increase production. “In Egypt, our development programme continues to bring our gratifying stream of undeveloped discoveries into production and our 14 well exploration programmes for 2010 continues to deliver class leading results with three discoveries from our first four wells,” said Dana Gas chief executive officer, Ahmed Al-Arbeed. “We continue to target a 20% increase in produc-
tion for the full year compared to 2009 and, with the majority of our exploration drilling in the second half of the year, I look forward to hopefully being able to bring more positive news,” he continued. “In the Kurdistan Region of Iraq, production continues to grow as we supply gas to meet the demands of the Erbil and Bazian power stations and it remains a source of pride to Dana Gas that this region of Iraq is one of the few with a reliable electricity supply. We are producing gas and condensate through our new permanent facilities and the first train of the LPG plant at Khor Mor will commence LPG production very soon. Consequently, Dana Gas’ growth is set to continue,” concluded Al-Arbeed.
Tethys Oil said in August that the Saiwan East-4 well (SE-4) on Oman’s onshore Block 4 has successfully been drilled and preliminary results evaluated. The well was drilled to a total depth of 2463 metres. Several oil bearing layers were encountered including the Khufai limestone formation, from which 78 metres of core was extracted. The Bourbon Supporter, the second of a series of two IMR (Inspection Maintenance Repair) vessels has been delivered, strengthening the company’s existing fleet of 15 IMR vessels in July. The Bourbon Supporter is currently on its way to Saudi Arabia for a two year contract, where it will operate from the end of August as a support vessel in subsea seismic testing.
September 2010 Oil&Gas Middle East
Oil & Gas Middle East - Sept 2010 - ITP Business