UAE's Dana Gas 'abandons' Egypt's Merak-1 deepwater well drilling
ADX-listed and Sharjah-based company says it did not encounter commercial hydrocarbons during its programme
Abu Dhabi Securities Exchange-listed (ADX) and Sharjah-based Dana Gas revealed that it had completed drilling work on Egypt’s Merak-1 offshore deepwater well, which is located 755m-deep at Egypt's North El Arish (Block 6) concession.
In a stock market missive, Dana Gas, which produced 34,100 kilo-barrels of oil equivalent per day in Egypt in Q1 2019, said the well had been drilled to a total depth of 3,890m.
During the drilling process, the company encountered 46m of sand in the Miocene objective internal, but did not spot any commercial hydrocarbons.
The well has been plugged and abandoned, the company said in the stock market filing, adding that costs from the programme were expected to be below budget.
The firm added that Block 6 Concession contains "at least three other independent prospects with material resource potential that are unaffected by the Merak-1 well result".
Dana Gas began drilling the well in May 2019, revealing at that time that four trillion ft3 of natural gas was expected from the exploration’s success.
The Sharjah-headquartered company had hired sixth-generation drillship Tungsten Explorer from Advantage Drilling Services to drill the well.