Dana Gas Egypt. Photo: Dana Gas Website
According to a company statement, the well is the fourth of 11 development and exploration wells included in Dana Gas’s $100 million investment programme launched in July.
The programme aims to support domestic gas production, boost long-term output, increase reserves, meet rising energy demand, and add 80 bcf of recoverable gas over its two-year duration.
The North El-Basant 1 well is expected to produce over 8 million cubic feet per day (mmscfd) once it is connected to Egypt’s national network.
The firm has already completed drilling three wells in 2025, adding 10 mmscfd.
“By increasing local gas production, the programme will help reduce Egypt’s reliance on imported LNG and fuel oil and is expected to generate more than one billion dollars in savings for the national economy over time,” Dana Gas CEO Richard Hall said.
Dana Gas also plans to drill a fifth well, the Daffodil exploration well, during the first week of January 2026.
“Our agreement with EGAS has enabled us to secure additional acreage under improved fiscal terms and to accelerate this new phase of drilling activity,” Hall stated.
Outside the investment programme, the company recompleted three wells that added 9 mmscfd of production. Combined, the drilling and recompletion programmes are adding about 30 mmscfd of new output.
The programme has also completed the Begonia-2 appraisal well in the New El-Manzala concession, operated by the firm’s joint venture with the Egyptian government's Wastani Petroleum Company. The well has initial reserves of 9 bcf and is set to deliver 5 mmscfd in additional production.
Egypt continues to position itself as an Eastern Mediterranean gas hub, liquefying both domestic and imported gas for re-export to Europe under a 2022 memorandum of understanding with the EU and Israel.
However, recent supply shortages have complicated this strategy, as more gas is directed to the local market and the country seeks additional pipeline imports and long-term LNG purchase agreements to keep its liquefaction plants running while avoiding domestic shortages.
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