Dana Gas signs agreement with KIOEC

Dana Gas, the Middle East's first regional private-sector natural gas company, announced that it has signed a farm out agreement with Kuwait International Oil and Environment Company (KIOEC), a subsidiary of TAQAT Holding and Gulf Oil Investments, to participate with a fifty percent working interest in Dana Gas' Komombo Concession, located in the Western Desert, Upper Egypt and approximately 800 Km south of Cairo. Dana Gas will remain as operator of the concession. The concession covers nearly 23,000 sqkm and is currently in the second exploration period of three years duration. The Komombo Basin is considered to be lightly explored frontier basin with only three wells drilled to date. However, drilling results to date have proven a working hydrocarbon system with significant exploration potential.

The agreement was signed by Dr. Hany Elsharkawi, Dana Gas Egypt Country Manager, and Eng. Badr Al Yehya, Chairman of KIOEC, in a ceremony in Cairo. Technical evaluation of the concession to date includes the interpretation of geological and geophysical data and the acquisition of 516 Kms of 2-D seismic, resulting in the identification of drillable prospects and four addition leads. Drilling is scheduled to commence in mid 2007. Source