Dana Gas announced on Thursday that it has made a major new gas discovery in Egypt’s onshore Nile Delta. The company successfully drilled the North El-Basant 1 exploratory well, which has already shown very promising results.

Strong early results

Early tests suggest the well may hold between 15 and 25 billion cubic feet (bcf) of gas. Once production begins, the well is expected to produce more than eight million cubic feet of gas per day (mmscfd). After it is connected to Egypt’s national gas grid, this gas will support the country’s domestic energy supply.

This well is part of Dana Gas’s $100 million drilling program. The program includes 11 development and exploration wells. Its goal is to increase Egypt’s gas production, expand the country’s gas reserves, and help meet rising energy needs.

Earlier this year, the company successfully drilled three other wells. Together, those wells added 10 mmscfd of new gas output. The full drilling program is expected to significantly support Egypt’s long-term energy production and provide around 80 bcf of recoverable gas reserves over time.

Apart from the main program, Dana Gas also completed additional work on three older wells. By reworking and improving these wells, the company added another 9 mmscfd to its production. Altogether, the company’s drilling and recompletion efforts are providing about 30 mmscfd of new gas.

What’s next?

Dana Gas plans to drill the program’s fifth well, called the Daffodil exploration well, in the first week of January 2026. This will continue the company’s efforts to grow its gas output and discover more reserves in the Nile Delta region.

What the company says

Richard Hall, the CEO of Dana Gas, said the results from the North El-Basant-1 well show strong progress.

He stated, “The North El Basant-6 result builds on the momentum of our earlier wells and supports our efforts to increase domestic gas supply and reserves.”

He also explained that boosting local gas production will help reduce Egypt’s dependence on imported liquefied natural gas (LNG) and fuel oil. According to Hall, the program could eventually save Egypt more than one billion dollars by cutting import costs and strengthening energy security.

Financial performance

Despite the positive drilling news, Dana Gas reported weaker financial results for the first nine months of the year. The company’s net profit dropped 11.3%, falling to $111.6 million. The decline was mainly due to lower gas prices and reduced production in Egypt.

Revenue for the period ending in September also fell. It went down by 12.3%, reaching $285.3 million, compared to $325.4 million during the same period last year.

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