Fin-1X was drilled to 10,038 feet, and lies about three kilometres from the Lorcan oil discovery announced in June.

The probe hit good-quality oil bearing sands in the Kareem formation, in line with Dana's prognosis prior to drilling.

During the drill stem test, Fin-1X flowed strongly with high downhole pressures delivering an average flow rate of 1049 barrels of oil per day through a 52/64 inch choke.

The flow rate was restricted by the temporary flow testing facilities and the requirements to truck the produced oil from the desert location. The well has been retained as a future oil producer.

A preliminary development plan for Lin and Lorcan has already been submitted to the Egyptian General Petroleum Corporation (EGPC) for agreement.

Dana estimates that the two finds have proven up initial reserves of between 10 million to 12 million barrels of oil, with the potential for considerable upside. Further drilling is planned.

Once the development plan has been agreed with EGPC, an application will be submitted to the ministry for a development lease.

Following the development lease being lodged, the potential for early oil production will be discussed with EGPC.

With EGPC's agreement, early production facilities which would allow oil to be exported by road tanker could be installed and operating within one month.

The full development plan is to tie production from this PSC area back to the East Zeit oil and gas processing plant, which is situated 15 kilometres south-east of the Lorcan and Fin fields.

The drilling rig will now move to another operator to drill one well, which was a pre-existing contractual commitment for the rig, before returning to Dana's North Zeit Bay concession.

Dana expects the rig to return in October, when it will drill at least one appraisal well at Lorcan plus a further exploration well in this important PSC area.

Drilling on the North Zeit Bay concession will also continue next year.

Dana holds 100% of the PSC.

Source: http://www.upstreamonline.com/Dana_scores_egypt_double