London, 30 July (Argus) — UK-listed independent Dana Petroleum has made another oil discovery in Egypt's North Zeit Bay, onshore Gulf of Suez.

The Fin-1X exploration well is located around 3km from the Lorcan oil discovery announced last month and is in the same production-sharing contract (PSC) area. The well encountered good-quality oil-bearing sands, delivering an average flow rate of 1,049 b/d, the company said.

Dana estimates that the two discoveries have initial proven reserves of 10mn-12mn bl, with the potential for “considerable upside”. The company, which holds a 100pc stake in the PSC area and is the operator, has submitted a preliminary development plan with Egypt's state-owned oil company EGPC. The full development plan is to tie production from the area back to Dana's East Zeit oil and gas processing plant, which is 15km southeast of the two fields.

The new discovery will put pressure on South Korea's state-owned oil firm KNOC, which is trying to buy Dana. KNOC said last week that it had raised its takeover offer for Dana but had not yet received a satisfactory response allowing both parties to move forward with any deal.

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