The El Basant-2 well, located 1.4km northeast of the El Basant-1 discovery in the West El Manzala Concession, has been spudded, reaching a total depth of 3,050m and encountered 37m of net sand pay with good porosity and permeability in the Qawasim formation. According to Hany Elsharkawi, Dana Gas's country director in Egypt, the cumulative proven and probable reserves in the El Basant hydrocarbon accumulation significantly raises Dana's reserves in Egypt. Following an extensive testing program at El Basant-2, Dana Gas plans to transport the hydrocarbons produced from the well through a pipeline to its El Wastani field facilities, which lie about 10km to the north of the well. Dr Elsharkawi said: "Combined with Dana Gas's other discoveries this year, it shows that our 2008 drilling campaign was correctly conceived and implemented and therefore on the basis of this success we plan to continue with further drilling in this concession, where several prospects of similar nature have been identified. "This acreage is particularly attractive to us as we have established production in the area and we are able to bring new discoveries on production quickly and at comparatively low cost. In addition our gas is sold at a fixed price and therefore our gas revenues have not been negatively affected by the recent drop in global oil prices. Dana Gas has already applied for a development lease, which we expect to be granted soon, and we anticipate a production start-up by the end of March 2009."