The well will be drilled using 2000 HP Egyptian Drilling’s rig to a depth of 3,200m, and is expected to be completed in approximately four months.
Targeting the Qawasim formation, the well will be followed by the drilling of a 700m horizontal section.
The Balsam-2 well drilling marks the first in a major campaign. which includes 30 wells and other work-overs, planned for the next three years.
The Balsam-2 drilling is also a part of the gas production enhancement agreement (GPEA), under which Dana Gas will implement a work program, to sell the government’s share of incremental condensate production at market rates.
By end 2018, this process will eliminate the receivables balance, provided that Egypt does not make further bullet payments to its petroleum sector.
Dana Gas Egypt general manager Dr Mark Fenton said: "We are very happy to be commencing our drilling operations as part of the GPEA.
"It represents the culmination of many months of preparation work and planning to assemble the portfolio of targets for drilling in conjunction with preparing our infrastructure to receive this additional gas and condensate.
"Balsam-2 is the company’s first horizontal well in Egypt and is a fitting well to kick off this drilling campaign which effectively targets to develop all the company’s remaining conventional 2P gas reserves."
