Abu Dhabi – Mubasher: Dana Gas, the largest private-sector natural gas company in the Middle East, announced the completion of its drilling operations at the deepwater Merak-1 well.

The well, located in 755 metres of water in the North Al Arish (Block 6) concession in Egypt, was drilled to a depth of 3,890 metres, Dana Gas said in a statement to the Abu Dhabi Securities Exchange (ADX).

Merak-1 well also encountered 46 metres of sand in the Miocene objective interval, without facing commercial hydrocarbons, the Sharjah-based firm highlighted.

Accordingly, the well has been plugged and abandoned, Dana Gas noted.

The well's drilling costs are expected to be below budget and the company will inform the ADX with the exact costs once they are finalised through its financial disclosures.

At least three other independent prospects with material resource potential at the Block 6 Concession area, located in the Eastern Mediterranean Basin, are not impacted by the Merak-1 well results.

The ADX-listed company also noted that it will maintain its operations in Egypt normally.

In the first half of 2019, Dana Gas produced 34,100-kilo barrel of oil equivalent (kboed) from its operations in the North African state.

In June, Dana Gas had received AED 177 million ($48 million) payments from its operations in Egypt in June, including $38 million from the Egyptian government and $10 million from the sale of the second El Wastani condensate shipment in 2019.