Dana Petroleum, of Aberdeen, has announced an Egyptian deal.
The company has signed an agreement with BG International to acquire a 50% interest in the El Manzala offshore area concession in the Mediterranean.
Dana will fund the cost of the next exploration well in the area to earn the stake.
It said the deal continued Dana’s programme to grow its business in Egypt and the offshore Nile Delta in particular, which it added provided world-class upside opportunities for near-term drilling and development.
Dana chief executive Tom Cross said yesterday: “We look forward to working with BG 50-50 in this large concession in the eastern part of the Nile Delta, with a plan to drill in early 2011.
“This further extends Dana’s strategic position and growth opportunities across Egypt, where we are already 50-50 partners with Gaz de France in the western area of the Nile Delta, together having made two gas discoveries with our first two wells at Web-1 and Papyrus.
“Dana is also 50-50 partners with Apache in the Western Desert where the group has made, and successfully brought on stream, several oil discoveries.
“In addition, Dana is currently drilling at Fin, close to our recent Lorcan oil discovery onshore in the Gulf of Suez (Dana 100%) and also at Nefertiti, offshore Gulf of Suez (Dana 65%).”
Dana is understood to still be in talks with Korea National Oil Corporation (KNOC) on a takeover of the Aberdeen company that could potentially be worth more than £1.3billion.
KNOC said at the start of this month it was in very preliminary talks over a possible cash offer for Dana.