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Doc. No. 15-1053-H1 Rev. 0 – JANUARY 2016

Dana Gas Komombo Concession, Egypt Investigative Study of the Hydraulic Fracturing and Seismic Activities Conducted by DANA GAS

DANA GAS

Doc. No. 15-1053-H1 Rev. 0 – JANUARY 2016

All rights, including translation, reserved. No part of this document may be disclosed to any third party, for purposes other than the original, without written consent of D'Appolonia.

Dana Gas Komombo Concession, Egypt Investigative Study of the Hydraulic Fracturing and Seismic Activities Conducted by DANA GAS

DANA GAS

Rev. Description Prepared by Controlled by Approved by Date

0 First Issue R. O’Connor A. Casartelli G.B. De Franchi Janaury 2016

Doc. No. 15-1053-H1 Rev. 0 – January 2016

Dana Gas, Komombo Concession, Egypt Page i Investigative Study of the Hydraulic Fracturing and Seismic Activities Conducted by DANA GAS DANA GAS

TABLE OF CONTENTS

LIST OF TABLES II

Page

LIST OF FIGURES II LIST OF PHOTOS III 1 EXECUTIVE SUMMARY 1 2 INTRODUCTION 3

2.1 ACTIVITIES UNDERTAKEN AND DATA SOURCES 3 2.2 PROJECT SETTING AND DESCRIPTION 3 2.3 HYDROLOGIC CONDITIONS 7

2.3.1 Regional Setting 7 2.4 HYDROGEOLOGICAL CONDITIONS 11

2.4.1 Geology and Hydrogeology 11 2.4.2 Project Site Hydrogeological setting 18

3 ASSESSMENT OF PROJECT ACTIVITIES 19 3.1 SITE AND SURFACE FACILITY DEVELOPMENT 19

3.1.1 Roads and Well Pads 19 3.1.2 Impoundments, Pits 20 3.1.3 Other Surface Facilities 21

3.2 SEISMIC ACTIVITIES 21 3.2.1 Seismic Project Activities and Process Descriptions 21 3.2.2 Evaluation of Possible Impacts of Seismic Exploration 26

3.3 DRILLING AND HYDRAULIC FRACTURING 27 3.3.1 Drilling and Fracking Activities and Description 27 3.3.2 Data Analysis 29

3.4 FIELD OBSERVATIONS 29 4 CONCLUSIONS AND FINDINGS 30 REFERENCES


Dana Gas, Komombo Concession, Egypt Page ii Investigative Study of the Hydraulic Fracturing and Seismic Activities Conducted by DANA GAS DANA GAS

LIST OF TABLES Table No. Page Table 2.1: The main Hydrogeological Units in Egypt 14Table 2.2: Characteristics of Nubian aquifer system of Egypt 14Table 3.1: Summary of acquired Seismic Surveys in Komombo Concession 21Table 3.2: Summary of Performed Fracking for Al Baraka Wells 28

LIST OF FIGURES Figure No. Page Figure 2.1: Google Earth Image showing Location of Komombo Concession west of Nile River 4Figure 2.2: Google Earth Image showing Location Al-Baraka Field with respect to Fares Village.

Note the Locations of Wells AB SE-1 and West AB outside the Main field Area 5Figure 2.3: Google Earth Image showing 12 wells in Al-Baraka main Field Area 6

Figure 2.4: Google Earth Image showing Area adjacent to Farms seen affected by Flooding 6Figure 2.5: Google Earth image showing Transition between Desert and Nile Valley Settings 7Figure 2.6: Google Earth Image showing Fares Village, Irrigation Canal, and Nile River 9Figure 2.7: Google Earth Image showing the Area of investigation lacking a Surface drainage/run-

off Pattern in contrast with the Area to the west where run-off Patterns are clearly visible 11

Figure 2.8: Geologic Map of Aswan Area. Yellow (Quaternary), Green (Cretaceous), Reddish (Paleocene- Eocene) 12

Figure 2.9: Time series of classified Landsat Thematic Mapper images showing major land cover types. Black star indicates approximate Al- Baraka Oil Field location 12

Figure 2.10:Shaded relief Map (SRTM DEM) showing main fault Trends (NW-SE and N-S) possibly controlling Groundwater flow in El-Gallaba Plain where Al-Baraka Field Lies. Source: Knoch et al. 2012 13

Figure 2.11:The aquifer systems of Egypt 14Figure 2.12:Stratigraphic Column of Cretaceous & Jurassic Successions in West Komombo Area 15Figure 2.13:Al-Baraka -2 Well pre-drill Prognosis. Note well Lithology is Shale-Dominated (Green

Intervals), especially above the production Zones 16Figure 2.14:Structure Contour depth Map of Top Abu Ballas Pay. Contour Interval every 20 Meters 17Figure 2.15:Top Six Hills "E" depth Map 17Figure 2.16:Top Six Hills "F" depth Map 18Figure 3.1: Layout map of 2D seismic Lines acquired over Komombo Block completed Jan. 2006 21Figure 3.2: Google Earth Image showing Komombo seismic Survey "B" 2D Lines 22Figure 3.3: Satellite Image showing Komombo Seismic Survey "B" 2D Lines 22Figure 3.4: Google Earth Image of the 3D Seismic Survey 23Figure 3.5: Elevation contour Map of the 3D survey area. Color bar Assumed in Meters. Source:

Westerngeco final Operations Report 24Figure 3.6: Google Earth Image. Source: WesternGeco Final Operations Report 25Figure 3.7: Screen Shot from the Operations Report of Seismic Survey "A" on Explosives 26Figure 3.8: Zoomed-in Google Earth Image of Al-Baraka Oil field showing fracked Wells (in green).

Other Wells have not been fracked 27


Dana Gas, Komombo Concession, Egypt Page iii Investigative Study of the Hydraulic Fracturing and Seismic Activities Conducted by DANA GAS DANA GAS

Figure 3.9: Main Field Wells. Red Circles represent Fracked Areas around wellbore within Production Horizons 29

LIST OF PHOTOS

Photo No. Page Photo 2.1: Road from Komombo showing gradual Slope toward Nile Valley. Looking East 8Photo 2.2: River Nile borders Fares Village from the East. Looking North 8Photo 2.3: Irrigation Canal crossing Farms of Fares Village 9Photo 2.4: Cultivations in Southern Part of Fares Village 10Photo 2.5: Field photo vicinity of Al-Baraka Oil Field. Note flat arid Terrain and Coarse Granular

ground Surface 10Photo 2.6: Terrain close to AB SE-1 well. Note similarity to Photo 2.5 11Photo 3.1: Field Image of the Terrain around Al Baraka Field 19Photo 3.2: Field Image of the Terrain around Al Baraka Field 20Photo 3.3: Lined Evaporation Pond of Al-Baraka Field 20Photo 3.4: Field Photo showing Terrain of Seismic Survey "B" (line 18&19) 23Photo 3.5: Field Photo showing Terrain of Seismic Survey "B" (line 18&19) 25Photo 3.6: Field Photo showing Terrain of Seismic Survey "B" (line 18&19) 26


a RINA company

D’APPOLONIA S.p.A. Società soggetta a direzione e coordinamento amministrativo e finanziario del socio unico RINA S.p.A. Via San Nazaro, 19 - 16145 Genova Tel. +39 010 3628148 - Fax +39 010 3621078 - www.dappolonia.it - [email protected] C.F. / P. IVA / R.I. Genova N. 03476550102 - Cap. Soc. € 520.000,00 i.v.

DANA GAS KOMOMBO CONCESSION, EGYPT

INVESTIGATIVE STUDY OF THE HYDRAULIC FRACTURING AND SEISMIC ACTIVITIES CONDUCTED BY DANA GAS

1 EXECUTIVE SUMMARY The Al-Baraka Oil Field is located in Upper Egypt north of Aswan city. The field is currently producing heavy oil from sandstone reservoirs that occur between approximately 3800 to 4000 feet beneath ground level. The aim of this independent study is to assess Dana Gas activities (including seismic exploration & hydraulic fracturing/fracking) and present technical opinions based on data analysis and field observations on the alleged relation of these activities to flooding that occurred at Fares Village.

Potential impacts to surface water discharge or drainage due to oil field related activities was evaluated. Surface features associated with Dana Gas (drill pads, roads, and an evaporation pond) would not have discharged large enough volumes of surface water, nor altered drainage patterns that could have resulted in increased drainage volumes at the village, especially in light of the long distance (at least 6 km but more commonly 12 km) between the wells and the village as well as the highly pervious coarse grained desert soil which characterizes the relatively flat ground surface in the vicinity of the wells.

Both seismic exploration and fracking activities were analyzed in detail in consideration of the claim that these activities contributed to flooding. The existence of flooded farms in Fares Village was documented by a seismic exploration contractor in 2008 prior to the commencement of the contractor’s seismic operations. The seismic exploration was the only oil field activity that was conducted in close proximity to Fares Village. There does not exist a mechanism known to the technical team by which the explosives used in the seismic survey could result in flooding - aside from destruction or significant alteration of a critical component of a drainage system (i.e. a canal) by explosives (which is not alleged to have occurred). Though fracturing of soils might be alleged to have occurred from the explosions, the soft, wet nature of the Nile sediments within the valley area would tend to absorb seismic waves, and therefore explosions would not create fractures in the soft sediments that occur at and near the ground surface.

Regarding hydraulic fracturing in the Al-Baraka field, post-fracking reports indicate that the maximum fracture length is 350 feet with fracture heights of 150-220 feet. Based on the data reviewed, there is no evidence that Project activities could have impacted the aquifer(s) above the fractured zone especially considering the occurrence of impervious shales above the producing horizon, the shallow strata penetrated by the wells are protected by multiple cemented well casings, and the considerable distance of the fracked wells from the location of flooding in Fares village. Fracking water from the wells was discharged to lined evaporation pits so as not to result in surface flow.

Field observations and interviews within Fares Village confirmed the lack of both a sewage collection system and drainage system for excess irrigation water.

In conclusion, given the information obtained and reviewed for this study, there is no evidence that Dana Gas could have either introduced more surface water to the existing


Dana Gas, Komombo Concession, Egypt Page 2 Investigative Study of the Hydraulic Fracturing and Seismic Activities Conducted by DANA GAS DANA GAS

system, or significantly altered the drainage of such surface waters. Based on the data, it can be concluded that the Dana Gas activities neither directly nor indirectly caused the alleged flooding in Fares Village.



2 INTRODUCTION This report is intended as an independent review study and assessment of oil field activities, especially hydraulic fracturing and seismic exploration, that were conducted by Dana Gas at the Komombo Concession at the Al Baraka and West Al Baraka Oil Fields near Aswan in south Egypt, between 2006 and 2012. D’Appolonia has been retained by Dana Gas to undertake this study of the above-mentioned activities, and to independently assess the alleged impact which the activities may have had on the village of Fares (Egypt) and its water system for agricultural use.

The following sections detail D’Appolonia’s professional opinion on the legitimacy of the legal claims made by the Fares Village residents and farmers that their lands were flooded due to Dana Gas’s hydraulic fracturing and seismic exploration activities.

2.1 ACTIVITIES UNDERTAKEN AND DATA SOURCES Much of the information used to perform this assessment was provided to the D’Appolonia team by Dana Gas personnel. The results presented in this report are based on:

• interviews and discussions with Dana Gas management and technical staff; • documentation provided by Dana Gas personnel prior to and during and after the site

visit.

The main documents provided by Dana Gas and utilized in the development of this report include:

• final well reports; • fracking reports; • seismic surveys final operation reports; • geology and geophysics data including:

− regional subsurface geology, − surface geology studies, − stratigraphic studies, − basin modelling reports;

• drilling, completion and workover reports

In addition, a site visit was undertaken by D’Appolonia in December 2015 which included the following:

• observing the site of Al-Baraka Field area including well sites not within the main field area;

• observing Old Fares Village (both residential and cultivated areas); • observing the area between Old Fares Village and Al-Baraka Oil Field.

2.2 PROJECT SETTING AND DESCRIPTION Dana Gas had a 50 percent working interest in the Komombo Concession, which was jointly operated with Sea Dragon Energy up until early 2014. As shown in Figure 2.1, the Komombo Concession is located in Upper Egypt, approximately 65 km north of Aswan city,



in an entirely desert environment covered by sand sheets and small dunes. Al-Baraka Oil field lies within Komombo concession as it represents a converted development lease. Current production at Al-Baraka Field is derived from 12 wells (all located in the main field area) within a total of 14 including exploration and development wells.

Information was gathered from the exploration to production phases of oil and gas activities including drilling and post-drilling stimulation applied in selected wells. Field observations were made at Al-Baraka oil field as well as Fares village and the area in between these locations.

Figure 2.1: Google Earth Image showing Location of Komombo Concession

west of Nile River

Topographically, the areas where Dana Gas activities took place are almost completely flat terrains without distinctive wadis or even drainage patterns indicating possible runoff towards the Nile River. Moreover, the ground surface in and around the area of interest is composed of coarse-grained sediments that tend to induce vertical percolation instead of surface run-off. The main oil field, where most of Al-Baraka wells were drilled, is located approximately 12 Km West of Fares village.



Figure 2.2: Google Earth Image showing Location Al-Baraka Field with

respect to Fares Village. Note the Locations of Wells AB SE-1 and West AB outside the Main field Area

Seismic data was acquired in the vicinity of the Al Baraka Field, with one survey done in 2006 and three surveys undertaken in the second half of 2008. A total of 8 wells were fracked between 2008 and 2012, 6 of which lie within the Al-Baraka main field area (Figure 2.3), with two wells (AB SE-1 and West AB) located outside of it. These two wells were fracked in 2010 and 2012, respectively. AB SE-1 is located approximately 6 km west of Fares Village, while West AB is about 9 km southwest of the main field. The two wells are not contributing to current production. In most wells, the fracked reservoir units are at depths of around 3800 feet, which is at least 0.6 kilometers below the nearest aquifer, known in this area as the Nubian aquifer.

Fares village is located immediately upslope of elongate agricultural fields that border the River Nile for a length of approximately 500 m (see Figure 2.4).The irrigation system depends completely on one canal running parallel to the River Nile from which water is pumped to farms at higher elevations, with the excess irrigation water returning to the canal overland by gravity. The three-meters wide irrigation canal runs parallel to the River Nile, cutting through the cultivations. The irrigation and drainage network is old and poorly maintained. Dwellings extend for approximately 500 meters to the west of the farmed land. The northern and southern side of Fares borders other cultivated areas of more recent development. The village lacks a sewage collection network and current practice discharges wastewater to trenches. Flooded areas appear to occur mostly in relatively narrow strips in the areas between houses and farms, with land located outside cultivated areas found to be dry.



Figure 2.3: Google Earth Image showing 12 wells in Al-Baraka

main Field Area

Figure 2.4: Google Earth Image showing Area adjacent to Farms seen

affected by Flooding



2.3 HYDROLOGIC CONDITIONS

2.3.1 Regional Setting

The surface hydrology of the investigated area can be divided into the following (see Figure 2.5):

• Nile Valley setting, where most of the agricultural activity occurs; and • Desert setting, which is where the Al Baraka Field is located.

The boundary between the two settings is the Topographic Break Zone characterized by a gentle slope toward the east (Figure 2.5 and Photo 2.1). The main features of the surface hydrology of the Nile Valley area include the Nile River and man-made irrigation canals, such as the one in Fares Village (Photos 2.2 and 2.3).

Figure 2.5: Google Earth image showing Transition between Desert and Nile

Valley Settings



Photo 2.1: Road from Komombo showing gradual Slope toward Nile Valley.

Looking East

Photo 2.2: River Nile borders Fares Village from the East. Looking North



Photo 2.3: Irrigation Canal crossing Farms of Fares Village

Figure 2.6: Google Earth Image showing Fares Village, Irrigation Canal,

and Nile River



Photo 2.4: Cultivations in Southern Part of Fares Village

In contrast to the Nile Valley setting, the desert setting of the area of West Komombo, where Dana Gas activities took place, lacks surface run-off features such as wadis or even distinctive surface drainage patterns (Photos 2.5 and 2.6). The area is nearly flat and is covered by sand and gravel. As shown in an aerial view (Figure 2.7), surface drainage patterns are visible a large distance (17.5 km) west of the Aswan-Luxor road (due to the presence of moderate slopes in that area), but no similar drainage features are seen near the oil field.

Photo 2.5: Field photo vicinity of Al-Baraka Oil Field. Note flat arid Terrain

and Coarse Granular ground Surface



Photo 2.6: Terrain close to AB SE-1 well. Note similarity to Photo 2.5

Figure 2.7: Google Earth Image showing the Area of investigation lacking a

Surface drainage/run-off Pattern in contrast with the Area to the west where run-off Patterns are clearly visible

2.4 HYDROGEOLOGICAL CONDITIONS

2.4.1 Geology and Hydrogeology

The surface geology of the investigated area is mainly characterized by Quaternary deposits, dominated by sandstone and conglomerate layers with clay interbeds (Figure 2.8). These layers are generally highly permeable. The ground surface slope is flat to fairly gentle toward the East. The Al-Baraka Field is located within the El-Gallaba Plain, which is covered by windblown sand deposits. It is bounded to the west by a Calcareous plateau and to the east by the Nile valley (Figures 2.9 & 2.10).



Figure 2.8: Geologic Map of Aswan Area. Yellow (Quaternary), Green

(Cretaceous), Reddish (Paleocene- Eocene) Source: Geologic map of Egypt – CONOCO 1978

Figure 2.9: Time series of classified Landsat Thematic Mapper images

showing major land cover types. Black star indicates approximate Al- Baraka Oil Field location



Figure 2.10: Shaded relief Map (SRTM DEM) showing main fault Trends (NW-

SE and N-S) possibly controlling Groundwater flow in El-Gallaba Plain where Al-Baraka Field Lies. Source: Knoch et al. 2012

Two principal groundwater aquifers are present in the area of interest, the Quaternary aquifer of the Nile Valley, and the Cretaceous Nubian Sandstone aquifer (Figure 2.11). The Quaternary (or Nile) aquifer consists of gravel, sand and silt deposited by the River Nile. Impermeable Pliocene clayey deposits below the Nile aquifer inhibit a hydraulic connection between this aquifer and the Nubian Sandstone aquifer.

The Nubian Sandstone Aquifer System is considered to be one of the most significant sources of potable groundwater in the world, as it is the only water resource for most of the areas sharing its valuable reserve. It extends over a vast area in Egypt, Libya, Sudan, and Chad. In Egypt, the aquifer is assigned to the Paleozoic-Mesozoic era. It occupies a large area in the Western Desert and parts of the Eastern Desert and Sinai. The deepest water-bearing horizons are generally encountered in the north, for example in the Siwa oasis, which is over 900 km to the northwest, while the shallowest are encountered in the southern portion in Kharga and the East Oweinat area. The aquifer transmissivity is generally medium to low, varying from 1,000 to 4,000 m2/day (Tables 2.1 & 2.2). Groundwater quality is generally good in the major part, except near the coastal regions and Sinai.

The Nubian Sandstone consists of alternating beds of sandstone and clay. The clay beds are laterally discontinuous and separate. The sandstone is separated into a multi-layered aquifer system, bounded below by impervious basement rocks. The Nubian Sandstone is occasionally overlain by impervious rocks and interbedded with clays. It was not identified in either the general stratigraphic column for the Komombo Concession (Figure 2.12) or the lithologic prognosis for the Al Baraka Field (Figure 2.13)



Figure 2.11: The aquifer systems of Egypt

(Source: Research Institute of GroundWater (RIGW) 1998)

Table 2.1: The main Hydrogeological Units in Egypt

Table 2.2: Characteristics of Nubian aquifer system of Egypt



The stratigraphy from surface to Basement rocks in the Komombo Concession is generally as shown in figures 2.12 and 2.13 and is dominated by clastic rocks (sandstone, siltstone, claystone and shale). From top to bottom, Dakhla Formation is predominantly shale that is underlain by Sabaya Formation. Formations below the Sabaya are the Abu Ballas, Six Hills and Komombo which were targeted and fracked in the Al-Baraka wells.

Figure 2.12: Stratigraphic Column of Cretaceous & Jurassic Successions in

West Komombo Area



Figure 2.13: Al-Baraka -2 Well pre-drill Prognosis. Note well Lithology is

Shale-Dominated (Green Intervals), especially above the production Zones

One of the characteristics of the Al-Baraka oil field is the west-northwest trending faults, which compartmentalize the field (figures 2.14, 2.15 and 2.16). This means that lateral extension of fractures created by fracking will be limited to each compartment. Hydraulically induced fractures will be limited laterally, at least in directions not parallel with the faults, and are unlikely to exceed about 200 meters in length.



Figure 2.14: Structure Contour depth Map of Top Abu Ballas Pay.

Contour Interval every 20 Meters

Figure 2.15: Top Six Hills "E" depth Map



Figure 2.16: Top Six Hills "F" depth Map

2.4.2 Project Site Hydrogeological setting

The Al-Baraka oil field lies within the extent of the Nubian aquifer (Figure 2.11), with depth to the top of the aquifer between 100 to 500 meters from the ground surface (Table 2.2).

The Nile aquifer is, of course, situated in the Nile floodplain and its Quaternary alluvium consists of a thick layer of graded sand and gravel covered by clay to silty clay. This aquifer system is renewable with the main recharge sources being seepage from the Nile and the infiltration from agricultural activities. This aquifer is present in the area of Fares village (Figure 2.11).



3 ASSESSMENT OF PROJECT ACTIVITIES Activities undertaken in the Komombo concession by Dana Gas were mainly during the exploration and production phases of the Al-Baraka project. Two and three dimensional (2D and 3D) seismic surveys and drilling of exploratory wells were key activities during the exploration phase. In the production phase, activities related to the application of reservoir stimulation techniques for tight formations such as fracking along with drilling of development wells were carried out at Al-Baraka field. Detailed description and assessment of oil field activities is covered in this section of the report.

3.1 SITE AND SURFACE FACILITY DEVELOPMENT

3.1.1 Roads and Well Pads

Access to Al-Baraka Oil Field is via the East-West asphalt-surfaced road connecting Komombo City in the east and Aswan-Luxor road in the west. The Al-Baraka Field lies north of this road and can be accessed via a dirt track (Photo 3.1). Inside the main field area there are 12 closely-spaced wells, each with its own well pad (Photo 3.2).

Photo 3.1: Field Image of the Terrain around Al Baraka Field



Photo 3.2: Field Image of the Terrain around Al Baraka Field

3.1.2 Impoundments, Pits

Within the Al-Baraka main field area there is one lined evaporation pond of approximately 30x30 meters in size. This pond receives produced water from the main field wells. During the drilling phase, each well had its own mud pit where fracking water was discharged for evaporation. Mud-pits were lined to reduce the possibility of leakage.

Photo 3.3: Lined Evaporation Pond of Al-Baraka Field



3.1.3 Other Surface Facilities

In addition to the offices and accommodation camps, oil tanks are located next to the evaporation pond. These tanks are heated to keep the heavy produced oil in a liquid state.

3.2 SEISMIC ACTIVITIES

3.2.1 Seismic Project Activities and Process Descriptions

Four seismic surveys were undertaken in the concession between 2005 and 2008 (Table 3.1). The first survey was acquired between the 4th quarter of 2005 and the 1st quarter of 2006 and consisted of 2D lines. The layout of this survey is shown on in Figure 3.1.

Table 3.1: Summary of acquired Seismic Surveys in Komombo Concession

Figure 3.1: Layout map of 2D seismic Lines acquired over Komombo Block

completed Jan. 2006



The second survey consisted of 2D lines acquired in the area named Area"B" in the western part of Komombo concession, in a relatively rough topography (Photo 3.4), approximately 60 kilometers from the Nile valley (Figures 3.2 and 3.3).

Figure 3.2: Google Earth Image showing Komombo seismic Survey "B" 2D Lines

Figure 3.3: Satellite Image showing Komombo Seismic Survey "B" 2D Lines

(Source: WesternGeco final operations report)



Photo 3.4: Field Photo showing Terrain of Seismic Survey "B" (line 18&19)


The third survey was a 3D seismic that covered an area of approximately 186 km2. The outline of the 3D seismic survey is shown in Figure 3.4. The surveyed area borders cultivated lands and Fares village on its eastern boundary and covered all the way to Aswan-Luxor highway and further west. The topography of the surveyed area ranges between 130 meters to 160 meters above sea level. Note the relatively flat, nearly featureless topography shown on Figure 3.5 that does not show the presence of wadis.

Figure 3.4: Google Earth Image of the 3D Seismic Survey



Figure 3.5: Elevation contour Map of the 3D survey area. Color bar Assumed

in Meters. Source: Westerngeco final Operations Report

The fourth survey was another set of 2D lines connecting between cultivated lands and flat sandy and gravelly terrain. Parts of the seismic survey "A" 2D lines were acquired within cultivated lands at the periphery of Fares Village. The final operations report from the contractor appointed to undertake the survey (WesternGeco) mentions that during the data acquisition "a lot of lines finishing near the River Nile were on very wet ground". This means that water could be found in the agricultural area prior to most drilling operations associated with the oil field. It is also mentions that "Explosives were used around villages and inside farms" (Figure 3.7). Details of the explosives used for this operation are shown in Figure 3.7.



Figure 3.6: Google Earth Image. Source: WesternGeco Final

Operations Report







Figure 3.7: Screen Shot from the Operations Report of Seismic Survey "A"

on Explosives

3.2.2 Evaluation of Possible Impacts of Seismic Exploration

Seismic data acquisition for hydrocarbon exploration and production activities is a well-established technology used to obtain subsurface information. In the Komombo block, seismic data were acquire over the desert area as well as around the peripheries of Fares village. Some 2D lines were shot inside farms submerged with irrigation water prior. Unless a feature such as a canal were destroyed or significantly altered by an activity associated with the the seismic exploration (which is not alleged to have happened), there does not



appear to be a mechanism or process by which the seismic exploration, including the use of explosive charges or vibrator trucks, could cause the observed flooding in Fares village due to the following:

1. Seismic data operations are on surface and short-term; 2. The Nile valley sediments are predominantly poorly drained silts and clays. These

sediments would respond to surface vibrations, such as those generated by the explosives or other seismic signal sources, in a ductile manner rather than by fracturing;

3. Farms were observed with standing water before the start of seismic operations.

3.3 DRILLING AND HYDRAULIC FRACTURING

3.3.1 Drilling and Fracking Activities and Description

Hydraulic fracturing (fracking) was conducted at eight wells in an attempt to increase production in the Al-Baraka Field. Six of the fracked wells were located in the main field area (see Figure 3.8).

Figure 3.8: Zoomed-in Google Earth Image of Al-Baraka Oil field showing

fracked Wells (in green). Other Wells have not been fracked

Below is a presentation of the fracking results for each well, as reported by the fracking contractor.

• AB-1 Well

In May 2007, Al Baraka-1 (Komombo-4) was drilled to a total depth of 8,712 ft. First fracking activities dated back to 2008 for two intervals within the Abu Ballas Formation. Post-frac analysis indicates a fracture half-length of 316 ft and a fracture height of 146 ft.



• AB-2 Well

In May 2008, Al Baraka-2 was drilled to a total depth of 4,310 ft as an appraisal well to Al Baraka-1.

• AB-3-Well

In September 2009, Al Baraka-3 was drilled to a total depth of 4,520 ft. This well was fracked in 2009 and 2011 for the same interval in the Abu Ballas Formation. The 2011 frac job by Schlumberger reported a half-length of 310 ft and a height of 204 ft.

• AB-6-Well

In May 2010, Al Baraka-6X was drilled to a total depth of 4,700 ft. Fracture half-length and height in this well was 348 ft and 143 ft, respectively.

• AB-7-Well

In July 2010, Al Baraka-7 was drilled to a total depth of 5,113 ft and fracked in December of the same year. Frac half-length is 309 ft and height is 213 ft.

• AB-11-Well

In November 2010, Al Baraka-11 was drilled to a total depth of 5,299 ft. in Six Hills "E". Frac half-length is 255 ft and height is 151 ft.

• AB-SE-1 Well

In September 2010, Al Baraka-SE-1X was drilled to a total depth of 8,750 ft as an Exploratory Well inside the Al Baraka Development Lease to explore the whole geological column down to the basement. Frac half-length is 350 ft and height is 219 ft.

• West AB Well

In March-30, West Al Baraka-2 was drilled to a total depth of 4069 ft. Frac half-length is 301 ft. and height is 153 ft.

Table 3.2: Summary of Performed Fracking for Al Baraka Wells

From the details above, the fracture half-length reached a maximum of 348 ft. in the main field area and 350 ft. in AB-SE-1 well. These values can be described as extremely local to the field area.



Figure 3.9: Main Field Wells. Red Circles represent Fracked Areas around

wellbore within Production Horizons

3.3.2 Data Analysis

Hydraulic fracturing of tight reservoir is a frequently used stimulation method to increase production. Applied fracking in Komombo concession is no different from conventional fracking. Fracking jobs were designed for sandstones of Abu Ballas, Six Hills, and Komombo Formations. Post-frac reports reveal that fractures were limited in their extent around the wellbore within the productive horizons.

3.4 FIELD OBSERVATIONS The surface slope at the Komombo area west of Fares village is relatively gentle to almost flat desert with no indications that the oil and gas activities have altered general topography. The footprint of Al-Baraka oil field facilities is insignificant in area compared to the entire drainage area upslope of Fares Village. The chance for surface flow from the oil field toward the valley is highly unlikely due the lack of slope and the presence of highly pervious gravelly and sandy soils. Additionally, contributions of surface water from oil field related activities would not be of a volume large enough to increase flow volume at the Village.

Agricultural areas in Fares Village are spread over the area next to Nile River, with the residential area on higher ground to the west. Flooding of houses and farms were observed in the village, especially along the border between the village and the farmland. It is important to mention that no flooding was recorded or observed further to west of this area, which would be closer to Dana Gas activities.



4 CONCLUSIONS AND FINDINGS Al- Baraka Oil Field is located in Upper Egypt north of Aswan city. The field is currently producing heavy oil from sandstone reservoirs about 3800 to 4000 feet below the surface. The aim of this independent study is to assess Dana Gas activities (seismic & hydraulic fracturing) in consideration of the alleged link between these activities and flooding within Fares Village, which is some 12 km distance from the main oil field. D’Appolonia has reviewed the information and data provided by Dana Gas and has drawn the following conclusions.

Topographically, Fares village lies down-slope from the Al-Baraka field. This slope is extremely gentle proceeding west about 2 to 3 km from the Nile, through the agricultural lands and the village until a mile slope break that levels off again to a flat desert plateau area where the Al-Barak field is located. The available maps along with field observations indicate that surface flow from the Al-Baraka field toward Fares village is highly unlikely. Moreover, the surface drainage pattern is poorly defined, as shown in Google Earth images and site photographs, which also show the coarse and pervious ground surface on the plateau. The footprint of the oil field production facilities is so localized and small as to be insignificant. Similarly, any contribution to surface flow from the oil field activities would be insignificant.

Seismic and Fracking activities were assessed by D’Appolonia as potential reasons for the alleged flooding. Seismic exploration activities were carried-out as three 2D surveys and one 3D survey with lines extending into farms in Fares Village. Flooded farms were reported by a seismic acquisition contractor prior to the commencement of seismic operations. Such operations are short-term and superficial to 1 meters depth at most, therefore its potential impact on surface or subsurface flow of water is considered to be negligible. Although explosives were used in one 2D survey, explosions would not create fractures in the soft sediments that occur at and near the ground surface. No damages, including any damages to constructed drainage facilities or canals, were reported as a result of the use of explosives.

Regarding fracking, post-fracking reports in Al-Baraka field indicate a maximum fracture half-length of 350 feet with a fracture height of 150-220 feet. The vertical distance between fracked intervals and the nearest water aquifer is significant, while aquifer units are also isolated from the well bore by casing. The design of hydraulic fracs (as outlined above), does not allow propogation to either reach the village (at a minimum distance of 6km) or the nearest aquifer; there is not sufficient hydraulic horse power to create such fracs and not enough propogant to keep them open. There are also impermeable layers of shales above the fracked intervals that diminish the possibility of upward leakage of fracking fluids. As such, there is no evidence that hydraulic fracturing at the oil wells could have had any impact on flooding in Fares village due to the distance from the wells to the village in addition to the limited fractured zones. Additionally, the data reviewed leads to the conclusion that the discharge of fracking water or drilling fluid into lined pits would not have had any impact on any distant features, especially considering the presence of highly pervious soils that would not allow relatively small volumes of surface flow to occur.

D’Appolonia also notes that field observations and interviews confirmed a lack of collection systems for either sewage or excess irrigation water, which could lead to rise in water table and result in flooding, especially in areas adjacent to agricultural fields.



In conclusion, given the information above, there is no evidence that Dana Gas could have either introduced more surface water to the existing system or significantly altered the drainage of such surface waters. Based on the data, it can be concluded that the Dana Gas activities neither directly nor indirectly caused the alleged flooding in Fares Village.

ROC/AEC/GBD:ip



REFERENCES

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CONOCO, Coral & the Egyptian General Petroleum Corporation (1987), Geological Map of South West Egypt, Scale 1:500 000.

El Tahlawi MR, Farrag A. A., Ahmed S. S.; Groundwater of Egypt: ‘‘an environmental overview’’; Environ Geol (2008) 55:639–652.

Hamdan AM; Hydrogeological and Hydrochemical Assessment of the Quaternary Aquifer South Qena City, Upper Egypt; Earth Science Research; Vol. 2, No. 2; 2013.

Said, R. (1962), The Geology of Egypt, Elsevier Publishing Company, Amsterdam - New York

Said. R. (1981). The Geological Evolution of the River Nile (p. 151). Springer - Verlag. New York Inc.

Said. R. (1990). The Geology of Egypt (p. 751). Egyptian General Hurghada Inc. and Rep. of Exploration, S. A.,Balkema, Rotterdam, Brookfield.

Shata AA; Hydrogeology of the Great Nubian Sandstone basin, Egypt; O. J. eng. Geol. London, 1982 Vol. 15, pp. 127-133.

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