ADES International Holding Plc has entered, through its subsidiary ADES SAE, into a short-term exploration contract with Dana Gas for deepwater drilling services in the Egyptian Mediterranean basin, the company said on March 8.

The service will be provided using Vantage’s Tungsten Explorer, comprising one firm well and the contract is estimated to last 77 days, with an extension option to a further three wells.

The services will be subcontracted to ADVantage, a joint venture (JV) between ADES and Vantage Drilling International, which was announced in November 2017. ADVantage utilizes ADES’ experienced local workforce and pre-qualification in the Mediterranean basin with Vantage’s Tungsten Explorer drillship as well as their extensive deepwater drilling experience.

Amid significant gas discoveries and prospective drilling programs in the region, this contract presents several attractive commercial opportunities which could be realized through an extension over the long-term.

The contract will operate on a profit-sharing basis, enabling ADES to generate additional revenue without incurring the significant capex normally associated with deepwater drilling.

“We are extremely pleased to have secured our first contract in the Mediterranean with Dana Gas, where we will build on our track record of consistently delivering a high-quality service to our clients. This contract is fully consistent with our approach, as we continue to see attractive long-term prospects for the JV and our partner Vantage’s high quality assets in the ultradeepwater Egyptian market,” Dr. Mohamed Farouk, CEO of ADES International Holding, said.