RWE Dea Egypt said a development well confirmed the extension of the North Sidi Ghazy-1x discovery in the Nile Delta, part of the Disouq concession.
The company said the well flowed at a rate of 1 million cubic feet per day during initial testing.
"I am very delighted with the recent results of this well, which will enable us to develop the entire reservoir," RWE Dea Egypt General Manager Dirk Warzecha said in a statement.
The company said production is intended for the Egyptian market. Production from the Disouq concession is expected by next year.
RWE was awarded the concession in 2004. It covers around 2,000 square miles in the Nile Delta.
This week, British energy company BP announced a similar success in the region at its Taurt North and Seth South plays.
The U.S. Energy Department's Energy Information Administration states that proven natural gas reserves in 2012 in Egypt were the third highest in Africa at around 77 trillion cubic feet.