Dana Gas, confirming a report from the Egyptian government, said the deal covers 1,200 square miles. It said a four-year campaign in the area would begin with seismic surveys and exploration wells to get a better understanding of the potential reserves.
"We consider this block to be highly prospective and it forms an important part of Dana Gas' growth portfolio," Patrick Allman-Ward, the company's chief executive officer, said in a statement Tuesday.
"Dana Gas remains fully committed to developing the natural gas industry in Egypt, and we are extremely optimistic about the future," he said.
The project will be Dana's first offshore in Egypt.
Dana said it secured a lease onshore in the same region, its 13th onshore lease in the country. That area, the company said, can be brought onstream "very rapidly" given its network of pipelines and processing facilities in the region.