UAE's Dana Gas receives $125M from its operations in Egypt within 9 months

CAIRO – 6 October 2021: The UAE Company, Dana Gas, announced, Wednesday, that it has received a payment of 458 million dirhams ($125 million) from its operations in Egypt.

Dana Gas indicated in a statement that it received $125 million (458 million dirhams) during the first nine months of 2021, marking an increase of 136 percent compared to $53 million (195 million dirhams) during the same period in 2020.

The company stated that the total cash received in Egypt and the Kurdistan region of Iraq during the first nine months of 2021 amounted to $256 million (938 million dirhams); this represents an increase of 102 percent year-on-year, compared to $127 million (466 million dirhams) during the same period last year.

According to the statement, the share of "Dana Gas", which owns a 35 percent stake in Pearl Petroleum, in the cash payments received from sales of condensate, liquefied petroleum gas and gas in the Kurdistan region of Iraq by 77 percent to $ 131 million (480 million dirhams) during the first nine months of 2021, compared to $74 million (271 million dirhams) during the same period last year.

In April 2021, Dana Gas said that IPR Wastani Petroleum Limited, the counterparty to the sale agreement for its onshore assets, had submitted a request for arbitration in which it disputed the right of Dana Gas Egypt to cancel the sale agreement.

The company explained in a previous statement to the Abu Dhabi Securities Exchange, Wednesday, the correctness of its legal position and its right to terminate the sale and purchase agreement, noting that it will defend itself in the arbitration procedures.

Dana Gas started on May 20, 2019 drilling work in the “Merak-1” well in Egypt at a depth of 755 meters in the North El-Arish concession area, also known as the Sixth Block located within the Eastern Mediterranean Basin, which has witnessed over the past years huge and world-class discoveries. .

The Company turned into profitability by the end of the first half of 2021, reaching 504 million dirhams, compared to recording losses of 69 million dirhams during the same period in 2020.

It attributed the company’s turn to profitability to an increase in revenues by 19 percent compared to the same period in the previous year, and an increase in the profit margin to 42.2 percent, compared to 21.7 percent during the first half of 2020; As a result of higher revenues and lower costs.