Egypt pays $40M to Dana Gas

CAIRO – 28 May 2018: The UAE-based Dana Gas (DANA) announced the receipt of $40 million from the Egyptian government as a part of the company’s receivables, upgrading the total paid amount to $88.8 million during 2018.

“We are pleased to have received this $40 million payment from the Egyptian government which takes our total receipts to nearly $90 million for the first half of the year. It is a timely cash boost and highlights the government’s publicly stated commitment to substantially reduce the petroleum companies’ receivables during 2018,” CEO of Dana Gas Patrick Allman-Ward said.

“The monies will enable us to proceed with important growth initiatives such as drilling Balsam-8 in our Development Lease onshore the Nile Delta, which should provide incremental production to fill our onshore facilities to its capacity,” the CEO added.

He stated that the company’s primary focus remains on increasing production and on drilling the first offshore well in Block 6, due to commence in early 2019, adding that Block-6 is highly prospective and contains several material prospects with multi-Tcf potential.
In February 11, Dana Gas announced that Egypt paid $164 million to the company, which represents 129 percent of the total billings, adding that the total receivable balance fell 14 percent to $228 million from $265 million.

In May 2017, Dana gas announced that it received the repayment of a debt tranche worth $50 million from the Egyptian government.

The company announced that its net profit for 2017 reached $83 million, compared to net loss of $88 million in 2016.

The UAE’s Sharjah-based Dana Gas entered the Egyptian market in 2007; its production reached 36,800 barrels of oil equivalent (boepd) in the first quarter of 2018.

It has title to 14 development leases, three exploration concessions and two processing plants. Its 2P reserves (as of YE 2017) stand at 117 million barrels of oil equivalent (mmboe).