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El Basant-2 well boosts company reserves and production potential for 2009

Sharjah – 29 December 2008

Dana Gas, the Middle East’s first and largest regional private sector natural gas company, has announced a significant gas and condensate discovery at its El Basant-2 well in the Nile Delta Concession in Egypt.

The El Basant-2 well, located 1.4 kilometres northeast of the El Basant-1 discovery (previously known as El Tawil-1) in the West El Manzala Concession, was spudded on 6 December 2008, reaching a total depth of 3,050 meters and encountered 37 metres of net sand pay with good porosity and permeability in the Qawasim formation.

According to Dr Hany Elsharkawi, Dana Gas country director in Egypt, the cumulative proven and probable reserves in the El Basant hydrocarbon accumulation significantly raises Dana Gas’s reserves in Egypt:

“We are very pleased and encouraged by this latest discovery. Combined with Dana Gas’s other discoveries this year, it shows that our 2008 drilling campaign was correctly conceived and implemented and therefore on the basis of this success we plan to continue with further drilling in this concession, where several prospects of similar nature have been identified,” said Dr Elsharkawi. “This acreage is particularly attractive to us as we have established production in the area and we are able to bring new discoveries on production quickly and at comparatively low cost. In addition our gas is sold at a fixed price, provided the oil price stays above $22/bbl. Dana Gas has already applied for a Development Lease, which we expect to be granted soon, and we anticipate a production start-up by the end of March 2009.”

Following an extensive testing programme at El Basant-2, Dana Gas plans to transport the hydrocarbons produced from the well through a pipeline to its El Wastani field facilities, which lie about ten kilometres to the north of the well.

Dana Gas is currently the sixth highest natural gas producer in Egypt, and has already made a number of discoveries in the country, including the first commercial oil discovery ever made in Southern Egypt. Dana Gas also has ongoing projects and assets in both the UAE and Northern Iraq, where the Company commenced gas production this past October in its major project in the Kurdistan Region, boosting Dana Gas operated production by over 50%. The company also successfully completed a US$1 billion sukuk offering in late 2007.

“Dana Gas ends 2008 with solid growth in production and activities and a positive outlook for the coming year, despite the global financial crisis,” said Mr. Neeraj Agrawal, Dana Gas Finance Director. “Having completed our major fund-raising in late 2007, we are in a healthy cash position to fund project investments, and even the latest fall in global oil prices has not impacted us too badly, given that nearly 70 percent of our current Egypt revenues come from gas sales at fixed prices. The fundamentals of the natural gas industry in the Middle East region remain strong, since it is a core long-term sector in the region’s growth.​

Company celebrates third anniversary with tour of Egyptian operations

Sharjah – November 17, 2008

Dana Gas PJSC, the Middle East’s first and largest regional private-sector natural gas company, announced that its board of directors has approved a five-year growth plan for the company on the heels of new discoveries in its Egyptian concessions, and a 50 per cent increase in operated gas production in Egypt and the Kurdistan region of Iraq.

The announcement came at the end of a tour of Dana Gas Egypt’s operations by the company’s directors and senior management last week, during which they visited the El Wastani gas field and integrated gas plant at Damietta, in the Nile Delta region of Egypt.

The El Wastani plant, which consists of a manifold area for gas collection, a primary separation phase to separate gas and condensate, and a third phase for gas processing, condensate stabilisation and Liquefied Petroleum Gas (LPG) recovery, is currently processing 150 million standard cubic feet (mmscfd) of gas, over 3500 barrels of condensate, and around 1900 barrels of LPG per day.

Rashid Al Jarwan, General Manager of Dana Gas, said the visit made by the directors and management to Egypt put into context the company’s ambitious five-year plan, which includes a combination of carefully targeted investments spanning acquisitions and internal growth through exploration, development and increased production.

“This visit allowed our directors to witness the quality and scale of Dana Gas’ achievements in Egypt. This year, Dana Gas has succeeded in delivering new reserves in Egypt, initiating first gas from our projects in the Kurdistan region of Iraq, and laying the groundwork for new exploration and development in Egypt and the UAE,” said Mr Al Jarwan.

Ahmed Al Arbeed, Dana Gas Executive Director of Upstream, discussed the company’s successes in 2008 and the potential for numerous discoveries in 2009 across its Egyptian concessions.

“We hope to build on the achievements of Dana Gas in the coming year with more upstream activity, including additional exploration and production from our concessions,” said Mr Al Arbeed.

Dana Gas posted AED 901 million for the first nine months of 2008, with a 20% increase in gross profit and an 18% increase in net profit over the same period last year. Earlier this month, the company had announced that gross operated gas production from operations in Egypt and the Kurdistan Region of Iraq had increased by over 50 per cent, reaching 220 million standard cubic feet per day (mmscfd), or in excess of 40,000 barrels of oil equivalent (boe) per day.

Coupled with a projected increase in total gas production reaching 300 mmscfd from the Kurdistan region of Iraq in 2009 – a 200 per cent increase on the company’s current operated production in Egypt – Dana Gas is gearing up for a year of new milestones and achievements to cement its position as a leading regional player in the natural gas industry.

In October, Dana Gas also announced a significant gas discovery at Al Tawil in the Nile Delta in Egypt which was production tested at a rate of about 25 mmscfd of gas and over 1,000 barrels of condensate per day (totalling approximately 5,000 boe per day). This discovery is particularly important as the well produced condensate at higher levels than existing producing wells and so will add materially to the company’s overall liquid production in Egypt. Dana Gas is also moving forward with its plans to develop the Western Offshore concession in Emirate of Sharjah which includes the development of the Zora Gas field in the coming year.​

Quarterly Revenue rises to AED 320 million, 16% increase over same period last year

Quarterly Gross Profit increases by 20% over same period last year

Quarterly EBITDA increases by 32% over same period last year

Sharjah – November 15, 2008

Dana Gas PJSC, the Middle East’s largest regional private sector natural gas company, has announced quarterly results to September 30, 2008, posting revenue from oil and gas production of AED 320 million, a 16 per cent increase over the same period last year.

Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) reflecting cash flows from operations for the third quarter of 2008 increased by 32 per cent to AED 145 million compared to AED 110 million in the same period last year. Net profit for the quarter was AED 26 million as compared to AED 22 million in the same period last year, an increase of 18 percent after finance charges of AED 65 million, non-cash depreciation and depletion of AED 73 million and income tax expense of AED 39 million during the quarter. Total assets as of 30 September 2008 stood at AED 10.8 billion.

Dana Gas’ oil and gas production in Egypt ended the quarter with a production of 2.57 million barrels of oil equivalent (boe) and contributed higher revenues due to better realizations of LPG and condensates.

The Company generated total revenue of AED 901 million for the nine-month period ended 30 September 2008, with a gross profit of AED 200 million, net profit of AED 85 million and EBITDA for the first nine months was at AED 451 million, an increase of 50 percent over the same period last year.

Commenting on the nine months’ results Mr Hamid Dhiya Jafar, Executive Chairman of Dana Gas said, “The current period of growth has been of great significance to Dana Gas with production start up from its Kurdistan Gas Project, combined with an important discovery in Egypt. The first phase of the Kurdistan Gas Project has been completed in a record time of 15 months with installation of an Early Production Facility (EPF) and a 180 kilometre pipeline to transport our produced gas to a newly constructed power plant at Erbil. The gross operated gas production from operations in Egypt and Kurdistan Region of Iraq has now reached 220 million standard cubic feet per day (mmscfd), totaling more than 40,000 barrels of oil equivalent (boe) per day.

“We now look forward to completing installation of the additional processing facilities in order to increase the production in Northern Iraq to 150 mmscfd early next year and then to 300 mmscfd later in 2009. Work is also progressing in Egypt to obtain Government approvals to bring our new gas discovery in Egypt, Al-Tawil, on stream in early 2009. In addition, in the UAE we are moving ahead with plans for exploration and development of the Western Offshore concession in Emirate of Sharjah which includes the development of the Zora Gas field by mid 2009,” added Mr Jafar.

Neeraj Agrawal, Dana Gas Finance Director, elaborated on the Company’s financial results, saying, “Dana Gas has not been negatively impacted by the recent global financial crisis as it has maintained a good level of liquidity and has cash reserves and positive cash flows to support the ongoing project and drilling expenditures.

“As of 30 September our cash and bank balance stood at AED 1.18 billion and during the nine months ended the Company generated EBITDA of AED 451 million,” he added.

In the Kurdistan Region of Iraq, Dana Gas was able to complete the 180 km gas pipeline in late September. The initial processing facilities were successfully installed with gas deliveries to the Erbil Power Station commencing on 1 October via the 180 km pipeline.

In Egypt, Dana Gas recently announced a significant gas discovery at Al Tawil in the Nile Delta in Egypt; the well was tested at a rate of 23.5 mmscfd of gas and 1,027 barrels of condensate per day (totaling approximately 5,000 boe per day). This discovery is particularly important as the well produced condensate at higher levels than existing producing wells and so will add materially to the Company’s overall liquid production.

The UAE Gas Project to process and transport imported gas is now in its final stages of completion. The construction and interconnection of the Company’s facilities in the UAE had been successfully completed in 2005 and awaits the commencement of gas supplies. The ultimate supplier of gas, NIOC, has completed the installation of all the main components of the required upstream facilities and is in final commissioning stages.​

Project commencement and new discoveries creating solid platform for further growth

Sharjah – November 4, 2008

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, has today announced that its aggressive growth strategy, driven by a capital investment programme approaching $500 million, is delivering strong results. The gross operated gas production from operations in Egypt and the Kurdistan Region of Iraq has reached 220 million standard cubic feet per day (mmscfd), totalling more than 40,000 barrels of oil equivalent (boe) per day, an increase of over 50 per cent.

Commencement of production from a 75mmscfd early production facility began earlier last month in the Kurdistan Region of Iraq. Total gas production is expected to increase to 150mmscfd early next year, eventually reaching 300mmscfd in 2009, leading to a 200% increase on the Company’s current operated production in Egypt.

Earlier this month, Dana Gas announced a significant gas discovery at Al Tawil in the Nile Delta in Egypt which was production tested at a rate of 23.5 mmscfd of gas and 1,027 barrels of condensate per day (totalling approximately 5,000 boe per day). This discovery is particularly important as the well produced condensate at higher levels than existing producing wells and so will add materially to the Company’s overall liquid production in Egypt.

In the UAE, Dana Gas is moving ahead with plans for exploration and development of the Western Offshore concession in the Emirate of Sharjah, as part of a 25-year agreement with the Government of Sharjah. The concession agreement covers a total offshore area of over 1,000 square kilometres, and includes the development of the offshore Zora gas field in Sharjah by mid-2009.

The work programme will include the completion of horizontal drilling of two wells originally drilled by Crescent Petroleum, the installation of offshore platforms for immediate processing and production, and the transportation of the processed gas via 25km of offshore pipeline to be installed by Dana Gas.

Dana Gas General Manager Rashid Al Jarwan expressed pride in the significant achievements of the Dana Gas team:
“We have delivered first gas in our project in the Kurdistan Region of Iraq just 15 months after commencement of operations there, and our production in Egypt is set for growth following the successful Al Tawil discovery, with the addition of UAE operations by next year,” said Mr. Al Jarwan. “The fundamentals of the natural gas business in our Middle East region remain very robust, with over 40% of the world’s reserves and fast-growing local demand as well, and Dana Gas is uniquely positioned to create value across the upstream, midstream and downstream gas sectors.”

Neeraj Agrawal, Chief Financial Officer of Dana Gas said that recent accomplishments by the company were indicative of its ability to deliver real and long-lasting shareholder value, particularly in the face of current challenges to financial markets.

“The business fundamentals of Dana Gas projects remain solid, in spite of the uncertainty which has cast a shadow over global financial markets lately,” said Mr Agrawal. “We continually monitor our capital investment plans to ensure that we remain in a position to invest in profitable projects whilst taking advantage of any market opportunities that may arise.”

Mr Agrawal further pointed out that Dana Gas raised its US$1 billion convertible Sukuk in October 2007 at a fixed profit rate with the Shari’a-compliant bond, leaving Dana Gas with a strong cash base for its operations, and that the Company had not suffered negatively from the recent global financial crisis. He also noted that the Company was protected from the recent fall in international oil prices as its revenues from gas sales were on fixed price long-term contracts.​

New “Al Tawil-1” well yields third 2008 discovery. Dana Gas sees positive results from US$ 170 million campaign

Sharjah – October 15, 2008

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, has announced a gas and condensate discovery in its Egyptian concessions, marking the third discovery in the company’s US$ 170 million drilling campaign for 2008.

The “Al Tawil-1” exploratory well commenced drilling on September 5, 2008 and reached a total measured depth of 3163 meters in the Qawasim formation. The well is located in the West Manzala concession, approximately 15 km south of Dana Gas’s El Wastani gas processing facilities.

The Al Tawil-1 well encountered 34 meters of net hydrocarbon pay in the Qawasim sandstone reservoirs with excellent porosity and permeability. Upon testing, the well flowed at a daily rate of 23.5 million standard cubic feet of gas and 1027 barrels of condensate (totaling approximately 5000 barrels of oil equivalent ”boe” per day). The added recoverable reserves, resulting from the successful drilling of the well, are currently estimated at 90 billion cubic feet of gas (16 million boe), in addition to 4 million barrels of associated condensate, which represent an increase of 20% to the current reserves of Dana Gas in Egypt. Plans are underway to determine the optimum development scheme for the new discovery. Additional exploratory wells targeting similar objectives will be drilled in the West Manzala and the West Qantara concessions in 2008 and 2009.

Ahmed Rashid Al Arbeed, Executive Director of Upstream at Dana Gas, commented on the new Al Tawil-1 well by saying, “This is an important discovery which proves the high potential of the Qawasim formation resulting in significant reserves addition to the company. The exploration program in Egypt has been very successful so far, and we are looking forward to more discoveries before the year’s end.”

Mr. Al Arbeed added, “We are very excited about the results in Al Tawil-1, as they significantly enhance the economics of the ongoing drilling project. Additional seismic interpretation and drilling activities are being planned for the remainder of 2008 and throughout 2009 to increase the proven reserves and production rates as part of the exploration and development plans for the area.”

Meanwhile, Dr Hany Elsharkawi, Dana Gas Egypt Country Director, said that
Dana Gas had recently completed a successful well workover program in the Kom Ombo concession in Upper Egypt. “A hydraulic fracturing of the Al Baraka-1 well and additional perforations in the Al Baraka-2 appraisal well have resulted in a significant increase in the production rates of Al Baraka oil field,” he explained.

Dr. Elsharkawi noted that Dana Gas was the first and only oil producer in Upper Egypt, and expressed his expectations of a positive impact on the local community as a result of the company’s success in the area.

Dana Gas is the sixth highest natural gas producer operating in Egypt today. A report by the Middle East Economic Survey (MEES) confirmed that Dana Gas was the only private company from the region to make new Middle East oil and gas discoveries in 2007. The new Al Tawil-1 well is part of an aggressive drilling project announced by Dana Gas earlier this year, covering 15 exploration wells and four development wells.

Dana Gas is currently also leading a consortium to build and operate the Gulf of Suez Gas LPG Plant, in partnership with the Egyptian Natural Gas Holding Company (EGAS) and the Arab Petroleum Investment Corporation (APICORP).​

180km pipeline to meet local power needs implemented in record time US$650 million investment the largest private-sector project in Iraq today

Sharjah – October 4, 2008

Dana Gas PJSC, the Middle East’s first regional private-sector natural gas company, and its partner Crescent Petroleum, the Middle East’s oldest private oil and gas company, have today announced the start-up of natural gas production, processing and transportation by pipeline in their major joint project in the Kurdistan Region of Iraq.

Dana Gas and Crescent Petroleum are 50:50 partners on the project, and are investing US$650 million under a Strategic Alliance and service contracts signed with the Kurdistan Regional Government (KRG) in April 2007, making it the largest private-sector investment in Iraq today and the largest private-sector oil & gas project in Iraq in several decades. The gas will supply new power plants under construction near Erbil and Sulaimaniya, which will provide eventually 1,250 MW of urgently needed electricity for over 4 million Iraqi citizens. This will provide Iraq with savings of approximately $2.5 billion a year in liquid fuel import costs.

As part of the project implementation, the primary phase completed in a record time of 15 months, the companies have installed a 180km gas pipeline across challenging mountainous terrain that sometimes required the clearing of minefields. In addition, upstream activities on seismic surveys and production wells were carried out, and brand new gas processing facilities were installed. The initial primary phase gas production is at 75 million cubic feet per day, and will rise in stages to 300 million cubic feet per day within the first half of 2009, as the power plants become fully operational. Dana Gas and Crescent Petroleum will be adding further processing capacity to handle the additional gas quantities.

In total, over 50,000 tonnes of equipment were imported in over 2,300 truck-loads, and over two thousand Iraqi workers from all ethnic groups and sects worked together in implementing the project, supported by expatriate workers from over 20 nationalities in the region and worldwide. The pipe material was supplied from China and Thailand, and the state-of-the-art gas processing plant was imported from the USA. Local private companies with Turkish partners were used as contractors in order to maximize local content and develop local experience and expertise.

In addition to their investment and work on the project, Dana Gas and Crescent Petroleum partnered with local charitable foundations to invest in community projects and development, including providing school supplies, drinking water treatment, electrical generators for distant villages, fuel for generators, mobile medical units, and youth sports facilities, as part of the Companies’ corporate social responsibility programme.

Commenting on the achievement, Mr. Ahmed Al-Arbeed, Upstream Executive Director for Dana Gas, said: “We are very proud of this historical milestone, as the first companies from the Middle East to invest in Iraq’s oil and gas sector. We wish to thank the leadership and cooperation shown by the KRG, and also all of our staff, our contractors, and local officials for their support in this remarkable joint effort.”

“This is the first project of its kind in Iraq, and it will provide important economic and social benefits for the Kurdistan region and all of Iraq”, added Mr. Majid Jafar, Executive Director Crescent Petroleum. “We aim to now build on these achievements in the Kurdistan Region and across Iraq, with our strategic focus on maximizing economic benefit and addressing local needs.”

In parallel with supplying the local power plants, Dana Gas and Crescent Petroleum are also in discussion with the the Ministry of Natural Resources in the Kurdistan Regional Government of Iraq to review the natural gas resources in the Kurdistan Region of Iraq for its optimal development and utilization. To this end, the companies continue to assist the Ministry of Natural Resources to create a broad investment framework to develop the “Kurdistan Gas City” project – a major gas-utilization industrial complex to promote investment in a variety of gas-related industries to maximize local economic benefit and job creation. The investment framework shall encourage local private sector involvement and to attract investments by regional and international companies, which Dana Gas and Crescent intend to participate in.

About Dana Gas
Dana Gas (PJSC) is the first regional private-sector natural gas company in the Middle East, established with over 300 reputable founder shareholders from across the Gulf Cooperation Council (GCC) region, and some 300,000 investors from over 100 nationalities worldwide who submitted applications of over US$78 billion over ten days in the company’s regional IPO in late 2005. Headquartered in Sharjah in the UAE and listed on the Abu Dhabi Stock Market (ADSM), Dana Gas already possesses a network of offices in Saudi Arabia, Egypt, the UK, and Iraq, with further offices opening throughout the Middle East. Dana Gas currently has assets and projects in gas exploration and production, processing, transportation and marketing in the UAE, Egypt and Iraq, and aims to play a major role in the rapidly-growing natural gas business throughout the Middle East North Africa and South Asia (MENASA) Region across the entire gas value chain. In addition to its current projects, Dana Gas will be expanding its activities in all elements of the natural gas value-chain, including upstream exploration and production; through the midstream transmission and distribution of gas including LNG trading; and downstream into gas-related industries and petrochemicals. www.danagas.ae

About Crescent Petroleum
Crescent Petroleum is the oldest private exploration and production company in the Middle East, with over 35 years of experience as an international operator in numerous countries including Egypt, Pakistan, Yemen, Canada, Yugoslavia, Tunisia, Argentina, in addition to its continuing local operations in the United Arab Emirates. Headquartered in Sharjah in the UAE, Crescent Petroleum has international offices in the UK, Iran, and three locations across Iraq, as well as affiliated offices in Egypt, Canada, Saudi Arabia, and Bahrain. Crescent Petroleum is also the largest shareholder in Dana Gas, the Middle East‘s first and largest regional private-sector natural gas company. www.crescent.ae

For more information, please contact:
Wajih Halawa/ Maryam Keblawi
SAHARA Communications
Contact : +971-4-329 8996 / +971-50-240 3357
Email Id : wajih@saharagcc.com​

Chairman confirms commitment to Islamic values

Sharjah, 24 September 2008

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, has confirmed that it has been approved by the Shariah board of Standard & Poor’s, and has achieved the required ratios for inclusion in the S&P Pan Arab Shariah Index and the S&P GCC Shariah Index.

Demand for Shariah-compliant products across all sectors has been increasing steadily over the past few years, and the financial markets are no exception. In 2006, in response to this growing demand and the urgent need for indices, Standard & Poor’s introduced the S&P Shariah Indices. Ratings Intelligence Partners (RI), a London/Kuwait-based consulting company specializing in solutions for the global Islamic investment market, provides the Shariah screens used and its team of qualified Islamic researchers work directly with a Shariah Supervisory Board to filter the stocks based on these screens.

Commenting on Dana Gas’s inclusion in the indices, Dana Gas Executive Chairman Hamid Jafar said, “We are delighted to have Dana Gas approved for inclusion in the S&P Pan Arab Shariah Index and the S&P GCC Shariah Index, as this indisputably establishes our Islamic credentials, and underlines our commitment to our investors and stakeholders to conduct all of our business in a Shariah-compliant manner.”

The S&P Pan Arab Shariah Index includes stocks from listed companies in Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Tunisia and the UAE, with the underlying country indices being part of the S&P/IFCG emerging market indices. The S&P/IFCI GCC Indices six Shariah-compliant country indices (one for each of the GCC countries), a composite S&P/IFCI GCC Shariah Index that excludes Saudi Arabia, and a composite S&P/IFCG GCC Shariah Index that includes Saudi Arabia.

Earlier this year, Dana Gas announced that it had achieved AED 581 million revenues in the first half of 2008. This inclusion in the S&P Shariah Indices shows that even though it is currently undergoing rapid expansion, Dana Gas remains committed to upholding the highest Shariah standards in all of its business dealings. The company’s well-publicised convertible sukuk offering in late 2007 was upsized twice to US$1 billion due to strong investor demand, both regionally and internationally.

The S&P Shariah Indices comprise leading equity indices that have been screened for Shariah compliance as per the standards observed by several Middle Eastern countries. All the indices are liquid and investable, and are periodically re-examined to ensure that they maintain their Shariah-compliant status. With the completion of the review of the S&P/Citigroup Global Broad Market Index (BMI), which consists of over 11,000 companies worldwide, for Shariah compliance in 2008, the Standard & Poor’s series of Shariah indices became the most comprehensive in the industry, with the resultant S&P BMI Global Shariah index comprising nearly 6,000 constituents, along with 10 sector, and 52 country and regional sub-indices.​

ACQ magazine commends regional firm on growth and achievements

Sharjah – September 21, 2008

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, has been designated “UAE Company of the Year” as part of ACQ Magazine’s First Annual Country Awards for Achievement.

The award comes in recognition of Dana Gas’ aggressive growth strategy, which came to light following its acquisition of Centurion Energy at the beginning of 2007, and the company’s subsequent expansion into the upstream gas sector with its projects in the Kurdistan region of Iraq.

Dana Gas General Manager Rashid Al Jarwan said this award was a testament to the achievements of Dana Gas in a period of less than two years of operations.

“We thank ACQ magazine for its recognition of Dana Gas’ achievements and its rapid progress since the company acquired Centurion Energy – now Dana Gas Egypt – and the many opportunities that this deal created for Dana Gas,” Al Jarwan said. “It is a clear indication that experts and industry observers alike have seen the impact of such a strategic opportunity on the company’s direction, and the ability of the directors and the management to fortify the unique position of Dana Gas as a company from the region, by the region and for the region.”

ACQ magazine’s Editor, Charlotte Abbott, explained the mechanism behind the selection criteria for the awards.

“We submitted the categories to an independent panel and to other companies that have contributed to the magazine in past editions,” said Charlotte. “They voted on those deals that the magazine has reported on, choosing those which they believed stood out from the crowd in the last 12 months.”

ACQ magazine is a specialized business publication that focuses on news of major deals, launches and partnerships, new financing options, innovative legal structures, region-specific reviews, and other topics related to the world of mergers and acquisitions (M&A). Its readership of approximately 20,000 comprises Europe’s leading corporate finance professionals.

Dana Gas currently has operations in the UAE, Egypt and Iraq, with investments exceeding US$500 million across the region in 2008. In addition to its existing and upcoming UAE projects, and its current oil and gas operations in the Nile Delta and Upper Egypt, the company is undertaking an aggressive US$170 million drilling campaign in Egypt. Dana Gas has also achieved over 90% completion on its joint venture project with Crescent Petroleum to produce and transport natural gas from the Khor Mor field in the Kurdistan region of Iraq, and was recently awarded a 461 million square foot site to develop the Kurdistan Gas City.​

Quarterly Revenue rises to AED 309 million, 28% increase over same period last year

Quarterly Gross Profit increases by 21% over same period last year

Quarterly EBITDA increases by 76% over same period last year

Sharjah, 14 August 2008

Dana Gas PJSC, the Middle East’s largest regional private sector natural gas company, has announced quarterly results to June 30, 2008, posting revenue from oil and gas production of AED 309 million, a 28 per cent increase over the same period last year. EBITDA (Earnings before Interest, Depreciation and Depletion and Income Tax), reflecting cash flows from operations for the second quarter of 2008 increased by 76 per cent to AED 164 million compared to AED 93 million in the same period last year. Net profit for the quarter was AED 34 million as compared to AED 29 million in the same period last year, an increase of 17%, after finance charges of AED 67 million, non cash depreciation and depletion of AED 76 million and income tax expense of AED 42 million during the quarter;.

Dana Gas’ oil and gas production in Egypt ended the quarter with a production of 2.51 million barrels of oil equivalent and contributed higher revenues due to better realizations of LPG and Condensates.

The Company generated total revenue of AED 581 million for the six-month period ended 30 June 2008, with a Gross Profit of AED 113 million, net profit of AED 59 million and EBITDA for the first half was at AED 306 million, an increase of 60 % over the same period last year.

“Despite these positive financial results, Dana Gas is just at the beginning of an important phase of rapid growth, said Mr Hamid Jafar, Executive Chairman of Dana Gas. “This year is of great significance to Dana Gas, as we build on a healthy financial position, with the start up soon of our major projects in both the UAE and Northern Iraq, which will provide a major boost in propelling Dana Gas to the next level and add significant value to our shareholders. In Egypt also we are implementing an extensive drilling campaign which we hope will significantly increase our reserves and production – we have already made two important new discoveries and hope to add to these further by the end of the year. In our major project in the Kurdistan Region of Iraq, the construction of the 180km pipeline and the first phase processing facilities have now been completed and is in the process of testing and commissioning in preparation for first gas production in the coming few weeks. We have also been assigned a 461 million square foot site for development of the Kurdistan Gas City – the first of its kind and an enormous step forward in our strategy across the Middle East Region. We look forward to continued growth and achievements in the second half of 2008 and beyond, with the skills of our staff and the support of our shareholders,” he added.​

JV project led by Gas Cities LLC to generate investments over USD 40 billion

Erbil, 28 July 2008

Gas Cities LLC, a joint venture between Dana Gas PJSC, the Middle East’s first and largest regional private-sector natural gas company, and its partner Crescent Petroleum, announced today that the 461 million square foot site for the Kurdistan Gas City has been officially assigned by the Kurdistan Regional Government (KRG), for development by Gas Cities LLC, following extensive surveys that have been completed on potential sites within the Kurdistan Region of Iraq.

The groundbreaking ceremony of the Kurdistan Gas City will take place on the 21st of September, 2008 in the presence of the Prime Minister of the Kurdistan Regional Government of Iraq, His Excellency Mr. Nechirvan Barzani, and several Ministers, dignitaries and heads of prospective local as well as international industry leaders.

The Kurdistan Gas City is a major new sustainable and synergistic gas-utilization industrial complex to be built over an area of 461 million square feet, designed to promote private sector investment in a variety of gas-related industries to further benefit the country’s citizens through mass training, job creation in the many tens of thousands, and the promotion of general economic activity.

The Kurdistan Gas City will include industrial, residential and commercial components in an integrated city, with an expected initial investment in the basic infrastructure estimated at US$3 billion, preparing the land for possession by prospective residents. This initial investment will in turn facilitate further Foreign Direct Investment exceeding US$40 billion (AED 147 billion) during the operations phase. The Gas City is being structured to hold over 20 varieties of world scale petrochemical and heavy manufacturing plants, and hundreds of Small and Medium-sized Enterprises (SMEs), served by state-of-the art civic facilities.

His Excellency Mr. Nechirvan Barzani, Prime Minister of the Kurdistan Regional Government, said on the occasion, “Dana Gas and Crescent Petroleum have made a significant contribution to the Iraqi economy through their work in the Kurdistan Region of Iraq thus far, and the new Kurdistan Gas City will be an extension of the considerable and commendable achievements to date. We highly appreciate their dedication towards our region and welcome their efforts to support the Iraqi people and the Iraqi economy. Through their professionalism and genuine concern for the community, we are making significant progress in spurring on economic growth and creating opportunity for our people.”

Hamid Jafar, Executive Chairman of Dana Gas, explained the ramifications of this achievement by saying, “The Kurdistan Gas City is an enormous step forward in Dana Gas’ strategy across the Middle East, North Africa and South Asia (MENASA) Region. At this time, we have the KRG and Prime Minister Barzani to thank for welcoming Crescent Petroleum and Dana Gas into the Kurdistan Region of Iraq, as we work towards strengthening the Iraqi economy and bettering the livelihood of the Iraqi people.”

The Kurdistan Gas City is the first in a series of “Gas Cities” that are being developed across the Middle East, North Africa and South Asia (MENASA) region by Gas Cities LLC, a joint venture company that has been established by and between Dana Gas and Crescent Petroleum. The Kurdistan Gas City is projected to generate direct and indirect job opportunities for nearly 200,000 Iraqi citizens in infrastructure, industrial projects, support services and other business activities.

Badr Jafar, Chairman of Gas Cities LLC, and Executive Director at Crescent Petroleum, commented on the occasion by saying, “The Kurdistan Gas City is the first in a series of similar gas cities planned for the entire region. Gas Cities LLC, as a new venture dedicated to the introduction and development of this unique concept, are formidable public-private sector partnerships that will generate massive regional and foreign direct investment and unrivalled local opportunities in the communities into which we plan to introduce the Gas City concept.”

Meanwhile, pursuant to the service agreements signed in April 2007 with the Kurdistan Regional Government, construction is more than 80 percent complete on 180 km of natural gas pipeline and two LPG plants, carried out jointly by Dana Gas and Crescent Petroleum in the Kurdistan Region of Iraq to supply, process and transport natural gas to fuel urgently needed local electricity generation. The project is employing Iraqi contractors, professionals, skilled technicians and labour in phases of construction stages to maximise local content and economic benefit. The entire project is on track for first gas supply of 150 million cubic feet per day in the coming weeks, rising to 300 million cubic feet by early 2009.

The gas supplied to the two new power plants under construction in Erbil and Sulymaniya, will generate 1,250 MW of electricity, for the benefit of over 4 million Iraqi citizens in the Kurdistan Region and the rest of Iraq. The project involves a total investment of $650 million – the largest single private sector investment in Iraq for decades.

As a result of this investment not only will urgently needed gas be supplied to the power plants cost-effectively but it will also result in savings to the Iraqi government’s budget of over $2 billion annually in fuel costs. The project implementation will also provide work opportunities for over 2,000 Iraqi nationals of all ethnic groups, and provide comprehensive training in oil & gas operations for Iraq’s citizens.

New “Al Baraka 2” well yields first 2008 discovery.Dana Gas continuing aggressive US$ 170 million drilling campaign

Sharjah, 29 June 2008

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, has announced a discovery from a new oil zone in its Egyptian concessions, marking the first discovery in the company’s US$ 170 million drilling campaign for 2008.

Drilling of the “Al Baraka-2” well in the Komombo concession, where Dana Gas made its first commercial oil discovery last year, has been completed. The new well confirmed the first discovery, Al Baraka-1, in the Abu Ballas formation, and proved a new discovery in the underlying Six Hills formation.

“This is the first discovery for Dana Gas in its major drilling campaign for this year,” said Ahmed Rashid Al Arbeed, Executive Director, Upstream. “We hope such discoveries continue to build company revenues and profitability, particularly in light of current high oil prices.

“In the coming weeks, Dana Gas will perform hydraulic fracturing of the producing reservoirs in two wells, Al Baraka-1 and Al Baraka-2, to enhance their productivity,” he noted.

Dr Hany Elsharkawi, Dana Gas Egypt Country Director, provided further details and said, “In addition to this discovery, we have commenced drilling of the West Baraka-1 exploration well in a new prospect in the Komombo concession, with completion expected before the end of next month, and are in advanced stages of drilling deeper gas exploration wells in our Nile Delta acreage, with results expected soon.”

“The recent oil discoveries made by Dana Gas in Upper Egypt, are of great importance as they prove the presence of a hydrocarbon system for the first time in the history of the area,” Dr Elsharkawi explained. “It certainly enhances the chances of proving large oil reserves in this part of the country which will positively impact the prosperity and the well being of the region and its residents, for the benefit of the Egyptian economy as a whole.”

Dana Gas is the sixth largest natural gas producer in Egypt today. A report by the Middle East Economic Survey (MEES) confirmed that Dana Gas was the only private company from the region to make new Middle East oil and gas discoveries in 2007. The company announced earlier this year that it would embark on a US$ 170 million drilling programme covering 15 exploration wells and four development wells in 2008.

Meanwhile, Dana Gas is currently leading a consortium to build and operate an LPG extraction plant from the gas in the Ras Shukeir area of the Gulf of Suez, in partnership with the Egyptian Natural Gas Holding Company (EGAS) and the Arab Petroleum Investment Corporation (APICORP).​

Components airlifted to Iraq as part of fast-track project

Sharjah, 10 June 2008

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, along with its project partner Crescent Petroleum, has chartered the world’s largest aircraft, the Antonov 124 (An-124), to transport a large load of equipment and components from Houston, Texas (USA) to Erbil, Iraq for use in Dana Gas and Crescent Petroleum’s projects under implementation in the Kurdistan region of Iraq, at a cost of US$ 1.25 million.

The companies’ project is being implemented on a fast-track basis and involves a total investment of $650 million – the largest single private sector investment in Iraq since 2003. The project implementation includes upstream development and production, processing with state-of-the-art LPG plants, and transportation of natural gas through a new 180km pipeline, in order to provide urgently-needed gas supplies to cost-effectively fuel new power stations under construction, providing savings to the Government budget of over $2 billion annually in fuel costs. The project implementation will also provide work opportunities for over 2,000 Iraqi nationals of all ethnic groups, and provide comprehensive training in oil and gas operations for Iraq’s citizens.

The An-124 shipment consisted of essential project components weighing 58 tons that are to be utilized in the construction of two LPG plants which will be used to transport natural gas to new power stations being built in the Iraqi Kurdistan region. The equipment was loaded and secured carefully on the An-124 using the aircraft’s 10-ton gantry crane and a team of specialized personnel over a period of five hours.

Part of a requirement identified in the later stages of the project to add flexibility to the plant, the components were identified, acquired, airlifted to Adana airport in Turkey, and transported on flatbed trucks to the project site in a record delivery time of just three weeks.

Thomas Watts, Project Director for the project in Iraqi Kurdistan, explained the rationale behind chartering the Antonov 124 for this task, and said, “Chartering the largest plane in the world at a cost of US$1.25 million to move urgently needed equipment from Houston to Iraq shows that Dana Gas and Crescent Petroleum are going the extra mile to get the job done.

“We have a mandate to expedite the implementation of this project in order to meet the needs of the Iraqi economy and to deliver much-needed gas supplies that will fuel power generation and industry, resulting in major savings for the Iraqi economy and a catalyst for industry and resultant job-creation,” Mr. Watts added.

The An-124 has been the largest plane ever mass produced in the world since 1982, with a capacity of up to 150 tons of cargo. It can also carry up to 88 passengers in its upper deck, and is able to kneel in order to facilitate front loading through its nose. The An-124 has been used to transport some of the largest and most delicate cargo in the world, including large industrial equipment, train locomotives, small aircraft, archaeological treasures, and animals like elephants and even whales.​

Sharjah, 01 June 2008

Dana Gas and Emarat, along with the three end-users the Federal Electricity and Water Authority of the UAE (FEWA), the Sharjah Electricity and Water Authority (SEWA), and Dana Gas affiliate Crescent Natural Gas Company Limited (CNGCL) – signed a Memorandum of Understanding (MoU) for the implementation and utilization of the pipeline in January 2006.

Dana Gas and Emarat each have a 50 percent stake in the construction, ownership and operation of the pipeline. Phase One of the project was completed in May 2006 and has since been delivering gas to the SEWA power station at Hamriyah.

The main pipeline of the joint Hamriyah Gas Pipeline Project is a 48-inch gas pipeline that connects the Sharjah gas hub at Sajaa to the fast-growing industrial area at Hamriyah, and covers a distance of 32 km, with a capacity of one billion cubic feet per day. The completion of the pipeline is a milestone in Dana Gas’s UAE projects. The new 48-inch pipeline is now ready to receive gas supplies from Sajaa and deliver them to the premises of the three end-users at Hamriyah.

Announcing the project’s completion, Rashid Al-Jarwan, General Manager of Dana Gas, said, “This is a proud moment for Dana Gas, showcasing the success of true public-private partnership in meeting the energy needs of the UAE. This strategic partnership has set an example for further regional cooperation, and will elevate the level of service provided to the end users of this vital pipeline.”

Acting General Manager of Emarat, Jamal Abdul Rahman Al Medfa, commented on the completion of the pipeline and said, “We are delighted at the completion of this critically important project which clearly embodies our distinct and fruitful ties, and the existing level of cooperation between the public and private sector in launching various projects and initiatives that promise to play a prominent role in supporting and enriching the national economy of the UAE.”

Mr. Al Medfa further noted that this project carries a great deal of importance for Emarat, pointing out that the completion of the pipeline is yet another addition to Emarat’s long list of accomplishments over the past years. He added that this was in line with the company’s strategy of continually developing its services and entering new partnerships to diversify its investment base and raise the level of quality services presented to its clients​.

Participates at World Economic Forum on the Middle East in Sharm El Sheikh

Sharjah
May 20 2008

Dana Gas PJSC, the Middle East’s first and largest regional private sector natural gas company, participated this week at the World Economic Forum on the Middle East 2008 in Sharm El Sheikh, Egypt, where it received a warm welcome as a new member of the World Economic Forum’s Community of Global Growth Companies, which recognizes dynamic companies with a proven track record of success and demonstrated potential to attain global leadership in the next five to ten years.

Nearly 200 premier companies from all the regions of the world are members of the community, characterized by a demonstrated annual growth rate of no less than 15% over two years; a demonstrated intent and potential to build a global business; top industry ranking with a turnover of US$ 100 million to US$ 5 billion; solid projected growth potential; a leading role in shaping the future of their industry or region; and a healthy, solid reputation.

The World Economic Forum is an independent international membership organization integrating leaders from business, government and academia into a partnership committed to improving the state of the world. The annual three day World Economic Forum on the Middle East was held this year in Sharm El Sheikh, Egypt, from 18 – 20 May, and was attended by heads of state and government, and business and policy leaders from across the Middle East, who met to address the leading economic developments and challenges facing the region.

“Dana Gas is honoured to be designated a member of the Community of Global Growth Companies, an important initiative of the World Economic Forum’s for recognising and enhancing the network of leading private-sector companies worldwide. This recognition by the World Economic Forum is a testament to the accomplishments of Dana Gas over the past two years as a company from the region, by the region and for the region,” said Mr Hamid Jafar, Executive Chairman of Dana Gas, speaking from the World Economic Forum on the Middle East Summit in Sharm El Sheikh.

He added: “The mission of Dana Gas to provide clean energy for our region’s tomorrow is very much aligned with the wider goals of the World Economic Forum, which is committed to improving the state of the world, and we are proud to support its efforts as a responsible global corporate citizen.”

The World Economic Forum’s Community of Global Growth Companies (GGCs) was created to recognize the next generation of industry leaders. It supports them as they navigate the challenges of new geographies, markets, cultures and regulatory systems as they become a major driving force in social and economic development.

These GGCs benefit from a programme of structured content, delivered by Strategic Partners of the Forum, as well as informal, peer-to-peer exchanges of experiences and best practices. Members of this Community have opportunities to come together at all Forum regional meetings as well as at the Annual Meeting of the ‘New Champions’. The Inaugural Annual Meeting of the New Champions took place in Dalian, People’s Republic of China, from 6-8 September 2007.

Established in late 2005, Dana Gas has already achieved important assets and projects in the upstream, midstream and downstream sectors of the growing natural gas industries of the UAE, Egypt and Iraq, and is also developing a network of industrial ‘Gas Cities’ across the Middle East Region. In addition the Company is developing new projects and evaluating further acquisition opportunities, specifically in the Gulf Region and in North Africa.

About Dana Gas
Dana Gas (PJSC) is the first regional private-sector natural gas company in the Middle East, established with over 300 reputable founder shareholders from across the Gulf Cooperation Council (GCC) region, and some 300,000 investors from over 100 nationalities worldwide who submitted applications of over US$78 billion over ten days in the company’s regional IPO in late 2005. Headquartered in Sharjah in the UAE and listed on the Abu Dhabi Securities Exchange (ADX), Dana Gas already possesses a network of offices in Saudi Arabia, Egypt, the UK, and Canada, with further offices opening throughout the Middle East.
Dana Gas currently has assets and projects in gas exploration and production, processing, transportation and marketing in several countries, and aims to play a major role in the rapidly-growing natural gas business throughout the Middle East, North Africa and South Asia (MENASA) Region across the entire gas value chain. In addition to its current projects, Dana Gas is expanding its activities in all elements of the natural gas value-chain, including upstream exploration and production; through the midstream transmission and distribution of gas including LNG trading; and downstream into gas-related industries and petrochemicals. www.danagas.ae

For further information please contact:
Mariam Keblawi,
SAHARA Communications
Contact : 971-4-329 8996​

Major projects and operations underway in Northern Iraq, Egypt, UAE. Company looks to expand with new business in GCC and North Africa.

Sharjah, 18 May 2008

Dana Gas PJSC, the Middle East’s first and largest regional private-sector natural gas company, has announced investments of over US$ 500 million this year in the Company’s projects in Northern Iraq, Egypt and the UAE.

Dana Gas posted revenues of over AED 1 billion in 2007 which was its first year of operations, and also saw the Company add to its UAE positions with major new entries into the gas upstream business in Egypt and the Kurdistan Region of Iraq, while raising US$1 billion in an international sukuk offering that had to be increased in size due to strong investor demand. The Company’s announced investments for 2008, covering all sectors of the gas industry from the upstream through to the downstream, are expected to realize the value of these strategic positions and further boost revenues over the next stage of Dana Gas’s development.

“This year is an important year for the Company, as we will be building upon the important milestones and solid foundations achieved last year, and making major investments that will rapidly take Dana Gas to a new level in its growth and development,” said Mr. Ahmed Al-Arbeed, Dana Gas Executive Director, Upstream.

“Dana Gas has already established strong positions in all areas of the natural gas business in the UAE, Egypt and Iraq, and we will continue to build upon these as well as expand into new countries in the GCC Region and North Africa, especially in view of the record oil prices currently witnessed. Our focus this year will be implementing the important projects in the UAE and the Kurdistan Region of Iraq, while significantly expanding the drilling programme of new wells in Egypt in light of the encouraging new discoveries we have already achieved,” Mr. Al Arbeed added.

Dana Gas is currently implementing a major integrated gas project in Iraq’s Kurdistan region on a fast-track basis in a record time of just one year, in a 50:50 joint venture partnership with Crescent Petroleum, at a combined investment of US$ 650 million. The project, which involves gas development, production, processing and pipeline construction, is the largest private sector energy project in Iraq, and is already over 80% complete.

First gas production from the project is on target for the middle of this year, building up to a production of 300 million cubic feet per day by the year-end, approximately twice the Company’s current production in Egypt. Dana Gas’s agreements with the Kurdistan Regional Government of Iraq were signed in April 2007, and cover a range of energy-related services and the building of substantial infrastructure to process and transport natural gas, as well as the development of the first “Dana Gas City”, a unique industrial complex that will leverage external economies of scale by powering several industrial operations concentrated in the same area using natural gas. Dana Gas is proudly behind the largest private sector project in Iraq, which will provide jobs, training, infrastructure and savings on fuel imports to the region, as well as an important long-term strategic position for Dana Gas in an area with high growth potential.

In the UAE, in addition to preparing for start-up for the processing and supply of imported gas, Dana Gas has recently signed a 25-year concession agreement for exploration and development of gas in an area of over 1,000 sq km offshore Sharjah, including development of the discovered Zora Gas Field. The development plans are being finalized with the tenders for offshore oilfield services soon to be awarded for fast-track implementation to produce gas in 2009.

Another region in which Dana Gas has established itself in the past year is Egypt, where the company now produces 140 million standard cubic feet per day of gas and 6,000 barrels per day of propane, butane and condensate, making the Company the sixth largest producer of gas in the country. All products are sold in Egypt for use in the local markets and there are extensive plans to drill 19 more development and exploration wells in the country this year at an investment of US$170 million, following positive exploration results by Dana Gas including new gas discoveries and the first commercial discovery of oil in the Upper Egypt region.

Last year also saw the acquisition of DANAGAZ Bahrain, an affiliate company owned jointly by Dana Gas and local partners. Its first investment project will be to build and operate the Gulf of Suez Liquids Plant in Egypt, a facility that will be capable of processing 55 billion cubic feet of natural gas per year.

Dana Gas’ strong portfolio of assets and projects will expand further in 2008 with the Company developing the unique “Dana Gas City” concept in several new locations across the Middle East and North Africa Region, as well as actively pursuing new opportunities and projects in the Region’s rapidly growing natural gas sector, in upstream, midstream and downstream activities.

With energy prices and demand on the increase across the Middle East Region, a recent report by the APICORP has estimated over US$210 billion of required investments in the region’s natural gas industry in the next five years alone.​

First Quarter EBITDA up by 45% to AED 142 million

Sharjah, 15 May 2008

Dana Gas PJSC, the Middle East’s first and largest regional private sector natural gas company, has announced results for the quarter ended 31 March 2008, posting growing revenues from oil and gas production of AED 272 million, a 35% increase over the same period last year. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), reflecting cash flows from operations for the first quarter of 2008 increased by 45% to AED 142 million compared to AED 98 million in the same period last year. Net profit for the quarter was AED 25 million, after finance charges of AED 73 million and non-cash depreciation charges of AED 82 million; representing an increase of 19% over the same period last year.

“In 2008 Dana Gas expects to achieve rapid growth after the solid foundations established by the Company in 2007. The UAE and Kurdistan Gas Projects are both expected to start up by the middle of this year and in Egypt we are also implementing an active USD 170 million drilling campaign of 19 new wells which we anticipate will significantly increase our reserves and production,” said Mr. Hamid Jafar, Executive Chairman of Dana Gas, who added:

“In addition, the first quarter of this year has already seen Dana Gas significantly expand its existing position in the UAE to the exploration and production of natural gas, as we recently entered into a 25 year concession agreement for exploration and development of gas in an area of over 1,000 sq km offshore Sharjah, including development of the discovered Zora Gas Field, marking the Company’s first entry into the exploration and production of gas in the GCC, and also its first offshore operations. We look forward to continued growth and achievements in 2008 and beyond, with the skills of our staff and the support of our esteemed shareholders.”

Established in late 2005, Dana Gas has already achieved important assets and projects in the upstream, midstream and downstream sectors of the growing natural gas industries of the UAE, Egypt and Iraq, and is also developing a network of industrial ‘Gas Cities’ across the Middle East Region. In addition the Company is developing new projects and evaluating further acquisition opportunities, specifically in the Gulf Region and North Africa.​

Exploration well in Southern Egypt wins “Best New Concept”

Sharjah, 04 May 2008

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, has been awarded “Best New Concept” for the Al-Baraka well in Southern Egypt’s Komombo concession by the Egyptian Petroleum Exploration Society (EPEX) at its 2007 Best Achievements Awards Ceremony.

EPEX is the gateway of spreading and exchanging applied petroleum exploration knowledge among the different members of the Egyptian exploration community for the stimulation of new ideas, concepts and innovation of new exploration technology.

The Best Achievements Awards are presented by EPEX in cooperation with, the Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS), and the Ganoub El Wadi Holding Petroleum Company (GANOPE).

In a presentation Dr Elsharkawi, Dana Gas Egypt Country Director, described the Al Baraka well achievement and the exploration practices that led to Dana Gas receiving the award:

“Southern Egypt is incredibly important to the country’s oil and gas industry,” said Dr Elsharkawi. “Dana Gas’ achievement in the area as the first to discover oil in commercial quantities in Southern Egypt paves the way for discovery of more reserves. We will continue to work on the Komombo concession on the western bank of the Nile, where drilling and exploration covers an area of more than 5,000 acres.”

“Although the project was challenging with respect to population density and geographic considerations, the excellent knowledge shown by the team of the area’s geology and seismic activity, along with solid relationships with Egyptian authorities, played a vital role in the success that led to this award.”

Dana Gas is the sixth highest natural gas producer in Egypt and its oil and gas production operations in the country achieved a year-end exit production rate of over thirty-two thousand barrels of oil equivalent per day in 2007, due to new discoveries achieved by the Company in the Nile Delta.

In order to implement its comprehensive plan for sustained and continued exploration, Dana Gas has earmarked US$170 million to drill a total of 19 new wells in Egypt in 2008, including 15 exploration wells and four development wells. The wells are located at the Komombo Concession in Upper Egypt and two concessions in the Nile Delta.

About Dana Gas:

Dana Gas (PJSC) is the first regional private-sector natural gas company in the Middle East, established with over 300 reputable founder shareholders from across the Gulf Cooperation Council (GCC) region, and some 300,000 investors from over 100 nationalities worldwide who submitted applications of over US$78 billion over ten days in the company’s regional IPO in late 2005. Headquartered in Sharjah in the UAE and listed on the Abu Dhabi Stock Market (ADSM), Dana Gas already possesses a network of offices in Saudi Arabia, Egypt, the UK, and Canada, with further offices opening throughout the Middle East. Dana Gas currently has assets and projects in gas exploration and production, processing, transportation and marketing in several countries, and aims to play a major role in the rapidly-growing natural gas business throughout the Middle East North Africa (MENA) Region across the entire gas value chain. In addition to its current projects, Dana Gas will be expanding its activities in all elements of the natural gas value-chain, including upstream exploration and production; through the midstream transmission and distribution of gas including LNG trading; and downstream into gas-related industries and petrochemicals. www.danagas.ae

For more information, please contact:
Wajih Halawa
Account Manager
SAHARA Communications
Contact : +971-4-329 8996 / +971-50-240 3357
Email : wajih@saharagcc.com

Company AGM Reviews First Year of Operations and Expansion Plans for Coming Year

Sharjah, 6 April 2008

Dana Gas PJSC, the Middle East’s first regional private sector natural gas company, reviewed the key milestones and business growth achieved by the company in 2007 and summarized the outlook for 2008, at the Company’s 2nd Annual General Meeting (AGM) that was held in Sharjah today, attended by the Company Board of Directors and shareholders.

2007 saw Dana Gas achieve its first revenues and operating income, as well as make important new entries into all areas of the natural gas business in Egypt and Northern Iraq, while building upon its positions and assets in the UAE. The Company grew from a small team in Sharjah to a staff of over 400 professionals in a network of offices across the Middle East and worldwide. The year also witnessed a rise in world oil prices, and a growing interest shown by international investors in the energy sector of the Middle East Region.

“With oil prices now over $100 per barrel and increasing interest in the energy sector worldwide and especially our region, Dana Gas is the only publicly-listed gas resource company in the Gulf, and has already established strong positions in the UAE, Egypt and Iraq, in all areas of the natural gas business – from exploration and production, to processing and pipeline transmission, and through to gas marketing and downstream projects,” said Hamid Jafar, Executive Chairman of Dana Gas, in his report to the AGM on behalf of the Board of Directors.

Some of the highlights of Dana Gas’ achievements over the past year which were reported at the meeting included: the Company’s highly successful US$1 billion Convertible Sukuk issue; the signing of a major agreement for development of the Sharjah Western Offshore Concession; rapid progress in developing two of Iraq’s major gas fields in the Northern Kurdistan Region for supplying local power needs; historic commercial oil discoveries in Southern Egypt as well as natural gas and condensate discoveries in the Nile Delta, exceeding the company’s 2007 production goals; finalising readiness for the transportation and processing of imported natural gas in the UAE; the formation of a joint venture with Emarat of the UAE to own, manage and operate the Middle East’s first common user gas pipeline; the announcement of a strategic co-investment agreement with the Arab Petroleum Investments Corporation (APICORP); and a strategic alliance with leading private equity firm Abraaj Capital to jointly invest in natural gas projects.

Dana Gas ended the year in a healthy financial position, with revenues in excess of Dh 1 billion, cash from operations of Dh 478 million, and total assets grown by 59% from the previous year, to Dh 10.8 billion. The Company’s share price rose by 72% over the previous twelve months, outperforming the market index.

The Company also presented its growth plans and outlook for the coming year:

“For 2008, Dana Gas aims to build on the strong foundations of 2007. In addition to the expected start-up of operations and revenues from both the import of Iranian gas and the Kurdistan region’s gas projects by the middle of this year, the Company is also implementing an active $170 million drilling campaign of 19 new wells in Egypt, where we hope to increase our gas reserves to significantly increase production, and take full advantage of high energy prices,” reported Executive Chairman Hamid Jafar, who added:

“In addition to our major investments and expansions in Egypt, Northern Iraq, and here in the new concession offshore Sharjah, we will also be expanding our unique concept of developing ‘Gas Cities’ in other countries of the Region, and pursuing further opportunities and acquisitions currently under active study in the Gulf Region and in North Africa.”

The AGM also approved the audited accounts for the period ended December 31, 2007, and the auditors’ report.​

Aggressive $170 million drilling campaign for 2008

Sharjah
Mar 30 2008

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, has announced that it is executing an aggressive exploration and development programme for its Egypt assets in 2008. The program involves the drilling of 19 new wells, including 15 exploration prospects and four development wells. The total budgeted upstream capital expenditures for Egypt in 2008 are more than $170 million, and five drilling rigs are presently being acquired to implement the programme.

The wells are located at the Komombo concession in Upper Egypt and the two Nile Delta concessions. There will be one exploration and one development in the Komombo concession, three development and 14 exploration wells in the Nile Delta, five of which are targeting the Sidi Salem Formation. The wells in the Sidi Salem Formation are technically challenging, targeting depths around 4,000 meters.

Dr. Hany Elsharkawi, Dana Gas Country Director in Egypt, said: “This is a defining year for the upstream operation in Egypt, and this exploration and development program could potentially double the size of our reserves, and would provide further boost to Dana Gas production and revenues in Egypt. The gas sector in Egypt is expanding rapidly, and we are confident that this program will grow our already strong position in the Country.”

Dana Gas, the 6th highest natural gas producer in Egypt from among the 64 companies operating in the country, has announced historic discoveries in Southern Egypt from its El Baraka – 1 exploration well in September 2007, followed by a further major discovery in the Dabayaa delineation well in December 2007.

Dana Gas has already taken the initial steps to build the Gulf of Suez LPG Plant in partnership with the Egyptian Natural Gas Holding Company (EGAS) and the Arab Petroleum Investment Corporation (APICORP). The plant will produce approximately 120,000 metric tonnes per year of propane and butane, with the products to be exported to International Markets and thus providing significant value to Egypt’s gas resources.

​25 year Agreement Includes Gas Production and Exploration Activities

Sharjah
Mar 12 2008

Dana Gas, the Middle East’s first and largest regional and private-sector natural gas company, today announced an Agreement for the exploration and development of the Western Offshore concession in Sharjah, UAE, where the Company is headquartered. The deal marks Dana Gas’ entry into the GCC exploration and production sector, and is also the first offshore upstream asset for the Company in the Middle East..

The 25-year agreement was signed by H.H. Dr Sheikh Sultan bin Mohammed Al Qasimi, UAE Supreme Council member and Ruler of Sharjah, and Mr. Hamid Jafar, Executive Chairman of Dana Gas, in a ceremony attended by H.H. Sheikh Ahmed Bin Sultan Al-Qasimi, Deputy Ruler of Sharjah and Chairman of the Sharjah Petroleum Council, and several Members of the Board of Directors of Dana Gas, including the Company’s Deputy Chairman and former Kuwaiti Oil Minister, Dr. Adel Al-Sabeeh.

The concession agreement covers a total offshore area of over 1,000 square kilometres, and includes the development of the Zora gas field within Sharjah, which was discovered in 1979. The work programme will include resuming horizontal drilling of two wells originally drilled by Crescent Petroleum, completion of the drilling work, the installation of offshore platforms for immediate processing and production and the transportation of the processed gas via 25km of offshore pipeline to be installed by Dana Gas.

The Agreement also provides for important exploration works within the concession area, including geological evaluation studies, followed by seismic surveys and the drilling of exploration wells.

“We are very pleased to enter into this long-term agreement with Dana Gas, as a local and regional company with proven capabilities in all areas of the region’s natural gas industry,” said Sheikh Ahmed Bin Sultan Al-Qassimi, Deputy Ruler of Sharjah and Chairman of the Sharjah Petroleum Council.

Dana Gas Executive Chairman Hamid Jafar added: “Dana Gas is proud to enter into this important agreement, marking the first exploration and production project for the company in the GCC region, and complementing the Company’s assets and activities in the processing, transportation and marketing of natural gas. We look forward to a long and fruitful partnership with the Government of Sharjah in this regard.”

The preliminary costs of the development phase of the project are estimated at US$ 55 million, while the exploration works are estimated at a further US$ 65 million. The ‘Sharjah 2’ well, which was drilled by Crescent Petroleum within the concession area in 2001, was successfully proven with an initial gas production rate of 41 million cubic feet per day from the Thamama formation.

Dana Gas has been expanding in all areas of the natural gas industry across the Middle East and North Africa Region, including the upstream exploration and production for natural gas, such as in Egypt where the Company is the 6th largest gas producer from among 64 companies, and most recently in the Kurdistan Region in Northern Iraq, where the Company is executing an important integrated project to supply gas for local power generation, including work on two major gas fields.

About Dana Gas

Dana Gas (PJSC) is the first regional private-sector natural gas company in the Middle East, established with over 300 reputable founder shareholders from across the Gulf Cooperation Council (GCC) region, and some 300,000 investors from over 100 nationalities worldwide who submitted applications of over US$78 billion over ten days in the company’s regional IPO in late 2005.

Headquartered in Sharjah in the UAE and listed on the Abu Dhabi Stock Market (ADSM), Dana Gas already possesses a network of offices in Saudi Arabia, Kurdistan Region – Iraq, Egypt, the UK, and Canada, with further offices opening throughout the Middle East. Dana Gas currently has assets and projects in gas exploration and production, processing, transportation and marketing in several countries, and aims to play a major role in the rapidly-growing natural gas business throughout the Middle East, North Africa and South Asia (MENASA) Region across the entire gas value chain.

In addition to its current projects, Dana Gas will be expanding its activities in all elements of the natural gas value-chain, including upstream exploration and production; through the midstream transmission and distribution of gas including LNG trading; and downstream into gas-related industries and petrochemicals. www.danagas.ae

For more information, please contact:
Wajih Halawa
SAHARA PR
Contact : +971-4-329 8996 / +971-50-240 3357
Email : wajih@saharagcc.com

Company Chairman briefs KRG Prime Minister on Progress Total Investment of $650 million, highest in Iraqi petroleum sector

Sharjah
Mar 02 2008

Dana Gas, the Middle East’s first and largest regional private sector natural gas company, has announced that its project in the Kurdistan Region of Iraq to supply, process and transport natural gas to fuel urgently needed local electricity generation is progressing at a rapid pace, with over 70% overall project completion to date.

The project, following service agreements signed in April 2007 with the Kurdistan Regional Government and carried out in partnership with Crescent Petroleum, has completed the engineering, procurement and manufacturing phases, and is now in the construction stage, using Iraqi contractors to maximise local content and economic benefit. The entire project is on track for first gas supply of 150 million cubic feet of gas per day by middle of this year, rising to 300 million cubic feet by early 2009.

The gas will supply new power plants under construction in Erbil and Sulymaniya, to provide 1,250 MW of electricity generation, for the benefit of over 4 million Iraqi citizens in the Kurdistan Region and the rest of Iraq.

The Prime Minister of the Kurdistan Regional Government of Iraq, His Excellency Nechirvan Barzani, received Hamid Jafar, Executive Chairman of Dana Gas and Chairman of the Board of Crescent Petroleum, who briefed the Prime Minister on progress of the project, which involves a total investment of $650 million – the largest single private sector investment in Iraq since 2003. The project implementation includes upstream development and production, processing with state-of-the-art LPG plants, and transportation of natural gas through a new 180km pipeline, in order to provide urgently-needed gas supplies to cost-effectively fuel the new power stations under construction, providing savings to the Government budget of over $2 billion annually in fuel costs. The project implementation will also provide work opportunities for over 2,000 Iraqi nationals of all ethnic groups, and provide comprehensive training in oil & gas operations for Iraq’s citizens.

The meeting between the KRG Prime Minister and Hamid Jafar also covered the progress of the Strategic Alliance Protocol signed by the parties, whereby the Kurdistan Regional Government of Iraq, Dana Gas, and its partner Crescent Petroleum have agreed to jointly review the region’s natural gas resources in Northern Iraq with a view to the optimization, development and utilization of that important resource for the benefit of the Iraqi people. The Protocol agreement includes the “Kurdistan Gas City” – a major new gas-utilization industrial complex to be built over an area of approximately 35 square kilometers, designed to promote private sector investment in a variety of gas-related industries to further benefit the country’s citizens through training, job creation in the tens of thousands, and the promotion of general economic activity. The initial feasibility study for the “Kurdistan Gas City” project has now been completed, with final site selection underway.

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, and Emirates General Petroleum Corporation (Emarat), have agreed to form a joint venture to own, manage and operate the Middle East first common user gas pipeline, which will be completed in March this year.

Sharjah
Feb 29 2008

Dana Gas and Emarat, along with the three end-users the Federal Electricity & Water Authority of the UAE (FEWA), the Sharjah Electricity & Water Authority (SEWA), and Dana Gas affiliate Crescent Natural Gas Company Limited (CNGCL) – signed a Memorandum of Understanding (MoU) for the implementation and utilization of the pipeline in January 2006. Dana Gas and Emarat has fifty fifty partnership in the construction, ownership and operation of the pipeline. Phase one of the project was completed in May 2006 and has since been delivering gas to the SEWA power station at Hamriyah

The main pipeline of the joint project “Hamriyah Gas Pipeline Project” is a 48” gas pipeline that connects the Sharjah gas hub at Sajaa to the fast-growing industrial area at Hamriyah, and covers a distance of 32 kms, with a capacity of one billion cubic feet per day. Soon after its completion in March this year, the 48” pipeline will deliver gas supplies to the three end-users.

Commenting on the event, Rashid Al-Jarwan, General Manager of Dana Gas, said, “this project is a prime example of the solutions that can be achieved through the cooperation of government and private sector entities”. He added that, “the strategic partnership between the two companies for this project in the UAE has been very positive and has laid the groundwork for future projects throughout the region. We see this joint venture agreement as an opportunity to build upon for future cooperation, thereby improving the services to the end users of this vital pipeline.

Parties to cooperate on downstream gas projects and petrochemicals

Sharjah
Feb 24 2008

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, has announced the signing of a Memorandum of Understanding (MoU) with Ikarus Petroleum Industries, a major Kuwaiti established company with ownership in several petrochemical ventures in the GCC states.

The MoU was signed last week by Rashid Saif Al Jarwan, General Manager of Dana Gas, and Suhail Abograis, Chief Executive Officer of Ikarus Petroleum agreement to cooperate on gas projects in the Middle East and North Africa. Dana Gas brings to the table its many assets and projects in gas exploration and production, as well as processing, transportation and marketing in several countries, including Egypt, UAE and Iraq’s Kurdistan Region. The MoU will focus specifically on petrochemicals and downstream projects, including in Dana Gas Cities under development at several locations across the region. The Dana Gas City proprietary concept involves developing local gas-based industries, encompassing integrated community-optimizing natural gas utilization.

Ikarus Petroleum, parented by three Kuwaiti Companies; National Industries for Building Materials, Noor Financial Investment Company, and Markaz Energy Fund as major shareholders. Ikarus’s investment portfolio consist of Saudi International Petrochemical Company (Sipchem), which is engaged in the production and marketing of petrochemicals products, as well as of National Industrialization Co. (Tasnee), which is engaged in the operation of propane dehydrogenation and polypropylene projects.

Rashid Saif Al Jarwan said, “Dana Gas and Ikarus and are committed to developing the gas industry throughout the MENASA region, and what better way to accomplish this goal than to align our two companies and share knowledge and resources. Through this MoU, we are laying the groundwork for further cooperation between Dana Gas and Ikarus, as well as other companies in the future.”

Ikarus CEO, Suhail Abograis, added, “Both Dana Gas and Ikarus recognise the potential mutual business advantage to be gained from sharing knowledge and resources, and on this basis we have decided to cooperate on projects relating to the gas industry in the Middle East and North Africa region.”

As part of the MoU, Dana Gas and Ikarus have agreed to discuss and list any and all projects that may be of mutual interest and that are consistent with each company’s strategic objectives. They have also undertaken to fully cooperate and coordinate in studying, assessing and negotiating projects and engaging technical and financial consultants, and to cooperate in conducting feasibility studies for any project.

Nader Sultan, Chairman of Board of Ikarus Petroleum, and former CEO of Kuwait Petroleum Corporation, is also a Member of the Dana Gas International Advisory Board.

The relationship between Dana Gas and Ikarus promises to lay the groundwork for a greater level of cooperation in the region’s energy sector. The combined broad focus areas of both Companies will allow for a wider range of projects that will be jointly undertaken as a result of this MoU.

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, has announced its successful participation in the 3rd Algerian Economic Forum, which was held in Algiers on 20-21 January 2008, under the patronage of HE Abdul Aziz Boutfliqa, Algerian President, and attended by HE A. Aziz Bellchadem, Algerian Prime Minster.

Sharjah
Feb 6 2008

The forum was organised by the Algerian Ministry for Participation and Promotion of Investment, the Algerian Chamber of Trade and Industry, and the Al-Iktissad Wal-Aamal Group, and covered several topics of interest to investors. It was attended by a cross-section of government and industry representatives and many investment institutes from the Gulf, including the Sharjah Chamber of Commerce, and provided a useful introduction to the Algerian business environment.

Rashid Al-Jarwan, General Manager of Dana Gas, and Greg Renwick, Business Development Director held private discussion meetings with Sonatrach, Algeria’s national oil company, and the Algerian Ministry for Energy and Mines.

Mr Mohamed Meziane, Chairman and CEO of Sonatrach, welcomed Dana Gas’ interest in Algeria and confirmed that Sonatrach was interested in discussing various forms of cooperation with international companies and prominent GCC companies entering Algeria for the mutual benefit of both sides.

A similar meeting was held with Mr Abbas Faycal, Managing Director and Under Secretary of the Algerian Ministry of Energy and Mines, his staff, and Mr Sid Ali Betata, Chairman of the National Agency for Valuation of Hydrocarbon Resources (ALNAFT), one of the Ministry’s two divisions. The primary topic of discussion was the upcoming Algerian exploration bid round. Up to 15 blocks are expected for nomination shortly, most of which are gas prone. ALNAFT will select bid winners based on the bid and the company’s ability to bring state-of-the-art development technologies to Algeria and to provide access to opportunities outside Algeria.

One of Dana Gas’ main strengths is its ability to participate across the gas value chain and to provide integrated solutions to the entire natural gas industry. Sonatrach said it would consider studies which involved value chain proposals.

Algeria is a significant producer of both oil and natural gas, and has the third largest proven oil reserves in Africa as well as the eighth-largest proven natural gas reserves in the world. Oil and natural gas exports make up approximately 98 percent of the country’s exports (by value) and are the main driver of Algerian economic growth.

Both the oil and gas sectors have great development potential, encouraging investment that will ensure increased production capacity over the next few years, and Algeria will continue to be a major producer of gas in the Middle East, North Africa and South Asia (MENASA) region and a major hydrocenter supplier.

The meetings in Algeria form part of Dana Gas’s strategy to invest and acquire strategic positions in existing natural gas projects and related industries across the MENASA region, and to develop new opportunities in the region’s fast-growing natural gas sector.

Gross Profits grow to AED 307 million Total Assets up 59% to AED 10.86 billion Q4 Net Profits grow by 77% over previous quarter

Sharjah

30 Jan 2008

Dana Gas PJSC, the Middle East’s first and largest regional private sector natural gas company, has announced preliminary results for year ended 31 December 2007, posting revenue from oil and gas production of AED 1.036 billion for its first year of operations. The Gross Profit of the Group for the year was AED 307 million after adjusting for non cash depreciation and depletion of AED 241 million. EBITDA (Earnings before Interest, Depreciation and Depletion and Income Tax), reflecting cash flows from operations for the year, was AED 478 million. Net profit for the year was AED 111 million after finance charge of AED 153 million and income tax expense of AED 170 million.

The Company recorded a substantial growth in fourth quarter profitability with gross profit of AED 123 million and net profit of AED 39 million which were up 71% and 77% respectively from previous quarter.

Dana Gas oil & gas production operations in Egypt achieved a year-end exit production rate of 32.1 thousand barrels of oil equivalent per day, exceeding expectations as a result of the addition of production from the new discoveries in the Nile Delta, and revenues were further boosted by rising oil prices.

Total assets of Dana Gas also grew by 59% to AED 10.86 billion during the year from AED 6.84 billion the previous year, reflecting the asset acquisition of Centurion Energy, and a robust liquidity position as at year-end following successful completion of the US$1.0 billion (AED 3.67 billion) Convertible Sukuk issue last October, which was the Company’s maiden launch into the international capital markets.

“The year 2007 was a very important foundation year for Dana Gas, with major investments and important milestones achieved, highlighted by the acquisition of Centurion Energy, which launched us into gas exploration and production and a strong and growing position in Egypt, followed by the agreements in Northern Iraq for a major gas project to supply local power generation, and most recently the success of the $1 billion sukuk offering, which showed international confidence in the Company’s unique position in the growing Middle East gas sector,” said Mr Hamid Dhiya Jafar, Executive Chairman of Dana Gas.

“We look forward to seeing the benefits of these achievements from 2008 onwards, with the expected operational start-up in the coming months of two of our major projects – the UAE Gas Project, and the Kurdistan Project in Northern Iraq – combined with further drilling and expansion of our position in Egypt, and also new projects in other countries in the region. Dana Gas has come a long way in only its first two years, and is already a major player in the region’s energy sector, but this is just the beginning of the journey, and with the skills of our staff and the support of our shareholders, we look forward to continued growth and achievements in 2008 and beyond,” he added.

January 2007 saw the successful acquisition of Toronto and London-listed Centurion Energy by Dana Gas for $1.1 billion, launching Dana Gas into the exploration and production sector with important assets and hydrocarbon potential in Egypt and also Tunisia, and Sao Tome in West Africa. The Company then grew upon this position in April 2007 by signing important agreements in the Kurdistan Region of Iraq, to develop, process and transport natural gas and liquids from the two existing giant gas fields to supply urgently needed gas for the new power plants currently under construction. The project is nearly 70% complete and with gas production targeted by the middle of the year, is being implemented in partnership with Crescent Petroleum with a combined planned investment of US$ 660 million by the end of 2008.

During 2007, Dana Gas also announced a number of new gas discoveries in its concessions in Egypt including in particular Southern Egypt’s historic first ever commercial oil discovery from its first exploration well drilled in the Komombo Concession, re-named “Al-Baraka” (the blessing) by the Egyptian Oil Minister, and already brought onto first production.

Dana Gas has also continued to build its senior management team with the appointment of the Executive Director for Upstream Operations, Director of Business Development, and Financial Controller, as well as several other senior executive appointments during the year. The Group now employs over 400 people and has offices in the UAE, Egypt, Saudi Arabia, Bahrain, Canada, United Kingdom and the Kurdistan Region of Iraq.

​Sharjah
Jan 22 2008

Dana Gas, the first and largest regional private-sector natural gas company in the Middle East, with activities in the Middle East, North Africa and South Asia (MENASA) region, announced that it now officially owns a share in one of the blocks of an oil and gas rich offshore province in West Africa’s Gulf of Guinea, one of the richest hydrocarbon sources in the world.

The Nigeria-São Tomé and Príncipe Joint Development Authority (JDA) have formally approved the change in share ownership of Hercules/Centurion interest in the Joint Development Zone (JDZ) Block 4, to Dana Gas. Based upon this approval, Dana Gas currently holds 10% participating interest in Block 4.

The JDZ is an emerging hydrocarbon province with world class prospects and moderate risk, located in the vicinity of several of the deep water Nigeria giant oilfields. Block 4 covers an area of 212,000 acres (857 km²) and is situated 10 km southwest of the recently announced OBO-1 discovery. Block 4 is operated by Addax, which is actively pursuing various drill ship options to secure a slot to spud the first of three commitment wells prior to the end of 2008. Dana Gas’ share of the well cost is budgeted at US$ 6.1 million.

The 2008 Budget has been approved by the partners and final approval by the JDA was granted at the Management Committee Meeting held December 11, 2007 in Abuja , Nigeria .

“This is a major development for Dana Gas in Africa ,” said Rahid Saif Al Jarwan, Dana Gas General Manager. “We are very pleased that we have obtained the approval of JDA, which will have a significant impact on our business in the African Continent.”

The Nigeria-São Tomé & Príncipe Joint Development Zone (JDZ) is an area of overlapping maritime boundary claims that is being jointly developed by the two countries. The Heads of State of Nigeria and of São Tomé & Príncipe agreed on the joint development of resources in this region, with agreements ratified in February 2001.

Dana Gas, currently the sixth largest gas producer in Egypt , has recently exceeded 2007 production goals by producing 32 thousand barrels of oil per day equivalent, which continuous to bring significant development potential to Egypt.

Strategic partnership puts UAE at forefront of regional clean energy development

Partners to focus on reducing carbon footprint of oil and gas industry

Leads the way for emissions reduction in one of the most carbon intensive industry

Dubai
16 Jan 2008

Dubai Multi Commodities Centre (DMCC) and EcoSecurities announced today the signing of a strategic alliance agreement with Dana Gas PJSC and Crescent Petroleum of Sharjah, to jointly develop emissions reduction projects in the oil and gas sector, under the Kyoto Protocol’s Clean Development Mechanism (CDM).

Under the terms of the agreement, Dana Gas and Crescent Petroleum will identify projects across their regional oil and gas operations to reduce greenhouse gas emissions and improve energy efficiency. EcoSecurities and DMCC will facilitate the development of the CDM component of these projects, and create value by trading the Certified Emissions Reduction (CERs) credits thus generated.

In addition, DMCC and EcoSecurities will collaborate with Dana Gas and Crescent Petroleum to jointly identify opportunities to work with other energy companies and governments throughout the region, to reduce their greenhouse gas emissions.

Dana Gas is the largest private-sector natural gas company in the Middle East, while Crescent Petroleum has been a leading player in Middle East oil and gas exploration and production sector for over 35 years. DMCC is a strategic Government of Dubai initiative providing innovative concepts and industry-specific physical and market infrastructure products that facilitate the growth of the energy and commodities business in the Middle East. EcoSecurities is one of the world’s leaders in the business of sourcing, developing and trading carbon credits from greenhouse gas emission reduction projects.

Dana Gas and Crescent Petroleum’s strategic and technological expertise in the oil and gas sector combined with DMCC and EcoSecurities’ expertise in CDM project development is expected to create an extremely strong collective partnership. Together, the partners will be ideally placed to jointly pursue such projects, while also assisting other energy companies and regional governments seeking to reduce their carbon footprint.

“Emissions from the oil and gas sector form the largest part of the Middle East’s carbon footprint, and DMCC is delighted to partner with Dana Gas and Crescent Petroleum to reduce this impact,” said Ahmed Bin Sulayem, Executive Chairman, DMCC. “Such cooperation puts Dubai, Sharjah and the UAE at the forefront of the regional development and trading of carbon credits.”

“This strategic alliance will pioneer the development of CDM in one of the world’s most carbon intensive industries,” added Adrian Fernando, Chief Operating Officer of EcoSecurities. “It will encourage sustainability and efficiency throughout operations across the region.”

“Crescent Petroleum is firmly committed to the Kyoto Principles and to playing an active role in benefiting our environment through a proactive approach to clean emissions solutions,” concluded Badr Hamid Jafar, Executive Director of Crescent Petroleum. “Our partnership with DMCC and EcoSecurities brings together a powerful consortium to achieve this important aim across the Middle East oil and gas sector.”

Rashid Saif Al-Jarwan, General Manager of Dana Gas, added that: “Since its establishment, Dana Gas has aimed to conduct its operations to international standards, and we involved the World Bank Group in devising our corporate environmental policies. This partnership in the area of CDM is the logical next step, applying market techniques to enhance the environmental benefits of major energy projects in our region.”

In June 2007, DMCC and EcoSecurities signed a memorandum of understanding to promote CDM projects and generate emission reduction credits within the UAE, while raising the profile of Dubai as a regional centre for carbon emission reductions and trading.

Ahmed Al-Arbeed signs on as Executive Director

Sharjah
Jan 14 2008

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, has announced that Mr Ahmed Rashid Al-Arbeed, former Chairman and Managing Director of Kuwait Oil Company (KOC), has joined the management team of Dana Gas as Executive Director, Upstream.

Mr Al-Arbeed has a Bachelors degree in Petroleum Engineering and Natural Gas from Pennsylvania State University in 1977, and over 30 years of experience in the international petroleum industry. Previously he was Board Member of the Kuwait Petroleum Corporation (KPC), Chairman and Managing Director of the Kuwait Foreign Petroleum Exploration Co. (KUFPEC), Managing Director of the Kuwait Project for re-introducing international oil companies to develop Kuwaiti oil fields, and Managing Director of the Privatization and R&D Programs of KPC, as well as membership of the Society of Petroleum Engineers (SPE), the Kuwait Engineering Society and the Association of International Petroleum Negotiators (AIPN).

During his appointment at KOC, one of the largest oil companies in the world, Mr Al-Arbeed was responsible for the entire oil and gas production of the state of Kuwait, and possesses invaluable experience gained from his distinguished career. He has been a member of the Dana Gas Board of Directors since the company’s inception, and will continue to serve in this capacity in addition to his new executive position.

“I am proud to have been involved with Dana Gas since its establishment, and have seen it grow rapidly and professionally as an international energy company, with activities across the region,” said Mr Ahmed Al-Arbeed on this occasion. “I am excited about joining the exceptional Dana Gas management team – led by Executive Chairman Hamid Jafar – as Executive Director, and I look forward to contributing towards the company’s growth strategy to deliver value for our shareholders.”

Mr Hamid Jafar, Executive Chairman of Dana Gas, said, “Dana Gas is delighted to welcome Mr Al-Arbeed aboard as Executive Director, and we are confident that he will add enormous value to the company as a senior member of the executive team in the same professional manner that he has as a member of the Board of Directors, and which he delivered to the various petroleum organizations he has served throughout his illustrious career in the Kuwaiti petroleum sector and internationally.”

“We are also pleased to welcome Mr Rashid Saif Al-Jarwan, General Manager of Dana Gas, to the Board of Directors,” added Mr Jafar. “Mr Al-Jarwan has made a great contribution to the company in his role as General Manager, and the Board of Directors welcomes him now as an executive member in recognition of his contribution, and in accordance with global best practices in corporate governance.”

Mr Al-Jarwan has a B.Sc. degree in Petroleum and Natural Gas Engineering from Pennsylvania State University. Before joining Dana Gas two years ago he worked for 28 years at the Abu Dhabi National Oil Company (ADNOC) and its group of companies in the oil and gas business. There, he had technical, operational, commercial and executive responsibilities, including eight years of experience as the General Manager of the Abu Dhabi Gas Liquefication Co. (ADGAS).

In addition, Mr Al-Jarwan was the Deputy General Manager of the Abu Dhabi Company for Onshore Oil Operations (ADCO) and served on the Board of Directors of the National Petroleum Construction Company (NPCC), Ruwais Fertilizer Industries (FERTIL), and the National Drilling Company (NDC) in Abu Dhabi.

New discoveries help to exceed year-end production expectations

Sharjah
Jan 6 2008

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, has announced an exit rate of 32 thousand barrels of oil per day equivalent for 2007, exceeding company expectations. The early production from two new discoveries has contributed substantially to the favourable production rate and brings significant development potential to Egypt.

The Al Baraka discovery well has produced the first oil ever in Upper Egypt. In the short period of four months from discovery to first production, the first shipment of oil was delivered to the Assyut Refinery on December 27. The discovery was hailed by the Egyptian Petroleum Minister, H.E. Eng. Sameh Fahmy, who visited the site and named the new field “Al-Baraka” (meaning “blessing” in Arabic). The Minister was accompanied by General Samir Yousif, Governor of Aswan; Hassan Akl, the Chairman of the State Company Ganoub Al-Wadi Holding Petroleum Company (Ganope); and Dr. Hany Elsharkawi, Dana Gas Egypt Country Director.

The Dabayaa-2 delineation well was drilled on the eastern side of the West Manzala concession in the Nile Delta to appraise the Dabayaa-1 discovery well in the Lower Abu Madi Sandstone formation. A new discovery was made in the Upper Abu Madi formation, and the well has added over eight million cubic feet of gas per day and 240 barrels of condensate per day to Dana Gas’s production.

Dr. Hany Elsharkawi, Dana Gas Egypt Country Director, expressed the Company’s pride in producing the first oil in Upper Egypt and the rapid hook-up of the Dabayaa-2 well, saying: “We are excited about our recent successes, which confirm our confidence in the development opportunities in both the Upper Nile and Lower Egypt concessions”.

Rashid Saif Al Jarwan, General Manager of Dana Gas, added: “The year 2008 will be a busy one for Dana Gas, with an active exploration and drilling program continuing in Egypt, as well as the startup of our major projects in the UAE and Northern Iraq. We are also actively evaluating a number of other interesting opportunities in the Middle East and North Africa.”