80% increase Y-o-Y in Net Profit from core operations
Highlights
Sharjah, UAE; 12 February 2020: Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, today announced its Preliminary Unaudited Financial Results for the full year ended 31 December 2019.
The Company reported a Net Profit of $157 million (AED 575m) in 2019 compared to a loss of $186 million (AED 682m) in 2018. Net Profit from core operations, on a like-for-like basis, excluding one off impairment, earnout and deferred income, increased by 80% to $115 million (AED 422m) compared to $64 million (AED 235m) in 2018.
The increase in profitability in 2019 was supported by a significant increase in production from the KRI, which added $40 million which helped offset partly the impact of lower prices. In addition, during the year, the Company recognised earn out and deferred income entitlements which contributed positively to the bottom line.
Revenue was $459 million (AED 1.68bn) in 2019 compared to $470 million (AED 1.72bn) in 2018 due to lower realised prices and lower production in Egypt partly offset by increase in production in KRI.
Following these results, the Company’s book value per share stands at AED 1.38 as of year-end 2019.
Dr Patrick Allman-Ward, CEO of Dana Gas, said:
“Dana Gas registered strong performance metrics in 2019 underscoring its increasing financial resilience in what has been a challenging year for the oil industry. Net profit from our normal operations nearly doubled to $115 million, supported by an increase in production from the Kurdistan Region of Iraq despite the drop in realised prices. The strong set of results are supportive of a dividend payment, subject to necessary approvals.”
“Looking ahead, the company’s expansion plan in the KRI is on schedule, with delivery from the first gas train expected in 2022. This will raise production to 650 MMscf/d from the current rate of circa 400 MMscf/d. Over 90% of Dana Gas’s proven reserves are located in the KRI, so we will continue our focus here as we look to delivering on this vast potential.”
Operations & Production
In H2 2019, the Company launched a strategic review of its assets in Egypt as part of a process to optimise its portfolio. The Company has since received numerous bids and is finalising the technical and commercial evaluation, with a final decision due by the end of March. Other developments that took place in 2019 included the drilling of the deep-water Merak-1 well, Block 6, in Q2 2019, on schedule and under budget. The well, unfortunately, did not encounter commercial hydrocarbons. The Block remains highly prospective with three other material prospects identified and earmarked for drilling.
In the KRI, Pearl Petroleum embarked and completed two appraisal wells and 6 workovers in Khor Mor and one appraisal well in Chemchemal. Pearl has also been progressing with its expansion plans in Khor Mor which will take production up to 650 MMscf/d in Q1 2022, and 900 MMscf/d in 2023.
Group production rose 5% during 2019, averaging 66,200 boepd versus 63,050 boepd in 2018. Production was boosted by an 18% jump in output from the KRI, which reached 31,500 boepd. This offset drops in production from Egypt, which fell 4% to 33,000 boepd versus 34,500 boepd in 2018, and the UAE, which averaged 1,000 boepd in 2019.
Liquidity and Collections
The Company’s cash balance at year-end stood at $425 million, a 4% increase from $407 million at the end of 2018.
The Group collected a total of $285 million in 2019(2018: $334m) with Egypt, KRI and UAE contributing $138 million (2018: $208m); $139 million (2018: $114m) and $8 million (2018: $12m) respectively.
In KRI, regular payments have been received, and there are no outstanding receivables as of year-end.
In Egypt, the Company successfully reduced its receivables to $111 million (AED 407m). This represents a 21% reduction compared to 2018 year-end balance of $140 million (AED 513 million).
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About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 66,200 boepd in 2019. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen, Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
Sharjah, UAE; 24 December 2019: Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, has received a one-off $42 million (AED 154 mm) dividend payment from Pearl Petroleum Company Limited (‘Pearl Petroleum’) in the Kurdistan Region of Iraq (“KRI”).
The payment has been distributed as a dividend by Pearl Petroleum (35% ownership by Dana Gas). The payment follows the release of an additional $120 million out of the $400 million that was paid by the Kurdistan Regional Government (“KRG”) to the consortium under a Settlement Agreement reached in August 2017 and that was held in a Pearl Petroleum bank account pending financing for the expansion of the Khor Mor field.
The latest dividend payment which comes in addition to the regular dividends from operational cash flows brings the total dividends received by Dana Gas from the KRI in the year to date to $121 million (AED 443 mm) in line with 2018 dividends.
Dr Patrick Allman-Ward, CEO, Dana Gas, commented:
“Collecting the payments from sales of gas and liquids on time and receiving these dividends provides us and our Partners with the confidence to push forward with our expansion plans. We hope to soon move forward with the construction phase for the next 250 MMscf/d gas train. This will raise production by over 60% when fully operational in 2022, and is expected to add between $175 and $200 million annually to our top line. It will also further boost local power generation capacity.”
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About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 63,050 boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com.
Communication & Investor Relations Contact
Mohammed Mubaideen
Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, announced that in the first nine months of 2019 collections in Egypt, the UAE and from its share of Pearl Petroleum Company Limited’s sales in the Kurdistan Region of Iraq (KRI), increased 16.7% year on year to $230 million (AED 844m).
Dana Gas, which owns a 35% stake in Pearl Petroleum, saw its share of sales of condensate, LPG and gas in the KRI jump 52% to $118 million in the nine-month period from $77 million in the same period the previous year. Dana Gas received cash dividends of $68.3 million from Pearl Petroleum over this period.
Meanwhile, the collections from Dana Gas Egypt were $105 million during the period, in line with the $111 million received in the same period of 2018 whilst collections from the Company’s Zora gas field in the UAE stood at $7.3 million.
Dr Patrick Allman-Ward, CEO of Dana Gas, said:
“We are pleased to record higher collections over the first nine-months of the year in the Kurdistan Region of Iraq, due primarily to an increase in production and regular payments from the government. Our overall collections are higher at $230 million, and our strong in-country relationships have continued to benefit our overall business performance. We are committed to operating all our assets to maximise production and value for all our stakeholders.”
Pearl Petroleum is boosting production in the KRI, where 25% of the region’s power needs remain unmet and the demand for power is expected to outstrip supply in the medium and long-term. The consortium operates world-class gas fields in the KRI and currently enables the power generation of three quarters of the area’s official electricity production. It signed a 20-year gas sale agreement with the KRG earlier this year that will facilitate the production and sale of an additional 250 MMscf/d of gas. Pearl Petroleum’s expansion plan will see output increase to 650 MMscf/d in 2022, and then to 900 MMscf/d by 2023 from the current 400 MMscf/d.
Dana Gas’s share of the proved plus probable (2P) hydrocarbon reserves at Pearl Petroleum Khor Mor and Chemchemal Fields in the KRI increased by 10% following the recent certification of reserves by its independent external reserves auditor, Gaffney Cline Associates. Dana Gas’s total share is equivalent to 1,087 million barrels of oil equivalent, up from 990 million barrels of oil equivalent when Gaffney Cline first certified the fields in April 2016.
By 2040, natural gas demand in the Middle East and North Africa region is expected to grow 40% and oil demand will increase by 10 million barrels a day, according to industry estimates. To help meet that increase in energy demand, projects valued at $238 billion are being executed in the next 20 years.
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About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 63,050boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen
Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
Dana Gas reports a 483% increase in H1 2019 Net Profit to $140 million (AED 513mm)
Highlights
Sharjah, UAE; 7 August 2019: Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, today announced its Financial Results for the first half ended 30 June 2019.
The Company’s H1 2019 net profit jumped 483% to $140 million (AED 513mm) in H1 2019 compared with $24 million (AED 88mm) in H1 2018. This was mainly due to the recognition at fair value of certain reserve based earn out entitlements amounting to $71 million. These are due from certain shareholders in Pearl Petroleum as considerations linked to the original share sale agreements, which were contingent upon proving up additional reserves in Pearl Petroleum which were confirmed by the recent independent reserves report by Gaffney Cline.
Excluding the reserve based earn outs of $71 million, net profit from core operations increased by 187% to $69 million (AED 253mm) versus $24 million (AED 88mm) in H1 2018. This was principally due to an increase in KRI production post debottlenecking which added $20 million (AED 73mm), Sukuk profit savings and reimbursement of arbitration costs, reflecting the Company’s solid operational performance.
Revenue for the first six months of the year advanced 3% to $242 million (AED 887mm) as increased production in the KRI added $27 million (AED 99mm) to the topline which was partially offset by $15 million (AED 55mm) in reduced revenue due to price declines and $5 million (AED 18mm) due to lower production in Egypt.
Dr Patrick Allman-Ward, CEO of Dana Gas, commented:
“Dana Gas’s net profit of $140million in the first half 2019 is a clear reflection of the Company’s strong operational and financial performance with strongly rising production and revenues from the KRI. An independent certification exercise has shown a 10% increase in the Company’s 2P reserves in the KRI to over 1 billion boe. This external reserve auditor’s report confirms our view that the Khor Mor and Chemchemal Fields are world class and are probably Iraq’s biggest gas fields.”
Production & Operations
The Company’s average production in H1 2019 was 68,200 boepd, a 7% increase as compared with 63,600 boepd in H1 2018. Output in the KRI was up significantly to 32,400 boepd in H1 2019 compared to 26,100 boepd in H1 2018, while Egypt output was 4% lower at 34,100 boepd during the same time frame.
Liquidity and Collections
The Company’s collections during H1 2019 were excellent. In the KRI, the Company billed $81 million (AED 297mm), and the full amount has been paid. The Company also received a $49 million (AED 180mm) dividend from Pearl Petroleum in H1 2019 compared to $44 million (AED 161mm) in H1 2018. In Egypt, we billed $58 million (AED 213mm) and collected $81 million (AED 297mm) in payments, reducing our receivables to $117 million (AED 429mm). This represents a 42% drop compared to same period last year and at its lowest position since 2011.
Company’s cash position is $404 million (AED 1.5bn) as at 30 June 2019, little changed from the $407 million (AED 1.5bn) in FY 2018, and includes a dividend payment of $105 million (AED 384mm) made in May and ongoing Sukuk profit payments.
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About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 63,050 boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen,
Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
Dana Gas share of collections rose to $80 million (AED 293 mm) in H1 2019 versus $46 mm in H1 2018
Sharjah, UAE; 29 July 2019
Dana Gas PJSC (the “Company”), the Middle East’s largest regional private sector natural gas company, announces that its share of Pearl Petroleum Company Limited’s (‘Pearl Petroleum’) collections from the sale of condensate, LPG and gas in the Kurdistan Region of Iraq (KRI) rose 74% in the first half of 2019.
Dana Gas, which owns a 35% stake in Pearl Petroleum, saw its share of the collections increase to $80.0 million (AED 293 mm) in the first half compared to $46 million (AED 169 mm) the first half of 2018. As of today.
Dr Patrick Allman-Ward, CEO, Dana Gas, said: “We are thankful for the Kurdistan Regional Government’s prompt payment of receivables. Our flourishing partnership will bring about tangible benefits for the region, including the creation of more jobs and greater confidence in its hydrocarbon sector, which will ensure a flow of revenue into much-needed infrastructure. We look forward to strengthening our collaboration with the Kurdistan Regional Government in the years to come.”
—Ends—
About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 63,050boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen
Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
Highlights
Sharjah, UAE; 28 July 2019
Dana Gas PJSC (the “Company”), the Middle East’s largest private sector natural gas company, announces that its share of the proved plus probable (2P) hydrocarbon reserves at Pearl Petroleum Company’s (“Pearl”) Khor Mor and Chemchemal Fields in the Kurdistan Region of Iraq (KRI) have increased by 10% following the recent certification of reserves by Gaffney Cline Associates (‘GCA’).
2P Reserves Upgrade
The independently audited report, prepared by Gaffney Cline on behalf of Pearl Petroleum, showed that the total share for Dana Gas (35% shareholder in Pearl Petroleum), is equivalent to 1,087 million barrels of oil equivalent (MMboe), up from 990 MMboe when GCA first certified the fields in April 2016. This confirms that the fields located in the KRI could be the biggest gas fields in the whole of Iraq. The reserves were boosted in part by the booking of oil reserves in the Khor Mor Field for the first time.
GCA’s most recent report confirmed that Dana Gas’s share of the Khor Mor and Chemchemal 2P reserves was 4.4 trillion cubic feet gas (2016: 5.3 Tcf), 136 million barrels of condensate (2016: 109 MMbbls), 13.3 million metric tonnes LPG and 18 MMbls of oil, the equivalent of 1,087 MMboe, as compared to 990 MMboe in April 2016.
Dr Patrick Allman-Ward, CEO of Dana Gas, said:
“The Gaffney Cline report has independently confirmed Dana Gas’ 2P reserves in our KRI assets at over 1 billion barrels of oil equivalent and our belief that the Khor Mor and Chemchemal Fields will most likely be the biggest gas fields, not just in the Kurdistan Region Iraq, but the whole of Iraq, making them world-class assets. It is also satisfying to see that our auditors have formally booked oil reserves for the first time in Khor Mor. We believe that this is just the tip of the iceberg confirming our estimate of oil resource potential of over 7 billion barrels. These additional resource declarations will underpin our future development plans which will provide a reliable source of energy to meet the needs of electricity generation as well as industrial development in the region.”
Future Development
Earlier in the year, Pearl Petroleum signed a 20-year gas sale agreement with the Kurdistan Regional Government (‘KRG’) that will facilitate the production and sale of an additional 250 MMscf/d of gas. Pearl Petroleum’s expansion plan will see output increase to 650 MMscf/day in 2022, and then to 900 MMscf/day by 2023 from the current 400 MMscf/day. With the price of oil ranging between $60 to $70 per barrel, each of these two new gas production trains will generate between $175 to $200 million to the Company’s share of revenue and project’s cash flows per annum.
—ENDS—
About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 63,050 boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen, Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
Company receives $48 million (AED 177 m) from Egypt in June
Sharjah, UAE; 30 June 2019: Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, has received payments of $48 million (AED 177 million) from its operations in Egypt in June. These collections comprise $38 million in payments from the government (of which $30 million as Dana Gas’ share of the industry payment) and $10 million from the sale of the second El Wastani condensate shipment in 2019.
The industry payment is part of the Government’s ongoing efforts to reduce its overdue receivables position to zero by the end of 2019. Since 2018 the Company has continued to make steady progress in reducing its outstanding balance of overdue receivables. Total receipts from Egypt in 2018 reached $208 million, reducing the total receivables sum to $ 140 million by year end, the lowest level since January 2011. The Company has received a total of $78 million in payments during H1 2019, further reducing the Company’s receivables by 38% to $125 million.
Dr Patrick Allman-Ward, CEO of Dana Gas, commented:
“Receiving $38 million from the Egyptian Government in June shows steady progress for the Government in achieving its target of paying all the overdue receivables by year-end. These payments will provide funds to execute our current onshore work-over programme and contribute towards the costs of drilling Merak-1, our deep-water exploration well in Block 6. Drilling operations are progressing well and we are expecting to have results in the third quarter this year.”
Dana Gas commenced drilling operations on 20 May 2019 at its Merak-1 well, offshore Egypt. The location is in 755 meters of water in the North El Arish concession (Block 6). This block is lies in the Eastern Mediterranean (Levantine) Basin where other world-class giant natural gas discoveries have been made in recent years.
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About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 63,050 boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen, Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
Highlights
Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, today announced it has commenced drilling operations on 20 May at its Merak-1 well, offshore Egypt. The location is in 755 meters of water in the North El Arish concession, also known as Block 6. This block is in the Eastern Mediterranean Basin where other world-class giant natural gas discoveries have been made in recent years.
The Merak-1 well will be drilled with the 6th generation dynamically positioned drillship “Tungsten Explorer”, on hire from ADVantage Drilling Services SAE – a JV between ADES International and Vantage Driller II Co (a subsidiary of Vantage Drilling). The well is planned to take approximately 70 days to drill.
Prospective resources to be added from this well in the case of exploration success could reach 4 trillion cubic feet (Tcf) of natural gas. The discovery of a world-class resource of this size could easily support an offshore field development. If Merak-1 is successful, additional exploration and appraisal drilling will follow.
Dana Gas purchased the Centurion assets onshore the Nile Delta in Egypt in 2007. Since then, 48 exploration wells have been drilled with a 67% success rate resulting in 25 new pool discoveries. Proved plus Probable reserves were increased by over 120% and production by 50%. Significant exploration potential remains in deep, Early Miocene prospects in the existing development leases and in El Mataraya Onshore which is a joint venture block operated by BP, where an exploration well is planned to be drilled later this year. Dana Gas production from Egypt is currently over 34,000 boepd.
Dr Patrick Allman-Ward, CEO of Dana Gas, commented:
“We have commenced an exciting exploration program in our Egypt Block 6 Concession Area. Until now, all of our Egyptian operations have been onshore the Nile Delta. Whilst we continue to optimize production from our 14 existing fields and explore new prospects in the Nile Delta region, the potential addition of new world class gas resources offshore presents an opportunity for significant growth in our Egypt business that would be transformative for Dana Gas.”
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About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 63,050 boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen
Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
Dana Gas PJSC (the “Company”), the Middle East’s largest regional private sector natural gas company, is pleased to announce its inclusion in the Morgan Stanley Capital International (MSCI) for Global Small Cap Indexes, effective 27 May 2019.
The MSCI Emerging Markets Small Cap Index captures small-cap representation across 24 Emerging Markets countries. With 1,571 constituents, the index covers approximately 14% of the free float-adjusted market capitalisation in each country. The small cap segment tends to capture more local economic and sector characteristics relative to larger Emerging Markets capitalization segments. Dana Gas has joined the benchmark which includes 23 emerging markets countries, including the United Arab Emirates.
Patrick Allman Ward, CEO of Dana Gas, commented:
“The inclusion of Dana Gas in MSCI’s Emerging Markets Small Cap Index puts the Company firmly on the radar of institutional investors. Gaining representation in the index is testament to the progress we have made over the last year, specifically with regard to the successful Settlement Award in Kurdistan Region of Iraq and also the two completed projects in 2018 which increased our production substantially and will add $50 million to our revenue this year.”
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About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 63,050 boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen
Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
Highlights
Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, today announced its financial results for the first quarter ended 31 March 2019.
Net Profit was up 150% in Q1 2019, reaching $35 million (AED 128 mm) as compared to $14 million (AED 51mm) in Q1 2018. The higher Net Profit was principally due to an increase in KRI production which added $14 million and offset the impact of lower production in Egypt and lower realised prices. Furthermore, a saving of $10 million of Sukuk profit payments was recognised during the quarter following the successful Sukuk restructuring and buyback programme.
Revenue remained flat at $119 million (AED 436 mm) as compared to $120 million (AED 440 mm) in Q1 2018 despite the decline in realised prices and production decline in Egypt, which was offset by a significant increase in output in KRI.
Dr Patrick Allman-Ward, CEO of Dana Gas, commented:
“We have started the year as we left off in 2018 with a strong operational focus and good financial results. Our revenues and cash-flow are robust and we more than doubled our net profit to $35 million this quarter. Operationally, we have signed a 20-year gas sales agreement with the KRI which enables us to go-ahead with our expansion plans to increase our production from the current 400 to 650 MMscf/d by 2021. In Egypt, we are moving ahead with plans to spud the high-impact, offshore Merak well, which holds a potential 4 to 6 Tcf of gas and if successful will be a ‘game-changer’ for the Company.”
Production & Operations Group production in Q1 averaged 68,700 boepd, a 6% increase as compared with 65,000 boepd in Q1 2018. The first quarter production increase was led by the KRI, which leapt 24% to 32,750 boepd from 26,300 in Q1 2018, as a result of the debottlenecking project.
The Company continues to pursue its short and mid-term growth projects. In Egypt, Dana Gas contracted for a drillship to drill the high-impact multi-Tcf Merak well, Block 6, offshore Egypt. The well is set to spud in May, and drilling should take around 60-days and so results should be known in the third quarter 2019.
In the KRI, Pearl Petroleum, the company consortium led by Dana Gas and Crescent Petroleum, signed a new 20-year Gas Sales Agreement in February to allow Pearl Petroleum to go-ahead with its expansion plan, that will add a further 250 MMscf/d, or c. 60%, to the consortium’s output; and will provide feedstock to boost much needed domestic electricity generation. The first gas train is due to come on-stream in 2021 and is part of the $800 million expansion plans underway to ultimately raise production to 900 MMscf/d by 2022. Pearl Petroleum is also undertaking a multi-well drilling programme at the Khor Mor and Chemchemal Fields.
Sukuk, Liquidity and Collections
In early 2019, the Company completed the buyback of $133 million of Sukuk. The buyback has reduced the size of the Sukuk from $530 million to $397 million. The Company has satisfied the commitment to buyback $100 million of Sukuk following the consensual restructuring of the Sukuk in 2018 and has also met the threshold amount of outstanding Sukuk which allows the Company to continue to pay the Sukuk profit rate at 4% per annum rather than increase to 6% per annum.
With regard to collections, in the KRI, the Company billed $40 million and the full amount has been paid. In Egypt the Company billed $30 million and collected $21 million. The receivable position in Egypt has crept up slightly to $149 million from $140 million as at 31 December 2018.
At their last meeting Shareholders approved a cash dividend for the second year in a row. This 5.5 fils dividend is a 10% increase on last year’s dividend and will be distributed by mid-May.
—Ends—
About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 68,700 boepd in Q1 2019. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen
Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
Dana Gas PJSC (“Dana Gas” or the “Company”) wishes to inform the market that the Company, together with Crescent Petroleum Company International Limited (“Crescent Petroleum”), has today received an award dated 10 May 2019 from the London Court of International Arbitration (“LCIA”) in the arbitration initiated against MOL Group (‘MOL’) in September 2017. The Tribunal’s award is a welcome and complete vindication for Dana Gas and Crescent Petroleum, finding that they as Claimants were “overwhelmingly successful in this arbitration” and ruling in their favour on all key points while awarding them 100% of their external legal costs.
The 2017 Arbitration against MOL arose out of the 2017 settlement of the long running dispute between the Company, Crescent Petroleum and Pearl Petroleum Company Limited (“Pearl”) and the Kurdistan Regional Government of Iraq (the “KRG”) on beneficial terms which paved the way for immediate development of the world class resources in Khor Mor and Chemchemal to maximize their potential for mutual benefit as well as the benefit of the people of the Kurdistan Region and all of Iraq.
As previously announced, the 2017 Settlement Agreement with the KRG was welcomed and endorsed by 90% of Pearl’s Directors and Shareholders alike (Dana Gas, Crescent Petroleum, OMV and RWE, together holding 90% of the shares of Pearl). Unfortunately, MOL (a 10% shareholder of Pearl) unreasonably sought to link its endorsement of the settlement to renegotiating the payment terms for its entry into Pearl back in May 2009 (namely deferred payment obligations) and then complained about the settlement as well as Dana Gas’s and Crescent Petroleum’s handling of it. MOL expressed dissatisfaction with the settlement outcome as compared to the alternative of pursuing a final litigation and enforcement outcome against the KRG, and subsequently issued a Default Notice under the Parties’ Joint Venture Agreement seeking compensation for the losses it purported to have incurred as a result of an allegedly deficient settlement.
Accordingly, Dana Gas and Crescent Petroleum were forced to initiate the 2017 arbitration in LCIA in order to obtain formal declarations to resolve these matters.
In dismissing all of MOL’s claims and finding that the Default Notices issued by MOL were invalid, the Tribunal considered that MOL’s focus on linking waiver of its deferred payment obligations in exchange for endorsing the settlement was ‘illegitimate’.
Additionally, in respect of MOL’s contention that pursing a final litigation and enforcement against the KRG was preferable to the settlement, the Tribunal determined that “it would … have been clear to any reasonable director who applied his mind to the clear choice with which he was faced on 30 August 2017 that, from Pearl’s perspective: the deal on the table was unquestionably better than no deal; and the risk of no deal was too great for the opportunity to settle to be passed up;” and the Tribunal further concluded that the MOL appointed Director to Pearl “failed in this duty to act in the best interests of Pearl “. This MOL appointed Director has since resigned from the Board of Pearl.
The Tribunal therefore found that there has been no Event of Default and therefore MOL’s Default Notice was invalid and so MOL’s counterclaims fail and are hereby dismissed. MOL was also ordered to pay all the costs of the arbitration, and 100% of the external legal costs of Dana Gas and Crescent within 30 days.
With this comprehensive vindication for Dana Gas and Crescent Petroleum, together the Operators of the Pearl Joint Venture, the Operators hope that all the parties to the Venture will provide their full support to execute the exciting development projects that lie ahead to develop these world class assets for the benefit of the partners, the Kurdistan Region and all of Iraq.
—Ends—
About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 63,050 boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen,
Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
Pearl Petroleum signs 20-year Gas Sales Agreement in Q1 2019
Dana Gas PJSC (the “Company”), the Middle East’s largest regional private sector natural gas company, announces that during Q1 2019, Pearl Petroleum Company Limited (‘Pearl Petroleum’) has received $112 million (AED 411mm) from the sale of condensate, LPG and gas in the Kurdistan Region of Iraq (KRI).
Dana Gas is a 35% shareholder in Pearl Petroleum and accordingly, its share of such receipts by Pearl Petroleum is $39 million (AED 143mm). This presents a 117% increase compared to the Company’s Q1 2018 share of collections which stood at $18 million. As of today, Pearl Petroleum has no overdue receivables in the KRI.
Dr Patrick Allman-Ward, CEO, Dana Gas, said:
“We have had a very positive start to year in the KRI. Our debottlenecking project which we completed in October 2018 has increased our production output by 30% to 400 MMscf/d. We have begun to see the impact of the additional production on our Q1 collection, which has doubled.”
In February of this year, Pearl Petroleum signed a new 20-year Gas Sales Agreement (GSA) with the Kurdistan Regional Government (KRG) to enable production and sales of an additional 250 MMscf/d. The Consortium aims to bring this production on-stream by 2021 as part of their expansion plans to raise output from the current 400 MMscf/day to 650 MMscf/day in 2021, and then to 900 MMscf/day by 2022.
—Ends—
About Dana GasDana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 63,050boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen
Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
Dana Gas PJSC (the “Company”), the Middle East’s largest regional private sector natural gas company, announced its average production for Q1 2019 has increased by 6% year-on-year to 68,700 boepd from 65,000 boepd in Q1 2018.
The first quarter production increase was led by the KRI, which leapt to 32,750 boepd in Q1 2019 from 26,300 boepd in Q1 2018. This increase was principally due to additional production from the completed debottlenecking project that came on-stream in October 2018 and took gas production in the KRI from 300 MMscf/d to 400 MMscf/d, an increase of over 30%.
On a quarter by quarter comparison, Q1 2019 production grew by 5% from Q4 2018, reflecting the increase in production from the KRI and supported by having brought the Balsam-8 well in Egypt on-stream in Q4.
Dr Patrick Allman-Ward, CEO, Dana Gas, said:
“The two major growth projects completed in 2018 – the debottlenecking project in the KRI and the Balsam-8 well in Egypt – have proven to be materially value accretive both operationally and financially. Our production numbers are up 6% in the first quarter 2019 and we expect this increase in production to have a positive impact on the Company’s revenues since we are now realising gas sales in the KRI and we will be benefiting from the steady increase in oil prices since Q4 2018.”
—Ends—
About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 63,050boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen
Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
Dana Gas PJSC (the “Company”), the Middle East’s largest regional private sector natural gas company, has received a payment of $19 million (AED 70 million) from its operations in Egypt. This payment is made up of a $10 million payment from the Government in Egyptian pounds and $9.0 million from the sale of a shipment of El Wastani condensate.
The payment is part of the Government’s ongoing efforts to reduce their receivables position to zero in 2019. In 2018, the Company made good progress in reducing its outstanding balance of overdue receivables. As at 31 December 2018, the net receivables position reduced by 39% to $140 million, the lowest level since 2011.
—Ends—
About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 63,050boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen
Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
Dana Gas PJSC (“Dana Gas” or the “Company”) provides the following market update.
In connection with Dana Gas’s 4% Nile Delta Sukuk Ltd Certificates (“Sukuk”) issued by Nile Delta Sukuk Ltd (“Issuer”) the Company has now bought back a total of $133 million Sukuk. The buyback has reduced the size of the Sukuk from $530 million to $397 million and was achieved at an average price of 92.1 cents.
The Company has now satisfied the commitment to buyback c. $100 million of Sukuk following the consensual restructuring of the Sukuk in 2018 and has also met the threshold amount of outstanding Sukuk which allows the Company to continue to pay the Sukuk profit rate at 4% pa rather than increase to 6% pa. The Company will save a total of $21 million by buying back the total of $133 million of its Sukuk in the market below par and by future profit rates savings on those bought back Sukuk. In addition, by maintaining the profit rate at 4% pa the Company will make a further saving of $8 million. The total saving is therefore expected to be $29 million, which is in addition to the significant saving of $35 million per annum achieved at the time of the restructuring. The Company will continue to act opportunistically with regard to further Sukuk buyback.
In addition, the Board of Directors has recently approved the Board recommendations to the Company’s AGM, which included a proposal for a share buyback and accordingly shareholders’ approval will be sought at the Company’s General Meeting in April. The Company will seek permission to repurchase up to c. 690 million of Dana Gas shares on Abu Dhabi Exchange, which would correspond to 10% percent of the Company’s total share capital. The Board of Directors believes the Company is currently undervalued and that a share buyback program represents a way of enhancing shareholder value.
The Board of Directors of Dana Gas has also recently announced its intention to continue with its stated dividend policy. It will also therefore propose to the General Meeting of Shareholders the payment of a cash dividend of 5.5 fils per share, a 10% increase compared to the 2018 dividend.
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About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 63,050boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen
Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
Mr. Saif Sayyah Al Mansouri
Head of Listed Companies Department
Abu Dhabi Securities Exchange
Greetings
Subject: Dana Gas disclosure on incremental gas production in KRI
With reference to your letter dated 07/03/2019, please be informed that the signed Gas Sales Agreement (GSA) is in relation to the second Phase of expansion in the KRI, that aims to increase Pearl Petroleum’s (Dana Gas 35%) gas and condensate production by 63% from 400 mmscf/d and 15,000 bbl/d to 650 mmscf/d and 25,000bbl/d respectively.
The financial impact of this expansion is directly related to the oil price. With oil price ranging between $60-$70 per barrel we expect the new phase of expansion to add $175-$200 million (AED 641-733 million) to Dana Gas share of revenues and project’s cash flows per annum. The dividends from Pearl to Dana Gas will be dependent on the investment program and operating cost at Pearl.
The financial impact of this transaction will come into effect when the construction of the new capacity is completed in 2021 and the incremental production starts to flow.
The Company and its partners are also planning to further expand production by an additional 250 mmscf/d in 2022 which is expected to have a similar financial impact and will take production of gas and condensate up to 900 mmscf/d and 35,000bbl/d respectively.
Kind regards
Patrick Allman-Ward
Chief Executive Officer
Pearl Petroleum Company Limited (“Pearl Petroleum”), the Consortium led by Crescent Petroleum and Dana Gas of the UAE, has signed a new 20-year Gas Sales Agreement (GSA) with the Kurdistan Regional Government to enable production and sales of an additional 250 MMscf/day that the Consortium aims to produce by 2021 as part of their expansion plans in the Kurdistan Region of Iraq (KRI) in order to boost much needed local domestic electricity generation.
Pursuant to the Settlement Agreement reached between the parties in August 2017, this new gas sales agreement was signed on 19th February 2019 by Dr. Ashti Hawrami, Minister of Natural Resources on behalf of the Kurdistan Regional Government, and Mr. Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, on behalf of Pearl Petroleum. All approvals for the agreement, including by the the Kurdistan Region Council for Oil & Gas Affairs and the Board of Pearl Petroleum, have since been granted, with project work now under implementation.
The Kurdistan Gas Project was established in 2007 as Dana Gas and Crescent Petroleum entered into agreement with the Kurdistan Regional Government (KRG) for certain exclusive rights to appraise, develop, produce, market, and sell petroleum from the Khor Mor and Chemchemal fields in the Kurdistan Region of Iraq (KRI). Production from the newly built plant in Khor Mor began just 15 months later, in October 2008. In 2009, Pearl Petroleum was formed as a consortium with Dana Gas and Crescent Petroleum as shareholders, and with OMV, MOL, and RWE joining the consortium subsequently with a 10% share each.
The $700 million expansion underway at the Khor Mor plant will include the addition of two new production trains at the Khor Mor plant, as well as drilling of new wells with plans to raise production from the current 400 MMscf/day to reach 650 MMscf/day by 2021 based on this latest GSA, and then to 900 MMscf/day beyond that by 2022. This follows the 30% production increase from debottlenecking throughput at the Khor Mor plant, which brought current total production to 106,000 barrels of oil equivalent per day (boepd), making it the largest regional private sector upstream gas operation in Iraq today.
Gas sales commenced late in 2018 under a gas sales agreement signed in January of that year, and all payments have been received in a timely manner in full, which gives confidence for the investment and expansion plans currently underway by the Consortium. The Kurdistan Gas Project, which recently commemorated 10 years of continuous production, supplies natural gas from the Khor Mor field by pipeline to power plants in Bazian, Chemchemal and Erbil, as well as LPG and condensate, which are sold in the local markets.
In August 2017, Pearl Petroleum reached a full and final settlement with the KRG of the arbitration between them, including settlement of past receivables and committing to expand their investment and operations in the region. These expansion plans include the multi-well drilling program currently underway in both the Khor Mor & Chemchemal fields, as well as installation of additional gas processing and liquids extraction facilities. The fields are operated jointly by Crescent Petroleum and Dana Gas on behalf of Pearl Petroleum.
Total investment in the Kurdistan Gas Project to date exceeds $1.6 billion, with total cumulative production of over 260 million barrels of oil equivalent (boe), delivering billions of dollars in fuel cost savings and wider economic benefits for the Kurdistan Region and Iraq as a whole. That impact will continue to grow as production capacity expands in the coming years.
Dr. Ashti Hawrami, Minister of Natural Resources of the Kurdistan Regional Government (KRG) said:
“This agreement is an important step for us as we deliver improved services to the people of the Kurdistan Region of Iraq through enhanced electricity generation from the increase in gas production by the Consortium. The Kurdistan Region holds significant reserves of gas and the KRG is committed to playing a positive role in the growing gas and electricity needs of Iraq and the region.”
Mr. Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, commented:
“This gas sales agreement opens a new chapter in the expansion of the Kurdistan Gas Project that will see a further investment of over $700 million in coming years to expand production up to 900 MMscf/day, further fueling the Region’s economic growth and development. We look forward to developing the significant resources from these important fields, for the benefit of the Kurdistan Region and all of Iraq.”
Dr. Patrick Allman-Ward, CEO of Dana Gas, added:
“Dana Gas and our partners in Pearl Petroleum are particularly proud to be investing further in the gas sector of the Kurdistan Region of Iraq, delivering a reliable source of cleaner energy, and supporting local economic development. The continuing receipt of payments in a timely manner gives confidence for our continued investment commitment as we enter our second decade of production.”
As part of its work in the KRI, Pearl has implemented a corporate social responsibility program to support local communities, including providing school supplies, drinking water treatment, generators and fuel enabling 24-hour electricity for local villages, mobile medical units, and youth sports facilities, as well as financial support for 1,000 orphans from the Chemchemal area in partnership with a local charity Foundation. These initiatives are assisting the local communities in improving their standard of living, health, well-being, security and stability and the development of human capital.
****
About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves of approximately one billion boe and average production of 63,050 boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen
Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
About Crescent Petroleum:
Crescent Petroleum is the first and largest private exploration and production company in the Middle East, with over 48 years of experience as an international operator in numerous countries including Egypt, Yemen, Canada, Tunisia, and Argentina, in addition to its continuing operations in the United Arab Emirates and Iraq.
Headquartered in Sharjah in the UAE, Crescent Petroleum has international offices in the UK and three locations across Iraq, as well as affiliated offices in Egypt 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.crescentpetroleum.com
Communication Contact
Hassan M. Fattah
communications@crescent.ae
Highlights
Sharjah, UAE; 14 February 2019
Dana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, today announced its Preliminary Unaudited Financial Results for the full year ended 31 December 2018.
Revenue was 4% higher at $470 million (AED1.7 bn) compared with last year’s $450 million (AED1.65 bn) due to higher realised prices and incremental production in the KRI in Q4 2018. Gross Profit increased 19% to $140 million (AED513 mm) compared with $118 million (AED432 mm) in 2017 reflecting the Company’s strong operational performance.
The Company’s 2018 Net Profit, before Impairments, was $64 million (AED235 mm) as compared on a like-for-like basis with $5 million (AED18 mm) in 2017. The Impairments follow the annual year end oil and gas reserves valuation of its Zora field in the UAE and its fields in Egypt, and which required the Company to take an exceptional one-off non-cash impairment of $187 million (AED685 mm) for Zora and $59 million (AED216 mm) in Egypt. Including the Impairments, the Net Loss for 2018 is $186 million (AED681 mm) as compared to a Net Profit of $83 million (AED304 mm) in 2017. Following these results, the Company’s book value per share stands at AED1.36 as of year end 2018.
Dr Patrick Allman-Ward, CEO of Dana Gas, commented:
“2018 was a year of strong operational performance for Dana Gas. We delivered, a 30% increase in gas production from the KRI debottlenecking project which will increase revenues by $50 million on an annualised basis, we made large saving from restructuring the Sukuk, we achieved higher collections and the Company paid its first dividend”.
Both our Revenue and Gross Profit were higher than last year and Net Profit also increased excluding a one off non cash impairment. With a robust cash balance and stronger balance sheet, we plan to pay an increased dividend of 5.5 fils in 2019.
We are proceeding with our exciting further expansion plans in the KRI and are looking to more than double our production and cash flows in the next three years. “
Sukuk, Liquidity and Collections
In 2018, the Company successfully concluded the Sukuk restructuring and a buyback program, which together has reduced the Sukuk from $700 million to $399 million. The Company will save $40 million in ongoing annual financing costs. Notwithstanding the Sukuk payments and a cash dividend of $95 million, the Company’s cash balance at year end was $407 million.
The Group’s total collection was $334 million with Egypt, KRI and UAE contributing $208 million, $114 million and $12 million respectively in FY 2018. In KRI, regular payments have been received and there are no outstanding receivables and in Egypt the outstanding receivables has been reduced by 39% in 2018 to $140 million at year end.
Production & Operations
Group production during 2018 averaged 63,050 boepd versus 67,600 boepd in 2017. In Egypt, production averaged 34,500 boepd versus 39,500 boepd in 2017, as a result of natural well declines however some of these declines were offset by the Balsam-8 well. In the KRI, average output increased slightly to 26,650 boepd from 25,750 boepd last year. Following completion of the debottlenecking project in the KRI, production increased by 30% and the aspirational target of 70,000 boepd was achieved in November. The Zora Field is being written-down following the year end reserve report and production is expected to cease during 2019.
The Company has an exciting line-up of projects. Key drivers of growth will be Egypt, where Block 6’s high-impact multi-Tcf Merak well is to be drilled in the second quarter 2019. In the KRI, Pearl Petroleum is also undertaking a multi-well drilling programme at the Khor Mor and Chemchemal Fields, with expansion plans to progress and grow production by a further 500 MMscf/d of gas and 20,000 bbl/d of condensate over the coming three years.
—Ends—
About Dana Gas
Dana Gas is the Middle East’s first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 63,050 boepd in 2018. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
Communication & Investor Relations Contact
Mohammed Mubaideen, Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com