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  • Revenue growth of 16% with 9M 2014 revenue of $541 million vis-à-vis $466 million in 9M 2013
  • Average production of 70,500 boepd (up 11%) vis-à-vis 9M 2013 average of 63,400 boepd
  • Significant progress on resolution of outstanding receivables in Egypt through Gas Production Enhancement Agreement with two new exploration blocks awarded
  • Kurdistan Joint Venture initiates local sales of liquid products and restarts income generation
  •  

    12 November 2014

    Sharjah

    Dana Gas, the Middle East’s leading regional private sector natural gas company is pleased to announce its consolidated financial results for the nine months and third quarter period ended 30 September 2014.

    In the nine month period ended 30 September 2014, Dana Gas reported a 16% increase in revenue to $541 million as compared to $466 million the previous year. Net profit in the nine month period of 2014 was also high at $129 million as compared to $121 million for 9M 2013. Profit from operations was higher by 57% to $129 million as compared to $ 82 million that was achieved in 9M 2013, if a one-off gain of $39 million following the partial sale of MOL shares in 1H 2013 is excluded. Production was up 11% at 70,500 barrels of oil equivalent per day (boepd) as compared to the average daily production of 63,400 boepd achieved in 9M 2013.

    The Company posted robust third quarter revenue of $174 million (3Q 2013 $170 million) and gross profits of $79 million (Q3 2013: $71 million). Net profits were up 36% to $38 million (3Q 2013: $28 million) underpinned by an increase in production and a strong focus on cost discipline. Production during the third quarter increased by 3% to reach 68,700 boepd compared to 66,850 boepd in Q3 2013.

    Operationally, the third quarter saw the Company sign two major agreements in Egypt and took a significant step forward in restarting income generation in the Kurdistan of Iraq (KRI) through local sales of liquid products.

    The Gas Production Enhancement Agreement was signed in September 2014 with the Egyptian Government. This agreement commits Dana Gas Egypt to a seven year work programme whereby the Company keeps the proceeds from incremental liquid sales which will be used to pay down receivables. Also in Egypt, two new blocks – Block 1 and 3 onshore Nile Delta – were awarded as part of an EGAS bid round conducted earlier in the year.

    Cash from operations and cash collections improved during 3Q 2014, as the Company received a total of $71 million during the quarter. The Company’s cash collection in Egypt was $53 million, out of which $36 million was in local Egyptian Pounds earmarked to settle overdue payables to service providers to its Egypt operations and $11 million is ring-fenced towards funding for the previously announced GPEA in Egypt, wherein it was agreed that the money received would be reinvested into this project in Egypt going forward.

    In relation to its Kurdistan operations, the Company received a cash advance amounting to $18 million as part of its 40% share in PPCL in the Kurdistan Region of Iraq.

    Dr Patrick Allman-Ward, CEO of Dana Gas, commented: “Our continuous focus on operational excellence and cost discipline is paying off resulting in significantly improved net profits for the quarter and year to date. We have made good progress in restarting cash flow in KRI through the initiation of local sales of liquid products. Our operations have continued uninterrupted despite the ongoing security situation in Iraq. We remain fully committed to Egypt and are very pleased to have found a win-win solution for all parties through the Gas Production Enhancement Agreement which commits the Company to making significant new investments which will result in higher production for the country and allows Dana Gas to recover outstanding receivables within a defined period of time.”

     

    EGYPT

    Operations

    Dana Gas signed the Gas Production Enhancement Agreement (GPEA) on 30 September 2014 with the Egyptian government, ensuring the Company long-term production growth and a significant reduction in receivables. The GPE has committed Dana Gas to a staged work programme over a seven year period with drilling expected to start in the first quarter of 2015. This will result in increased liquid volumes which will be monetised in accordance with the GPE agreement. As part of the work programme commitment, Dana Gas will drill over 20 new development wells and conduct a similar number of work-overs of existing wells. The estimated incremental production during the period will be approximately 270 billion cubic feet of natural gas, 8 to 9 million barrels of condensate and around 450,000 tons of LPG. Peak production is expected in 2017 with incremental daily production of approximately 160 mmscfd gas and 5,600 barrels of condensate. In return for the Company’s work programme commitment, financial proceeds from the direct sale of all of the incremental condensate in international markets at international prices will be retained by Dana Gas and will be used to reduce its outstanding receivables balance. Under the agreement it is envisaged that outstanding receivables from the government, will reduce to nominal levels by 2018. In addition, Dana Gas expects that it will receive payments from the Government as part of its ongoing strategy of paying down overdue receivables due to the oil and gas industry in the country.

    In late September, Dana Gas reinforced its presence in the Nile Delta by successfully bidding for onshore Blocks 1 and 3 as part of the 2014 EGAS bid round. Under the terms of the agreement, Dana Gas holds 100% of Block 1 and 50% working interest alongside BP in Block 3. The joint-venture partnership with BP on Block 3 affords Dana Gas a partner with a strong track record of exploration and production in Egypt. An additional positive commercial consideration is that the two blocks are located adjacent to Dana Gas’s existing development leases thus allowing for potential leveraging of the existing infrastructure in case of potential discoveries.

    Production

    In the third quarter, the Company produced an average 40,500 boepd, marginally higher than 39,350 boepd in 3Q 2013. Production is expected to stabilise over the remainder of the year. The GPEA work programme is expected to commence in early 2015, allowing the Company to resume its production growth up to 2017.

     

    KURDISTAN REGION OF IRAQ

    Operations

    Pearl Petroleum Company Limited (PPCL), the consortium company of which Dana Gas has a 40% share, commenced direct, local sale of condensate and LPG in September 2014. The Company received its share in the form of $18 million cash advance against future product deliveries. This represents a step forward in restoring income generation in KRI.

    Production

    Dana Gas’s share of gross production in the KRI for the third quarter was 27,700 boepd as compared to 27,100 boepd in Q3 2013.

     

    UAE

    Operations

    The Company recently announced that it has secured $100 million Term Facility for the Zora Field Development Project. The facility will contribute the debt component of the financing needed to complete the project and bring the Zora gas field on-stream in 1H 2015. The field is expected to provide a production of 40 mmscfd (6,650 barrels of oil equivalent per day). The gas will be transported via a subsea pipeline to an onshore gas processing facility located in Hamriyah Freezone in Sharjah.

    LIQUIDITY AND FINANCIAL RESOURCES

    On a year to date basis, the Company has collected a total of $ 99million in cash. The Company’s receivables, however, were positively impacted by $46 million which was set off against the North Al Arish Offshore Block 6 signature bonus and liabilities due to other Government owned contractors in Egypt.

    As part of its liquidity management, Dana Gas also completed a sale of 350,000 shares i.e. around 25% of sell-down of its equity holding in MOL and realised gross proceeds of $18 million in October 2014.

    The Company’s outstanding receivables, as of 30 September 2014, are $276 million in Egypt and $712 million in the KRI.

    During the period from 1 January 2014 to 30 September 2014, the Company received voluntary early conversion notices for the convertible sukuk amounting to USD 72,926,080. These conversions will result in sukuk profit saving of approximately $ 3 million in 2014

1Dana Gas Posts 36% Increase in Q3 Net Profits Due to Higher Revenues, Improved Production and Cost Discipline 

THIS DISCLOSURE IS MADE PURSUANT TO ARTICLE 33 OF THE REGULATIONS OF THE ABU DHABI STOCK EXCHANGE AS TO DISCLOSURE AND TRANSPARENCY

23 October 2014

Sharjah, UAE

Dana Gas PJSC has received a total of US$ 83 million (AED 307 million) in collections in the last few weeks. The Company received US$ 47 million (AED 174 million) against its receivables in Egypt, US$36 million of which is in local Egyptian Pounds earmarked to settle overdue payables to service providers to its Egyptian operations. The balance of US$11 million is ring-fenced towards funding for the previously announced Gas Production Enhancement Agreement in Egypt wherein it was agreed that the money received would be reinvested into this project in Egypt going forward.

In relation to its Kurdistan operations, Dana Gas has received a cash advance amounting to US$ 18 million (AED 66.6 million) as part of its 40% share in the Pearl Petroleum Joint Venture (PPCL) in the Kurdistan Region of Iraq. This is the result of the commencement of direct, domestic sales of condensate and LPG by PPCL and represents a cash advance guarantee against future product deliveries.

As part of its liquidity management, Dana Gas also completed a 25% sell-down of its remaining equity holding in MOL and realised gross proceeds of US$18 million (AED 66.6 million).

3Disclosure on Collections from Egypt and Kurdistan Region of Iraq 

- Dana Gas awarded Blocks 1 and 3 in the onshore Nile Delta area

- Block 1 represents an extension of Dana Gas' existing successful conventional gas business

- BP will operate Block 3 as 50/50 partner


 

2nd October 2014

Sharjah,

Dana Gas, the Middle East’s leading regional private sector natural gas company, is pleased to announce that its wholly owned subsidiary, Dana Gas Egypt, has been awarded the North El Salhiya (Block 1) and El Matariya (Block 3) onshore Concessions in the Nile Delta as part of the 2014 EGAS bidding round held recently in Egypt. The awards are subject to the execution of Concession Agreements, which is expected to take place in the coming weeks.

The Company will operate the Block 1 Concession Area on a 100% basis. It is expected that exploration success and future production from conventional gas reservoirs in the Block, utilizing Dana Gas Egypt's existing infrastructure, has the potential to extend the Company's highly successful gas production business onshore the Nile Delta.

Dana Gas Egypt will participate in the Block 3 Concession Area on a 50% basis with BP as partner and operator. BP and Dana Gas are in discussion on the terms for funding an exploration well and for possible joint participation in some of Dana Gas’s adjacent Development Leases.

Dr. Patrick Allman-Ward, CEO, Dana Gas, said: “We are extremely pleased to have been awarded these two new blocks. The area is particularly well known to Dana Gas, given its long-term commitment to the Nile Delta. We believe there is significant upside potential from continued exploration and development in these concessions. We are delighted to be partnering with BP, a leader in deep well drilling in the Nile Delta. This will allow us to carry out a challenging work program with a proven partner and reaffirms our confidence in the potential of our assets.”

The two blocks are located adjacent to the Company’s existing Development Leases. Together with BP, Dana Gas will look to explore the multi-TCF Hydro Carbone potential of the Oligocene reservoirs that have proven successful to date in offshore Egypt blocks. The two blocks have a 6-year exploration period, comprised of two phases of 3 years each. A 20-year development lease period will be granted to each block, based on approved commercial discovery. The two concessions, which cover 1,527 km² and 960 km² respectively, were awarded as part of the EGAS international bid round held in August 2014. Ratification of the two new concessions is expected to take place following the completion of the necessary approvals.

 

About Dana Gas, Egypt

Dana Gas Egypt is currently the sixth largest gas producer in Egypt and has over 900 Egyptian staff. The Company owns a 100% interest in thirteen Development Leases onshore the Nile Delta which it operates through the El Wastani Petroleum Company (Wasco), Dana Gas’ joint-venture company with EGAS and EGPC. Over the last seven years, the Company has invested in excess of $1.8 billion in exploration, development and production in Egypt. To date, Dana Gas Egypt has made 25 discoveries, and has produced over 100 million BOE accumulatively.

4Dana Gas Successfully Bids for 2 New Nile Delta Concessions

- Company collects $130 million in Egypt in 2013
- Egyptian Government commits to paying receivables balance


 

24 December 2013

Sharjah

Dana Gas, the Middle East's leading regional private sector natural gas Company, announced today that it has received from the Egyptian Government authorities the payment of AED 194 million (US$ 53 million) from the current total outstanding receivables of AED 1,210 million (US$ 330 million). Payment of $ 42 million has been received in US dollars and the balance in equivalent Egyptian pounds. Including this tranche, during 2013, Dana Gas has received a total of AED 476 million (US$ 130 million) from the Egyptian Government authorities. The Egyptian Government has committed to work with the Company on a plan to repay the remainder of the outstanding receivables over an agreed time frame.

Whilst Dana Gas has had on-going discussions with the Egyptian authorities to resolve the issue of outstanding payments, it has also been able to increase production for the benefit of the Egyptian economy and its people. Dana Gas Egypt’s gas, LPG, condensate and crude oil production averaged 39,350 boepd in Q3 2013, a significant increase of 29% over the Q3 2012 average production. During Q3 2013, the Company also announced that it reached a record production level of 41,500 barrels of oil equivalent per day “boepd” (including over 8,000 barrels per day of associated liquids).

Dana Gas sponsored and participated in the "GCC-Egyptian Investment Forum" held in Cairo on 4-5th December 2013, co-hosted by the Egyptian Ministry of Investment and the UAE Government. Following this occasion, Dana Gas was honoured to receive a certificate of appreciation from the UAE Ministry of Foreign Affairs.

Patrick Allman-Ward, Chief Executive Officer of Dana Gas, said: “We would like to thank the Egyptian Government for making this payment. We are working closely with the authorities to find creative solutions to fast track the repayment of the remaining outstanding receivables and ongoing payments schedule going forward. An early resolution in this regard will encourage new investments in the Oil & Gas sector in Egypt leading to higher domestic production”.

Dana Gas is among the most active oil and gas companies and is the 6th largest gas producer in Egypt. The Company has invested around US$ 2 billion in Egypt, making it the GCC’s largest investor in the oil & gas sector in the country. The Company has a successful track record of gas discoveries in Egypt over the last six year and in June 2013, announced its 25th discovery in the Nile Delta. Around 1000 staff and associates are actively engaged in ensuring safe and stable operations in Egypt, both at the Dana Gas operations and in WASCO, its joint venture operating company with the Egyptian General Petroleum Corporation (EGPC).

The Company is expecting to bring online production from Salma rich gas wells shortly. Starting 2007, the cumulative gross production of Dana Gas in Egypt to date is around 90 million barrels of oil equivalent and this has generated direct incremental value of US$ 4 billion for the Egyptian economy. The Company is committed towards investing in Egypt, and grow with the context of the promising oil & gas opportunities in Egypt, which has over 70 TCF proven gas reserves and a large domestic market.

5Dana Gas Receives US$ 53 million from Egypt 

​Sharjah
Dec 15 2013

Click Here for the intervew video

6Interview with Dr. Patrick Allman-ward, CEO Dana Gas: 2013 Oil Council World Assembly, London November 2013

  • Adyard awarded contract for offshore platform components
  • Delivery of gas expected to commence in 2015
  • Expected production capacity of 40 mmscfd
  •  

    17 November 2013,

    Sharjah

    Dana Gas, the Middle East’s leading regional private sector natural gas company, announced today that Adyard Abu Dhabi, a subsidiary of Interserve plc, has been awarded a $17 million contract for the fabrication of an offshore platform for the Zora Field Development Project which spans the territorial waters of Sharjah and Ajman, UAE. The platform is an important element in the overall scope of the Zora project, the aim of which is to extract the reserves from the Zora field through an offshore facility and to transport the reserves via a 35km subsea pipeline to an onshore gas processing facility. The facility will be located in Sharjah onshore area.

    Fabrication of the platform will be carried out by Adyard and will include the manufacture and erection of the structure and the different deck levels. Adyard will also prepare the finished platform for safe and secure loading onto a transportation vessel. The platform will eventually be installed in a water depth of 24 meters, along with associated facilities.

    The contract with Adyard was signed at the Sharjah Petroleum Council. In the presence of Sheikh Mohamed Bin Ahmed Al Qasimi, Director General Chairman’s Office of Sharjah Petroleum Council, Waleed Deemas, Secretary General of the Sharjah Petroleum Council, Marwan Al Ali, Representative of Ajman Government and Rashid AlJarwan, Executive Director of Dana Gas and other Government representatives and company seniors from both Dana Gas and Adyard.

    Dr. Patrick Allman-Ward, Chief Executive Officer of Dana Gas said: “This contract is the first strategically significant development towards bringing the Zora gas field on-stream. The capital investment of $160 million in the project during the project execution phase will contribute to the local and regional economy. During the operational phase, we will utilize locally sourced gas to contribute in adding value and development to the economy of the UAE, by supplying Zora Field gas that will generate a significant portion of the domestic fuel supply. The appointment of Adyard Abu Dhabi marks the start of a commitment programme with awards for contracts for other aspects of the work to follow in due course. The company expects to start delivering 40 million cubic feet per day of gas in the first half of 2015.”

    On this occasion Dana Gas Executive Director Rashid Al Jarwan said: “Dana Gas is proud to play its positive role in developing the Zora gas field, marking the first exploration and production project for the company in the UAE and GCC region. The produced gas will be used mainly as a fuel source that will make significant savings in fuel cost. We look forward to a long and fruitful partnership with the Governments of Sharjah and Ajman.”

    In November 2012, Dana Gas signed a set of agreements with the Sharjah and Ajman Governments to jointly develop the shared field, located around 40 kilometers off the coasts of the two emirates. The deal – of which Dana Gas is 100% operator – included a unitization agreement for management of the shared field, gas sales and purchase agreements, and the joint operating agreement.

    Dana Gas already operates gas and other hydrocarbon facilities in Egypt and the Kurdistan region of Iraq, and has an onshore gas processing plant in Sajaa, Sharjah. The Zora facility will be the Company’s first operation located in Sharjah, where Dana Gas is headquartered.

     

     

7Dana Gas Awards Contract for Zora Offshore Field
  • Net profit of AED 102 million ($28 million)
  • 17% increase in production, including around 30% increase
    in production in Egypt
  • Average quarterly production at 66,850 boepd
  •  

    4 November 2013

    Sharjah,


     

    Dana Gas, the Middle East’s largest regional private sector natural gas company, announces its financial results for the third quarter and nine month ended 30 September 2013 with a net profit of AED 102 million (US$28m) and AED 443 million (US$121m) respectively.

    Gross revenue for the third quarter was significantly higher at AED 623 million (US$170m), an increase of 21% on Q3 2012. Earnings before interest, tax, depreciation, amortisation and exploration (EBITDAX) was AED 340 million (US$93 million) which was considerably higher by AED 23 million (US$6m) than in Q3 2012. Net profit remained flat year-on-year due to higher royalty and higher depreciation in line with higher production in Egypt. Accordingly, the Group posting a net profit of AED 102 million (US$28m) in Q3 2013 compared to AED 104 million (US$29m) in Q3 2012.

    For the nine months ended September 2013 also, the Company posted gross revenues and net profit of AED 1.708 billion (US$466m) and AED 443 million (US$121m) respectively. In comparison, the Company recorded figures of AED 1.766 billion (US$482m) and AED 491 million (US$134m) respectively in 9 months 2012. This reduction in nine-months profit was due to lower realised hydrocarbon prices, suspension of LPG production since mid-2012 and a one-off higher cost of sales in 2Q 2013 in the Kurdistan Region of Iraq. Consequently, the nine months 2013 EBITDAX was AED 956 million (US$261m), down from AED 1.139 billion (US$311m) in the nine months ended September 2012.

    The Company’s average production volumes were substantially higher in the third quarter at 66,850 barrels of oil equivalent per day (boepd), an increase of 17% on Q3 2012
    (57,000 boepd) and 8% increase on Q2 2013 (61,700 boepd). This significant increase in production was driven by Egypt, which saw a sharp increase in quarterly production of around 30% to 39,350 boepd from 30,400. Dana Gas’s share of production in Kurdistan Region of Iraq (‘KRI’) for Q3 2013 remained stable at 27,100 boepd, up 2% quarter-on-quarter and similar to the Q2 2013 output of 27,000 boepd.

    In October 2013, Dana Gas Sukuk was awarded the International Finance Law Review Award for the Middle East Restructuring Deal of the Year for its Sukuk restructuring. In May 2013, Dana Gas PJSC completed the refinancing of its US$1 billion Trust Certificates (Sukuk-al-Mudarabah) issued by Dana Gas Sukuk Limited.

    Commenting on the results, Dr. Patrick Allman-Ward, Chief Executive Officer of Dana Gas, said: “Our third quarter results reflected yet another strong operational performance, particularly in Egypt. Our overall average production numbers are ahead by 17% to 66,850 boepd on a quarter-on-quarter basis. This demonstrates the inherit quality of our assets and the ability of Dana Gas employees to deliver value from these resources. We have been given strong indications by the Egypt government regarding planned payments in the next few months” added Dr. Patrick. “We welcome this positive step as it will allow our capital and exploration expenditure to remain in-line with anticipated spending plans, allowing us to pursue our strategy of maximizing our production from these resources.”

     

    Production and Development

    Dana Gas Egypt’s gas, LPG, condensate and crude oil output averaged 39,350 boepd in Q3 2013, a massive increase of around 30% over Q3 2012 average production. During the period, the Company had also announced that it reached record gas production levels equivalent to 41,500 boepd (including over 8,000 barrels per day of associated liquids), the highest level in two years and representing a growth of around 30% over the 2012 average production.

    In the Kurdistan Region of Iraq, the Company’s share of production in the Khor Mor Field for the third quarter averaged 27,100 boepd (Q3 2012: 26,600 boepd). The reconstruction and upgrading of the LPG loading facilities at the Khor Mor processing facility is complete and the plant has the capacity to produce up to 900 tonnes per day of LPG, the equivalent of 10,000 boepd.

    Together, the Group’s net production averaged 66,850 boepd, a significant increase of 17%, from its interests in Egypt and the KRI during the third quarter ended 30 September 2013.

     

    Liquidity and Financial Resources

    Cash balance, as of 30 September 2013, stood at AED 674 million (US$184m) (30 June 2013: AED 792 million (US$216m)). This, in addition to the Company’s other liquid investments allows the company to follow a prudent cash utilisation policy in terms of fulfilling its business-critical capital expenditures and operating expenses and meeting its financial obligations.

    Overall trade receivables, as of 30 September 2013, stood at AED 2,775 million (US$757m).

    In Egypt, Dana Gas collected AED 30 million (US$8m) in Q3 2013 against its receivables (Q3 2012: AED 117 million (US$ 32m)) and, as of 30 September 2013, the trade receivable amount was AED 1,093 million (US$298m) (30 June 2013: AED 960 million (US$262m)).

    In the Kurdistan Region of Iraq, Dana Gas collected AED27 million (US$ 7m) in Q3 2013 against its share of receivables in Kurdistan (Q3 2012: AED 73 million (US$ 20 million)) and, as of 30 September 2013, the balance was at AED 1,646m (US$450m) (30 June 2013: AED 1,473 million (US$402m)).

    Dana Gas is actively engaged in ongoing dialogue with relevant government authorities in Egypt and the Kurdistan Region of Iraq regarding receivables and its future capital expenditure plans. In the interim, the company continues to follow a prudent cash utilization policy and a calibrated capital expenditure programme.

     

    Zora (UAE) Project Update

    The Zora Project agreements between Sharjah and Ajman Governments of the UAE were signed jointly to develop the shared field located around 40 kilometres off the two coasts. These included a unitization agreement for management of the shared field, gas sales and purchase agreements, and the joint operating agreement.

    Discussions on the project are close to completion in order to award the contract for fabrication and installation of the offshore unmanned platform. As the project enters a new phase (fabrication and construction), a dedicated team, formed by Dana Gas, is driving the project to completion.

     

    Exploration & Appraisal

    During the period, Dana Gas Egypt was successful in bringing online production from the
    tie-in of South Abu El Naga wet gas well and Allium in the West El Manzala concession; West Sama in West El Qantara concession and West El Baraka in Komombo concession.

     

    Arbitration

    On 21 October 2013, Dana Gas, along with Crescent Petroleum and Pearl Petroleum has commenced arbitration proceedings at the London Court of International Arbitration (LCIA), in order to confirm certain contractual rights under their Agreement with the Kurdistan Regional Government of Iraq (KRG), which was signed in April 2007 and is governed by English Law.

8Dana Gas Revenues Grow 21% to AED 623 Million 

Sharjah
Dec 30 2012

  • Two onshore discovery wells located in the Nile Delta Basin
  • Both discoveries are close to Dana Gas's existing production facilities
  • Initial estimates indicate the two discoveries could increase Dana Gas' commercial reserves by up to 55%
  • Dana Gas has now made four discoveries in Egypt in 2012

Dana Gas PJSC, the Middle East's first and largest regional private sector natural gas company, has announced that it has made two new onshore gas discoveries in the Nile Delta Basin of Egypt. Initial estimates indicate that together the two discoveries, known as Alyam-1 and Balsam-1, should increase the company's commercial reserves by between 17 (proved) and 95 (proved & probable) million barrels of oil equivalent (MMBOE).

Mr. Rashid Al Jarwan, Executive Director and Acting CEO of Dana Gas said "Our latest two discoveries confirm the Nile Delta as a prolific hydrocarbon-bearing basin. Dana Gas remains fully-committed to the long term development of Egypt's gas industry and its essential role in fuelling the nation's economic growth."

The Balsam-1 well encountered 51 meters of net pay in a good-quality sandstone reservoir of the Qawasim formation at high pressure, indicating high deliverability from the field. Production testing yielded 10 million standard cubic feet per day of gas on a 20/64-inch choke and more than 1,000 barrels per day of liquid condensate. The two new fields have the highest liquid yield of any gas field discovered in the area so far.

The Balsam-1 and Alyam-1 discoveries in West El Manzala are adjacent to the El Basant Field and its associated pipeline network, operated by Dana Gas. They follow two other discoveries in 2012 by Dana Gas:

In October 2012 The Company announced the commencement of Dana Gas’ joint-venture, the Egyptian Bahrain Gas Derivatives Company (EBGDCo) NGL extraction plant at Ras Shukheir in Egypt. EBGDCo’s average gas intake rate has reached 75 MMscfd and four cargo shipments of propane have been exported. When fully operational, the plant will extract 120,000 tonnes per annum of propane & butane from a gas stream of 150 MMscfd.

Notes to Editors:

9Dana Gas Makes Significant New Gas Discoveries in Egypt 

Sharjah
Dec 10 2012

Q1 What has actually been agreed so far?

The Company and the Ad Hoc Committee of Sukukholders have reached an agreement on the key commercial terms of a refinancing of the Existing Sukuk and the process by which the transaction will be implemented.

 

Furthermore, the Ad Hoc Committee, representing the majority of the principal amount of Existing Sukuk, has signed a Lock up and Standstill Agreement to, subject to the terms of the Agreement, support and vote in favour of the deal.

 

Q2 Why haven’t shareholders been consulted or involved in the process so far?

In reaching a deal, the Company and its Board of Directors have taken into account the interests of all stakeholders, including first and foremost its shareholders. It should be noted that discussions between the Company and the Ad Hoc Committee involved material non-public information that could not be released prior to this time. This material has now been made available on the company website.

 

The consultation process with the regulators has now commenced and shareholders will also be provided with adequate disclosure and will have the right to vote to approve the transaction in an Extraordinary General Meeting (EGM), expected to be held in Q1 2013, once the lengthy legal documentation process has been completed, which is normal in such transactions.

 

Q3 Does this Transaction give more benefits to sukukholders or shareholders?

The Company believes the agreed terms achieve a balanced solution to the benefit of all stakeholders and are in the long term interests of the Company.

 

Shareholders will continue to own 100% of the equity upon closing and will not be required to make any additional equity contribution as part of the Transaction. Shareholders also benefit from the 5-year tenor on the New Sukuks, with a reduced debt service burden, no material change in potential dilution (assuming conversion of the Convertible Sukuk), and a stable, long-term capital structure that will allow the Company to take full advantage of strong long-term business fundamentals.

 

Sukukholders benefit from two separate instruments thereby allowing both credit and equity upside participation (thereby providing proportional participation in any future value creation, alongside shareholders, through the new Convertible Sukuk), an enhanced security package and a blended profit rate increase of 0.5%.

 

Q4 How will the Transaction impact shareholders in terms of the value of their equity holdings?

Post Transaction, shareholders continue to own 100% of the Company’s equity upon closing – there is no debt to equity swap.

 

The terms of the Transaction are specifically designed to create a long-term, stable capital structure.

 

Q5 If Convertible Sukuk holders convert their holdings into shares, will shareholders be diluted?

Assuming conversion of the new Convertible Sukuk at a future point in time, the relative ownership of existing shareholders and the new Convertible Sukuk holders would be substantially similar to that in the Existing Sukuk.

 

The conversion price in respect of the US$425 million Convertible Sukuk is set at a 50% premium to the 75 calendar day volume-weighted average price, measured over a period commencing on 1 December 2012, with a floor of AED 0.75 and cap of AED 1.00. This is to ensure that potential dilution remains substantially similar to that under the Existing Sukuk.

The potential dilution under the terms of the Existing Sukuk (assuming full conversion) is approx. 21%, and potential dilution under the Convertible Sukuk (again, assuming full conversion) would range between 19% and 24%, depending on where the future conversion price is finally set.

 

Q6 Under the new documentation, what is the additional security of US$300 million made up of?

The security package is restricted to Egypt and certain UAE assets. The additional security of approximately US$300 million in value includes security over receivables of the Egyptian assets of approximately US$200 million and certain other assets in the UAE.

 

Q7 By how much will the Company’s debt obligations increase or decrease as a result of this Transaction?

There will be immediate decrease of US$150 million via (i) US$70 million cash pay-down of the Existing Sukuk at closing, and (ii) US$80 million principal amount of the Existing Sukuk already owned by the Company will be cancelled. The Company has the option to increase the cash pay-down element any time prior to five days before the expiration of the consent solicitation period.

 

Q8 Can the Company comfortably afford to fund ongoing operations and pursue growth opportunities as well as service its debt obligations?

The Transaction has been structured with the objective of enabling the Company to maintain sufficient liquidity and continue executing on its business plan without disruption. Due to the only slightly higher average coupon rate (8% vs. 7.5% previously) and the reduced debt amount, the debt servicing requirement on the Company will actually be lower. In addition, Dana Gas will have the ability to pay down the New Sukuks (subject to the applicable call premia on the Ordinary Sukuk and the soft call provisions on the Convertible Sukuk), or make purchases in the market.

 

Q9 What levels of acceptance are needed from sukukholders and shareholders?

The Transaction is currently intended to be implemented by way of amendment to the Existing Sukuk documentation. Such an amendment requires a quorum to conduct the sukukholder meeting with representation from more than half of the outstanding principal amount of the Existing Sukuk and of those present at least 75% voting in favour to pass the Extraordinary Resolution. A subsequent meeting would be required if sufficient sukukholders are not present at the first meeting. Any amendments duly approved will be binding on all sukukholders, whether present at the meeting or not. The Lock-up and Standstill Agreement signed by the Ad-Hoc Committee obliges them, subject to the terms of such an agreement, to vote in favour of the Transaction, meaning a majority of the holders of the Existing Sukuk already support the Transaction.

 

Implementation of the Transaction also requires shareholder approval, based on a simple majority vote at an extraordinary general meeting (“EGM”), expected to be held in Q1 2013. The initial meeting requires shareholders holding 75% of the shares to be present. Subsequent meetings would be required if sufficient shareholders are not present at the first, and such later meetings will have lower quorum requirements as per the Company’s Articles of Association.

 

Q10 Do you need additional support from Sukukholders outside the Ad Hoc Committee to complete this Transaction?

The Ad Hoc Committee represents more than 50% of the principal amount outstanding of the Existing Sukuk, which is sufficient for a quorum to conduct a sukukholder meeting. The Company remains committed to obtaining the support of all stakeholders, including additional sukukholders.

 

 

Q11 What do shareholders have to do next?

The Company intends to schedule an EGM in the first quarter of 2013, after completing the lengthy legal documentation process as is normal in such transactions, to request shareholder approval of the terms of the Transaction that require such approval post securing approval of the concerned regulatory authorities. The request to the shareholders for an EGM will be accompanied by detailed information on the Transaction to enable shareholders to make an informed decision.

 

Q12 Why should shareholders vote in favour of the Transaction?

The Transaction is specifically designed to create a long-term, stable capital structure that would allow the Company to create value to all stakeholders, including shareholders, from strong long-term business fundamentals, and its valuable assets.

 

The Transaction is also designed to enable time for normalisation of economic and political realities and consequent challenges that the Company has been facing in Egypt and Kurdistan, namely the delays in payment of receivables.

 

Key benefits of the transaction to shareholders are:

100% ownership upon closing and no requirement for shareholder cash support or debt to equity swap.

 

If conversion of the Convertible Sukuk takes place, the relative ownership would be substantially similar to that in the Existing Sukuk.

 

A long term 5-year transaction, which will allow the Company to create value for shareholders.

 

A reduced debt service burden on the Company, with the ability to further reduce debt as the liquidity position improves.

 

Q13 Do Sukukholders have a say in the appointment of new management in the Company?

The new management will still only be approved by, and remain under the direction of, the Company’s Board of Directors.

 

Q14 Is the Company permitted to pay the New Sukuks off early if the liquidity situation improves, or will it face penalties for doing so?

Under the agreed terms, there is no restriction on repaying the New Sukuks: The Ordinary Sukuk could be redeemed prior to maturity in each of the five years of its term at premium to par, as is normal in such transactions, that ranges from 9% to 0%. The Convertible Sukuk could also be redeemed prior to maturity on substantially similar terms to those in the Existing Sukuk documentation.

 

The Company is also allowed to make unrestricted open-market purchases, at any point of time, of both the Ordinary Sukuk and the Convertible Sukuk.

 

Cautionary Note Regarding Forward-Looking Statements and Other Disclaimers

 

This press release contains forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “intends,” “may,” “will” or “should” or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this press release and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, our financial condition and liquidity, and the development of the industry in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if our results of operations, our financial condition and liquidity, and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this press release those results or developments may not be indicative of results, conditions or developments in subsequent periods.

All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or publicly revise any forward-looking statements, whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this press release.

Under no circumstances shall this announcement constitute an offer to sell, or the solicitation of an offer to buy, any securities nor shall there be any sale of the securities mentioned in this press release in any jurisdiction in which such offer, solicitation or sale would be unlawful. The potential transaction described in this announcement and the distribution of this announcement and other information in connection with the potential transaction in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Information regarding the potential transaction and the securities shall be contained in an offering document, if any, that may be produced by the issuer of the securities and potential investors should refer to such offering document when, and if, it becomes available. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This communication is not, and may not be used in connection with, an offer of securities for sale or the solicitation of an offer to buy securities in the United States, Australia, Canada, Japan, Bahrain or Qatar or any other jurisdiction where such offers or solicitations are not permitted by law. The Issuer has not registered, and does not intend to register, such securities in any of these jurisdictions and does not intend to conduct a public offering of such securities in any of these jurisdictions. In particular, no such securities of the Issuer have been nor will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and such securities may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. This information is not to be shown or given to any person other than the recipient, and is not to be forwarded to any other person, copied or otherwise reproduced or distributed to any other person in any manner whatsoever. Failure to comply with this directive can result in a violation of the Securities Act.

10Q and A Related to Sukuk

  • Significant reduction of outstanding debt to US$850 million with overall lower debt servicing requirements
  • Deal structured to ensure that potential dilution of shareholders remains substantially similar to current levels
  • Refinancing will place Dana Gas on a stronger financial footing in the interests of all stakeholders

Dana Gas PJSC, (‘Dana Gas’ or ‘the Company’), the Middle East’s first and largest private sector natural gas company, is pleased to announce the detailed terms, conditions and implementation information for the refinancing transaction (the “Transaction”) in relation to its US$1 billion 7.5% Sukuk-al-Mudarabah due 31 October 2012 (the “Existing Sukuk”).

Key Transaction Highlights:

  • Lock-up and Standstill Agreement signed by the Ad Hoc Committee of Sukukholders (‘The Ad Hoc Committee’), which represents the majority of the outstanding principal amount of the Existing Sukuk. Subject to the terms of the Agreement, the members of the Ad Hoc Committee have undertaken to vote in favour of the Transaction
  • Reduction in the Company’s outstanding debt from US$1 billion to US$850 million via US$70m cash pay-down and cancellation of another US$80 million of the Existing Sukuk already owned by the Company
  • Remaining US$850 million split into two tranches to ensure potential dilution for shareholders remains substantially similar to current levels: a US$425 million Ordinary Sukuk and US$425 million Convertible Sukuk (together the “New Sukuks”), each with 5-year maturity to ensure long-term financing
  • The average combined profit rate on the two New Sukuks is 8%, representing a slight increase over the Existing Sukuk profit rate of 7.5%
  • This average profit rate of 8%, together with the lower debt amount of US$850 million, constitutes a lower debt servicing obligation on the Company as compared to the debt servicing obligations under the Existing Sukuk
  • The security package available to holders of the New Sukuks will be enhanced by US$300 million of value (inclusive of security over receivables of the Company’s Egyptian assets), but is restricted to the Company’s Egyptian assets and certain UAE assets
  • The Conversion price of the Convertible Sukuk has been set at a 50% premium to the 75 calendar day volume-weighted average price, measured over a period commencing on 1 December 2012 (with a floor of AED 0.75 and cap of AED 1.00)
  • Dana Gas has the option to pay down the outstanding principal amount of the New Sukuks prior to the new maturity date of 31 October 2017, subject to the applicable call premia on the Ordinary Sukuk and the soft call provisions on the Convertible Sukuk.

Dr. Adel Khalid Al-Sabeeh, Chairman of the Board of Dana Gas said,

“We believe that the terms being announced today represent a comprehensive, long-term solution which balances the interests of all stakeholders. The Board plans to secure necessary stakeholder consents for implementation of the Transaction, while the Company continues to focus on achieving its growth potential over the coming years and continue to realise value.”

 

Rashid Al-Jarwan, Executive Director and Acting Chief Executive Officer of Dana Gas said:

“Dana Gas has a robust asset base and has successfully grown revenues, production, reserves and asset values consistently over the last 5 years, in line with our strategy. The Company's liquidity constraints were caused by well-known external factors, and we believe that these revised terms of the New Sukuks place Dana Gas on a firm foundation for further growth and progress.”

 

Transaction details:

Subject to approval by sukukholders and shareholders, the Transaction will include:

Reduction in Company’s outstanding debt from US$1 billion to US$850 million:

The Company’s debt burden will immediately be reduced by US$150 million via (i) US$70 million cash pay-down of the Existing Sukuk at closing (which may, for a period prior to closing of the Transaction, be increased at the option of the Company), and (ii) the cancellation of US$80 million principal amount of the Existing Sukuk already owned by the Company.

The remaining principal amount of the Existing Sukuk of US$850 million will be split into two new sukuk instruments with a five year maturity consisting of an Ordinary Sukuk and a Convertible Sukuk of equal principal amounts of US$425 million each (reduced pro-rata if cash pay-down at closing is greater than US$70 million).

Each existing sukukholder will be allocated an equal amount of the two New Sukuks, pro rata to the aggregate principal amount of the Existing Sukuk held by each holder immediately before the closing of the Transaction.

 

Lower debt servicing obligations for Company with average profit rate of 8% on lower debt amount of US$850 million:

Existing Sukuk holders will receive an average profit payment of 8% combined across the New Sukuks.

The Ordinary Sukuk will have a 9% fixed profit rate (payable quarterly in cash) and will mature on 31 October 2017. The Convertible Sukuk will have a 7% fixed profit rate (payable quarterly in cash) and will mature on 31 October 2017.

 

Security package has been enhanced by US$300 million of value (inclusive of security over receivables of the Company’s Egyptian assets) but is restricted to Egypt and certain UAE assets:

Both instruments will rank pari passu with each other and will be secured on an equal and ratable basis and will benefit from an enhanced security package of approximately US$300 million of value in addition to the existing security on the Existing Sukuk. The security package is restricted to Egypt and certain UAE assets.

The covenant package for the New Sukuks will be substantially similar to that in the Existing Sukuk.

 

The Conversion price has been set to recognise long term support of shareholders and to ensure that potential dilution remains substantially similar to current levels

At closing of the Transaction, existing shareholders will continue to own 100% of the Company’s equity. Assuming later conversion of the new Convertible Sukuk, the relative ownership of existing shareholders and the holders of the new Convertible Sukuk would be in a range similar to that in the Existing Sukuk to ensure that potential dilution remains substantially similar to current levels. The potential dilution under the terms of the Existing Sukuk is circa 21%, and potential dilution under the new Convertible Sukuk would range between 19% and 24%, depending on where the conversion price is eventually set.

The Conversion Price for the new Convertible Sukuk will be set at a 50% premium to the 75 calendar day volume-weighted average price, measured over a period commencing on 1 December, 2012, with a floor of AED 0.75 and cap of AED 1.00.

In the event that the effective Conversion Price is less than AED1.00, the economic value difference between the effective conversion price and AED1.00 shall be paid in cash at conversion, or at the Company’s option, in additional shares of the Company.

Customary adjustments of a similar nature to the terms of the Existing Sukuk would be applicable to the conversion price to reflect any applicable corporate events in the future such as new share issues, dividend payments, etc.

Conversion rights may be exercised by the new Convertible Sukuk holders at any time after 31 October 2013.

 

Dana Gas has the option to pay down both New Sukuks before maturity:

Under the agreed terms, there is no prohibition on repaying the New Sukuks early. The Ordinary Sukuk could be redeemed prior to maturity in each of the five years of its term at premium to par that ranges from 9% to 0%. The Convertible Sukuk could also be redeemed prior to maturity at substantially similar terms to those in the Existing Sukuk documentation. The Company is also allowed to make unrestricted open-market purchases, at any point of time, of either or both the Ordinary Sukuk and the Convertible Sukuk.

 

Management appointments and investor relations:

There is no change in the Company’s Board of Directors. The Company will exert its best efforts to recruit the new CEO by end of the first quarter 2013, and the CFO and Investor Relations Director by the end of the second quarter 2013.

 

International Listing:

The Company will assess the possibility of an international listing of its upstream assets in due course. If it deems that this will enhance value for both shareholders and sukukholders, the Company will seek the necessary consents as part of the consent solicitation process and pursue this course of action.

 

Other key terms of the New Sukuks

Documentation of the New Sukuks shall be governed by English law, certain Shariah documents by UAE law, and the security documents by applicable local law, as with the Existing Sukuk.

The New Sukuks shall be listed on the London Stock Exchange or another international stock exchange, as with the Existing Sukuk.

 

Next Steps

  • In order to successfully complete the Transaction, the Company will seek the consent of the shareholders, existing sukukholders, and the relevant regulatory authorities. It is currently expected that the Transaction will be completed early in the second quarter of 2013.
  • The Company currently intends to schedule an extraordinary general meeting (“EGM”) in the first quarter of 2013 to request shareholder approval of the terms of the Transaction. The request to the shareholders for an EGM will be accompanied by a description of the terms of the Transaction that require such approval.
  • Similarly, the Company will seek consent from existing sukukholders for the proposed Transaction at a meeting of sukukholders in the first quarter of 2013. The request for sukukholders to approve an Extraordinary Resolution will also be accompanied by a description of the terms of the Transaction.
  • The Company will also, in accordance with its disclosure obligations under the ADX listing rules as well as the rules of the London Stock Exchange, keep all relevant parties informed of any material events.
  • If any of the terms of the Transaction as described above are amended in consultation with, and with the agreement of the Ad Hoc Committee, such amendments will be communicated to all relevant stakeholders in accordance with all applicable laws before the consent of such stakeholders is sought for the Transaction.
  • For the period from 31st October 2012 to closing, Existing Sukuk holders will receive a profit payment of 8% based on aggregate principal amount of the Existing Sukuk (payable at closing)

 

The Company has made available on its website (www.danagas.ae), a presentation that includes key Transaction terms, next steps, and an update on certain business operations.

The Company is being advised by the Blackstone Group International Partners LLP, Deutsche Bank (as Dealer Manager) and Latham & Watkins LLP. The Ad Hoc Committee is being advised by Moelis & Company UK LLP and Linklaters LLP.

 

For media enquiries only, please contact:

Brunswick

Azadeh Varzi / Alex Blake Milton

Tel: +442074045959 / +97144466270

Email: ',true);

 

Company Advisors:

The Blackstone Group International Partners LLP

Martin Gudgeon / Shirish Joshi

Tel: +44 20 7451 4398 / +44 20 7451 4067

Email: ',true);

 

Deutsche Bank AG, London (as Dealer Manager)

Reid Payne / Ege Akcasoy

Tel: +44 20 7547 6153

Email: reid.payne@db.com / ege.akcasoy@db.com

 

Deutsche Bank AG, Filiale Dubai

Rami Tabbara

Te: +971(4)4283951

E-mail: rami.tabbara@db.com

 

Ad Hoc Committee Advisors

Moelis & Company UK LLP

Charles Noel-Johnson / James Butcher

Tel: +44 20 7634 3568 / +44 20 7634 3639

Email: ',true);

 

Cautionary Note Regarding Forward-Looking Statements and Other Disclaimers

This press release contains forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “intends,” “may,” “will” or “should” or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this press release and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, our financial condition and liquidity, and the development of the industry in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if our results of operations, our financial condition and liquidity, and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this press release those results or developments may not be indicative of results, conditions or developments in subsequent periods.

All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or publicly revise any forward-looking statements, whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this press release.

Under no circumstances shall this announcement constitute an offer to sell, or the solicitation of an offer to buy, any securities nor shall there be any sale of the securities mentioned in this press release in any jurisdiction in which such offer, solicitation or sale would be unlawful. The potential transaction described in this announcement and the distribution of this announcement and other information in connection with the potential transaction in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Information regarding the potential transaction and the securities shall be contained in an offering document, if any, that may be produced by the issuer of the securities and potential investors should refer to such offering document when, and if, it becomes available. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This communication is not, and may not be used in connection with, an offer of securities for sale or the solicitation of an offer to buy securities in the United States, Australia, Canada, Japan, Bahrain or Qatar or any other jurisdiction where such offers or solicitations are not permitted by law. The Issuer has not registered, and does not intend to register, such securities in any of these jurisdictions and does not intend to conduct a public offering of such securities in any of these jurisdictions. In particular, no such securities of the Issuer have been nor will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and such securities may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. This information is not to be shown or given to any person other than the recipient, and is not to be forwarded to any other person, copied or otherwise reproduced or distributed to any other person in any manner whatsoever. Failure to comply with this directive can result in a violation of the Securities Act.

11Dana Gas announces terms of US$1 billion Sukuk refinancing 

Dana Gas the Middle East’s first and largest regional and private-sector natural gas company, announces that it yesterday received its share of the recent payment made by Iraq's Federal Government to the Kurdistan Regional Government.

The company's Joint Venture in the Kurdistan Region received USD 120 million, of which the Dana Gas share of 40% is USD 48 million.

"We are pleased to receive this payment, and are working with the Kurdistan Regional Government to further address the outstanding receivables," said Rashid Al-Jarwan, Executive Director and Acting CEO of Dana Gas.

Dana Gas is working to address outstanding receivables from its operations in both Egypt and the Kurdistan Region of Iraq. In Egypt the government has been settling the company's receivables for current production and working pro-actively with the company to address the USD 200 million of receivables from 2011.

The company recently reported substantial growth in 9-month profits, and has seen sustained growth in production, revenues and profits since inception in 2005.

12Dana Gas receives Kurdistan payment

​Sean Evers:
I would like to begin by asking Rashid Al-Jarwan, Executive Director of Dana Gas, what your
outlook will be vis-à-vis new partnerships, what they make look like. Do you expect to be
drilling oil in Abu Dhabi within five years?
Rashid Al-Jarwan:
Dana Gas, which was only formed in 2005, now produces about 70,000 barrel oil per day
equivalent through our operations in Egypt and the Kurdistan Region of Iraq. This positions us
as among the leading producers in these fast developing markets.

13RSJ Speech UAE Energy Forum Jan 2015

Sharjah
Dec 15 2014

​Dana Gas PJSC has been asked to keep the market updated with regard to the international arbitration case it filed in October 2013 along with Crescent Petroleum and Pearl Petroleum Company Limited (‘the Consortium’) before the London Court of International Arbitration (‘LCIA’) in order to obtain confirmation of the Consortium’s rights under its contract with the Kurdistan Regional Government of Iraq (KRG), which was signed in April 2007 and is governed by English law (‘the Contract’):

The LCIA Tribunal recently ordered the KRG to pay the Consortium US$100 million within a timeframe of 30 days by way of a second interim order. In default of its legal obligations, the KRG failed to make payment by the stipulated deadline of 17th November 2014 and as a consequence, the Tribunal's order became peremptory in nature, enabling its enforcement by the English Court.  With the Tribunal’s permission, on 12th December 2014, an application to the English Court has been made for enforcement of the order, with the prospect of sanctions being imposed on the KRG for non-compliance.

In addition to these interim measures ordered by the Tribunal, Dana Gas and its Consortium partners continue to pursue multi-billion dollar claims in the arbitration against the KRG for breach of contractual commitments, which will be determined in a final liability hearing that has been ordered by the Tribunal to take place the week of 20th April 2015.

Dana Gas and its Consortium partners reiterate their continued commitment to the Contract, the Kurdistan Region and all of Iraq, and sincerely hope that all outstanding contractual matters with the KRG be resolved, amicably and in good faith in the shortest possible time, within the contractual framework. This will in turn enable the full and proper development of the Khor Mor and Chemchemal fields as envisaged by the Contract, for the benefit of the people of the Kurdistan Region and all of Iraq. In the meantime Dana Gas and its Consortium partners continue to produce an average of over 80,000 barrels of oil equivalent (boe) per day, including 320 million cubic feet per day of gas that enables affordable electrical power generation in the Kurdistan Region.

Dana Gas and its Consortium partners are proud to be the largest oil and gas sector investors and cumulative producers in the Kurdistan Region of Iraq. To date, they have invested over US$ 1.2 billion in the Kurdistan Region and produced approximately 130 million boe of natural gas and petroleum liquids over the past six years, thereby enabling electricity provision and an economic and social transformation for the Kurdistan Region and its people.

16Disclosure dated 15 December 2014

​​Sharjah

6 Jun 2007

Company to Lead Consortium Constructing Gulf of Suez Gas Plant

Dana Gas, the largest regional private-sector natural gas company in the Middle East, has announced the completed acquisition of its Bahraini affiliate, Danagaz Bahrain. The Company will be owned 66% by Dana Gas and 34% by reputable Bahraini partners, and as its first investment will lead the consortium to build, own and operate the Gulf of Suez Gas Liquids Plant in Egypt. The Share Purchase Agreement was signed by HE Shaikh Hamad bin Ebrahim Al Khalifa and by Mr. Hamid Dhiya Jafar, Executive Chairman of Dana Gas.

The Gulf of Suez Gas Liquids Plant project involves the engineering, fabrication, installation and operation of a high-efficiency gas liquids extraction and manufacturing plant near Ras Shukheir, on the western shore of the Gulf of Suez, Egypt. The plant will be capable of processing approximately 55 billion cubic feet per year of natural gas and will produce approximately 120,000 metric tonnes per year of propane and butane in liquid form. The project will be executed by a joint venture company, Egyptian Bahraini Gas Derivative Company (EBGDCO), which will be owned forty percent by Danagaz Bahrain, forty percent by state owned Egyptian Natural Gas Holding Company (EGAS), and twenty percent by the Arab Petroleum Investment Corporation (APICORP). The company will also undertake the export marketing of liquid products from the plant.

“We are very pleased to be cementing this agreement with our esteemed partners in Bahrain, which further extends Dana Gas’s reach into the region and enhances our role as a truly regional natural gas company,” said Mr. Rashid Saif Al-Jarwan, General Manager of Dana Gas. “In addition, the Gulf of Suez Gas Plant Project, inshallah the first of many joint projects, further strengthens our strategic position in Egypt, and also enhances our regional capabilities in the region’s important gas processing sector, where we already have several gas processing plants, including in Egypt, the UAE and another two being established in Northern Iraq.”

The agreements for completion of the project have already been finalized and signed, including a long-term contract for supply of natural gas from the Egyptian General Petroleum Corporation (EGPC), as well as the Land Agreement and Sea Berth Agreement for export of the products. The Joint Venture Company (EBGDCO) is being incorporated as a “Free Zone” company under the Egyptian law on Investment Guarantees and Incentives. Implementation of the project will commence soon and is expected to take 18 months to completion. Civil engineering and installation construction will be done by local contractors. The plant will use proven state-of-the art technology that has been applied in many similar applications worldwide.

The plant will operate at highly efficient recovery rates, recovering 99% of the propane in the gas stream and 100% of the butane. Due to the nature of the gas supply, the project will manufacture approximately 110,000 tonnes per year of exportable international specification propane, which represents about 90 percent of the total gas liquid product from the plant.

Egypt is a net exporter of propane, and is a net importer of butane for domestic consumption. The propane from this project will be exported by ship to European markets such as France, Spain, Italy and Turkey, which import significant quantities of propane to meet national needs. Potentially higher margin Indian Ocean region markets are a future possibility. Propane is used for industrial fuel, space heating, automobile fuel and petrochemical feedstock. The butane produced, approximately 10,000 metric tonnes per year, will be sold on long-term contracts at the plant boundary to the Egyptian General Petroleum Company (EGPC) to help meet Egypt domestic requirements.

Dana Gas is already the 6 th largest producer of natural gas in Egypt, a country which has doubled its proven natural gas reserves in the last five years to 70 trillion cubic feet. The Company is aggressively pursuing active exploration drilling programmes in Egypt this year, and recently announced further new gas discoveries.

17Dana Gas Acquires Bahraini Affiliate

Sharjah

03 Jul 2007

Dana Gas PJSC, the Middle East’s first regional private-sector natural gas company, held an Extraordinary General Meeting (EGM) today during which the shareholders unanimously approved the issue of a convertible sukuk for US$ 1 billion which can be upsized. The Extraordinary General Meeting was chaired by H. E. Sheikh Ahmed Bin Sultan Al Qassimi, Deputy Ruler of Sharjah and Honorary Chairman of Dana Gas. Dana Gas had previously received the necessary approvals from the UAE Securities and Commodities Authority (SCA). Application has been made for the sukuk to be listed on the London Stock Exchange on the Professional Securities Market.

Commenting on the EGM and appointment of the banks, Mr. Hamid Dhiya Jafar, Executive Chairman of Dana Gas, said “This approval by the shareholders is a significant milestone in the continuing development of the Dana Gas business. Investors in the Islamic and international capital markets are demonstrating strong interest to participate in sukuk issues, particularly from cash generative companies such as Dana Gas with assets and a clear business growth strategy in the expanding natural gas sector. The sukuk proceeds will assist the company in strategic expansions and to pursue identified opportunities with the aim of enhancing shareholder value and providing a material positive impact to its shareholders. We have selected leading investment banks with considerable expertise in the international capital markets and the regional sukuk markets to lead in this offering.”

18Dana Gas Extraordinary General Meeting approves Convertible Sukuk

The companies will work together to identify strategic acquisitions and develop new natural gas projects

​Sharjah
07 Jul 2007
Dana Gas PJSC, the Middle East’s first and largest private sector regional natural gas company, has signed a Strategic Alliance Agreement with Abraaj Capital, the premier private equity firm in the Middle East, North Africa & South Asia (MENASA) region.

Through the Agreement, signed by Hamid Dhiya Jafar, Executive Chairman of Dana Gas, and Arif Naqvi, Executive Vice Chairman and Chief Executive Officer of Abraaj Capital, the two companies will work together in identifying and pursuing business opportunities in the Natural Gas and related Industries within the MENASA region.

"We are delighted to have entered into this strategic alliance with Abraaj. I know it will prove to be a rich and mutually beneficial relationship," said Hamid Dhiya Jafar, Executive Chairman of Dana Gas. "Abraaj has proven itself as a leader in the private equity business in our region, and by working with them in pursuing various projects in the Natural Gas Sector, Dana Gas will be able to capitalize on value creation capabilities and regional network which form Abraaj's deserved reputation for excellence in the region."

"This is a very important strategic relationship for us at Abraaj," said Arif Naqvi, Executive Vice Chairman and Chief Executive Officer of Abraaj Capital. Dana Gas is the largest regional natural gas company in the Middle East, with which we are pleased to formalize our long standing relationship in pursuit of the vast opportunities in MENASA’s oil & gas sector. Indeed, Middle East industrial energy consumption is forecast to grow at an annual rate of 3% over the next ten years, second only to China.“

Dana Gas has announced that allying with reputable companies and institutions from the region and internationally will form a key part of its growth strategy across the Middle East and North Africa natural gas industry, through a combination of strategic acquisitions and the development of new energy projects that contribute the region's economies, while serving the interests of its shareholders.

Dana Gas and Abraaj Capital enter into Strategic Alliance

19Dana Gas and Abraaj Capital enter into Strategic Alliance

​Sharjah
July 16 2007

Dana Gas PJSC (“Dana Gas”) announced today the launch of its debut issue of Exchangeable Trust Certificates (the “Sukuk”) for US$ 1 billion subject to upsizing.

The Sukuk will be structured as Sukuk al-Mudarabah and will mature in 2012.  The terms of the Sukuk will grant rights to Sukuk holders to exchange their Sukuk into ordinary shares of Dana Gas subject to certain conditions.

The investor roadshow is scheduled to start on 18 July 2007 in London. Further information regarding the timetable, size and structure of the proposed issue of the Sukuk will be released in due course.

Barclays Capital and Citi are acting as Joint Global Co-ordinators and Joint Bookrunners of the issue of the Sukuk.

Contact Details :

Dana Gas
Rashid Al-Jarwan - +971 6 556 9444
Neeraj Agrawal - +971 6 556 9444
Nasser Akram - +971 6 556 9444
 
Barclays Capital
Nick Smith - +44 20 7773 6536
Arul Kandasamy - +971 4 362 1013

Citi
Rupert Mitchell -  +44 20 7986 4000  
Ashwin Punde -  +44 20 7986 4000 

20Dana Gas announces the launch of its US$ 1 billion Exchangeable

Dana Gas PJSC, the Middle East’s first regional private-sector natural gas company, announced today the postponement of pricing of its announced convertible sukuk issue due to the recent volatility in international credit markets.

Sharjah
July 27 2007

Dana Gas appointed Barclays Capital and Citi as Joint Lead Managers and Bookrunners in connection with convertible sukuk issue, which was announced earlier this month.

“In the light of the extreme weakness currently being experienced in the global credit markets, Dana Gas has been advised by Barclays Capital and Citi to postpone the pricing of its equity-linked sukuk offering until September,” said Mr. Hamid Dhiya Jafar, Executive Chairman of Dana Gas.  “The Board of Directors and management of Dana Gas would like to extend its thanks for the warm response it has received from the global investment community over the past two weeks of marketing, and looks forward to continuing a strong dialogue with them.”

Dana Gas Finance Director, Mr. Neeraj Agarwal, added: “The Dana Gas investment opportunity was very well-received by investors in Europe, the Middle East and the Far East, with its unique identity as a listed company with a focus on the rapidly growing Middle East natural gas sector.  However in view of current extreme levels of volatility in the financial markets, and especially global credit markets, we were advised that it would be preferable to delay the sukuk pricing to secure better terms and this would be in the best interest of our shareholders.”

Dana Gas is currently active in all aspects of the growing natural gas business in several countries across the region, with major projects and operations in the UAE, Egypt and most recently in the Kurdistan Region in Northern Iraq, as well as new projects under development in other countries in the Middle East.  The Company’s $1.1 billion acquisition of Centurion Energy earlier this year placed Dana Gas as the sixth largest gas producer in Egypt, with further recent gas discoveries made as part of an active drilling program.

21Dana Gas Postpones Pricing of Sukuk Issue

Dabayaa-1 Exploration Well Proves New Finds, will Boost Production

Sharjah
August 8 2007

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, has announced a new gas and condensate discovery from its Dabayaa-1 exploration well in the West Manzala Exploration Concession in Egypt.  The well penetrated a gas bearing interval in the Lower Abu Madi Sandstone. An extensive DST programme was carried out giving a production rate of 16.5 million cubic feet of gas per day (2,800 barrels of oil equivalent), and 330 barrels of condensate per day through a 32/64” choke.
 
Centurion Petroleum Corporation, the upstream division of Dana Gas, drilled the Dabayaa-1 well to a total depth of 3,001 meters and encountered a hydrocarbon-bearing interval that extends over a 10 square kilometer area. Estimates of recoverable reserves from this new discovery are being evaluated.

“We are very excited about this gas discovery which confirms our high expectations for the hydrocarbon potential of the Abu Madi Formation in our concession,” said Mr. Rashid Saif Al-Jarwan, General Manager of Dana Gas.  “We are in a very favourable position within the Nile Delta and this discovery is opening up more hydrocarbon prospects to be drilled on the same concession.”

Dr. Hany Elsharkawi, Dana Gas Country Director in Egypt added: “The well is located only 6 km from our existing facilities and we expect to finalize the new field's development plan soon so as to quickly bring the well on production.  Dana Gas expects to commence production from Dabayaa-1 discovery by November of this year.”

Dana Gas is currently the 6th largest natural gas producer in Egypt, where over 64 companies are active in exploration and production, and the country has doubled its total gas reserves in the last five years to over 70 trillion cubic feet.  It is expected that Dana Gas will drill a total of 12 exploration wells in Egypt before the end of 2007

22Dana Gas Announces Additional Discoveries in Egypt

Revenues rise to AED 443m, with gross operating cash profits of AED 226m Total Assets increase 30% to AED 8.8 billion, long-term assets double

Sharjah
August 14 2007

Dana Gas, the Middle East’s first private sector regional natural gas company, has achieved first half year of operating profits, with total revenues for the half year ended 30 June 2007 rising to AED 443 million from 171 days of gas production operations, resulting in Gross Operating Cash Profit of AED 226 million. The financial results reflect consistent operating performance during the second quarter.

The First half of 2007 saw Dana Gas complete the US$1.1 billion acquisition of Centurion Energy International in early January, establishing Dana Gas as the 6th largest gas producer in Egypt and launching the company into the exploration and production sector of the Middle East’s natural gas industry.  Dana Gas also built upon this position in April 2007 by signing important gas agreements with the Kurdistan Regional Government of Iraq.

The Long-term Assets of the Company grew by more than 100% from AED 4.0 billion to AED 8.1 billion during the first half of 2007, with Total Assets increasing 30% to AED 8.8 billion and Shareholders Equity rising to AED 6.86 billion.  Net profit for the half year stood at AED 50 million, after one-time transaction fees of approximately AED 20 million and non-cash depreciation charges of AED 114 million, including those related to the Centurion acquisition.

“We are pleased with the continuous and consistent growth in the Company’s operations and results,” said Mr. Hamid Dhiya Jafar, Executive Chairman of Dana Gas.  “The first half of 2007 has seen Dana Gas achieve several milestones and grow into a major player in the fast-growing Middle East gas industry, with existing strategic positions in the UAE, Egypt and Iraq, and further new projects under development in several other countries across the region, supported by the services of over 300 professional staff located in an international network of offices in the UAE, Egypt, Saudi Arabia, the UK, Canada and now also Iraq. With some major projects coming onstream in the coming year, we look forward to building upon this solid foundation, and to continued future growth and expansion inshallah in the years ahead.”

Dana Gas recently announced new gas discoveries in exploration activities in its gas concessions in Egypt’s Nile Delta.  The Company expects to drill 12 new wells in 2007.

23Dana Gas Posts Half Yearly Operating Profits

Egypt Oil Minister visits site and renames Field “Al-Baraka”

Sharjah
4 Sep 2007

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, has made the first ever oil discovery in Southern Egypt from its El Baraka-1 exploration well drilled in Komombo Concession in Upper Egypt. The discovery was hailed by the Egyptian Petroleum Minister, H.E. Eng. Sameh Fahmy, who visited the site on location and renamed the new field “Al-Baraka” (meaning blessing). The Minister was accompanied by General Sameer Yousif, Governor of Aswan, and Hassan Akil, the president of the State Company Ganoub Al-Wadi Holding Petroleum Company (Ganope), and the Chairman of Supreme Committee for Petroleum Resources, and by Dr. Hany ElSharkawi, Dana Gas Egypt Country Director.
 
“We are very excited about the discovery” said Mr. Rashid Saif Al-Jarwan, General Manager of Dana Gas, as these results prove the presence of an oil province outside Egypt’s conventional producing areas. This important discovery could have a positive impact on the economic development of the Upper Egypt region.  Our forward plan is to work with our partner Ganoub El Wadi (Ganope) to analyze the test results and determine the full value of the discovery in terms of recoverable reserves and productivity of the various reservoirs.
 
Dr. Hany Elsharkawi, Dana Gas Country Director added that this is the first time for oil to be discovered in commercial volumes in Southern Egypt. The company is very much encouraged by these significant results and plans to continue its aggressive exploration/appraisal program in the area.  “We are working very closely with Ganope and the Oil Ministry to bring this oil on production as early as possible utilizing the existing transportation and refining facilities.”

The El Baraka-1 well was drilled by Dana Gas’ Upstream Division, Centurion Petroleum Corporation, to a Total Depth of 8712 feet and the well penetrated several oil bearing zones. Testing of the Early Cretaceous Abu Ballas Formation produced approximately 150 barrels of oil per day from a 39 foot perforated interval.  The recovered oil has a specific gravity of 37° API with a wax content similar to the crude oil currently being produced and exported in large quantities in Sudan.  Three additional intervals were also encountered in the deeper Early Cretaceous section and recovered various oil volumes on test.  Oil reserve estimates of the various zones of this discovery are currently being evaluated.

The Komombo concession is located 700 km from Cairo and 320 km from the closest refinery at Assiut.  It is currently envisaged that the early production scheme from this discovery will include transportation of the crude oil by rail road or Nile river barges to the Assiut refinery to the North.

24Dana Gas Makes Historic Oil Discovery in Southern Egypt

Sharjah
08 Oct 2007

The Sukuk, structured as a Sukuk al-Mudarabah, matures in 2012 and has a fixed profit rate of 7.5%. The reference share price, to which an exchange premium of 10% will apply, will be set in 9 months' time, reflecting the confidence in the Company’s future growth.

JPMorgan has acted as sole bookrunner on the offering

25Dana Gas announces terms of US$875 million Convertible Sukuk

​Dana Gas PJSC, the Middle East’s first regional private-sector natural gas company, today announced that its Convertible Sukuk Offering, launched on 4 October 2007, has been further increased by US$ 125 million to US$ 1 billion. This is the second increase from the initial issue size of US$750 million following continuing strong demand, primarily from international investors.

Sharjah

Oct 21 2007

JPMorgan acted as sole Bookrunner and Lead Manager on the Offering.

Barclays Capital and Citi are acting as Joint Lead Managers on the Offering

Mr. Hamid Jafar, Executive Chairman of Dana Gas, said: “We are delighted by the continued enthusiasm for our Sukuk offering which has encouraged us to increase the size of our issue for a second time. This clearly demonstrates the strength of international investor support for Dana Gas’s business and strategy, and for its unique position in the fast-growing Middle Eastern gas sector.”

Dana Gas has issued its innovative Sukuk as part of its strategy to put in place the most optimal structure to fund its rapid growth and expansion in the natural gas business sector.

Worldwide Islamic banking assets currently total around US$ 500 billion and are growing at over 15% per annum, with Islamic banks and financial institutions managing over US$ 250 billion of assets and a further US$ 200 to US$ 300 billion managed by the Islamic subsidiaries of international banks.

Dana Gas’s Sukuk is the first major accelerated convertible bond to be issued in the Middle East. These Sukuk are the most sophisticated equity-linked structures to be issued in the region, due to their unique features combining a forward-start pricing structure and delayed settlement within a Shariah compliant instrument. The issue of the convertible Sukuk offering was approved by the Company’s shareholders at an Extraordinary General Meeting held in July 2007.

Structured as a Sukuk al-Mudarabah, the Dana Gas Sukuk matures in 2012 and has a fixed profit rate of 7.5%. The reference share price, to which an exchange premium of 10% will apply, will be set in 9 months' time, reflecting the management’s confidence in the Company’s near-term future growth.

The Sukuk closing is expected by 31 October 2007. Post-closing it is intended that the bonds shall be traded on the Professional Securities Market of London Stock Exchange in London.

Dana Gas is currently active in all aspects of the rapidly growing natural gas business in several countries across the Region, with major projects and operations in the UAE, Egypt and most recently in the Kurdistan Region of Iraq, as well as new projects under development in other countries in the Middle East/North Africa/South Asia Region. The Company’s $1.1 billion acquisition of Centurion Energy earlier this year placed Dana Gas as the sixth largest gas producer in Egypt, with further subsequent gas discoveries made as part of an active exploration program. In April, Dana Gas also concluded agreements for gas projects with the Kurdistan Regional Government of Iraq, with a first phase investment of approximately US$ 400 million.

26Dana Gas Sukuk Offering Upsized to US$1 billion in Response to Strong International Investor Interest

​With more than 300 exhibitors from 22 countries

Erbil

Nov 1 2007

Dana Gas, the Middle East’s first and largest regional, private-sector natural gas company, has made a strong showing at the Erbil International Fair 2007, which took place in the capital of the Kurdistan Region of Iraq from October 29-November 1.

The fair, which is the third in a series of annual events organized by IFP Iraq, featured over 300 exhibitors from 22 countries. Dana Gas actively participated in the fair with a delegation led by the Company’s General Manager, Mr. Rashid Saif Al-Jarwan, presenting the current and upcoming projects for Dana Gas in Kurdistan.

In April of this year, agreements were signed in Erbil by His Excellency Nechirvan Barzani, the Prime Minister of the Kurdistan Regional Government, and Hamid Dhiya Jafar, Executive Chairman of Dana Gas, as part of a strategy to advance the considerable economic benefits available to the region through the successful development of its substantial gas resources.

As part of the Strategic Alliance Protocol, the “Kurdistan Gas City” project was launched - a major new gas-utilization industrial complex designed to promote private sector investment in a variety of gas-related industries for optimal use of the region’s natural gas resources, which will further benefit the country’s citizens through training, job creation, and the promotion of general economic activity.
Dana Gas was also appointed to develop, process and transport natural gas from the Khor Mor gas field, and to appraise the Chemchemal gas field for development, in order to provide urgently-needed natural gas supplies to fuel domestic electrical power generation plants currently under construction near Erbil and Suleymania.  The projects are currently under implementation on a fast track basis, in partnership with Dana Gas’ partner Crescent Petroleum, and expected to be completed by early 2008.  The first phase joint investment exceeds US$ 400 million, with a further $200 million for project expansion targeted in late 2008.

“I am delighted at the participation of Dana Gas in the third Erbil International Fair, which has given us an opportunity to present Dana Gas as a long-term partner of the Kurdistan Regional Government and of Iraq as a whole,” said Mr. Rashid Al-Jarwan, General Manager of Dana Gas.  “Dana Gas feels privileged to play an important hand in the advancement of Iraq and to work with the Kurdistan Regional Government of Iraq in fully utilizing and developing its natural gas resources. As a natural gas company from the Middle East region and for the region, we are able to find and provide ways of strengthening the national economies through gas field development, processing and transportation - all of which are essential components in developing a strong infrastructure and essential services for creating a stable and healthy economy to benefit the people of the Kurdistan Region and all of Iraq.”

Dana Gas is currently active in all aspects of the rapidly growing natural gas business in several countries across the Region, with major projects and operations in the UAE, Egypt and most recently in the Kurdistan Region of Iraq, as well as new projects under development in other countries in the Middle East/North Africa/South Asia (MENASA) Region.  The Company has just successfully carried out a US$ 1 billion Convertible Sukuk Offering of Islamic Bonds, which was increased twice in size following strong demand, primarily from international investors

27Dana Gas makes a strong showing at Erbil International Fair 2007

Quarterly Revenue rises to AED 276m, 15% increase over previous quarter Quarterly Gross Profit increases by 18% over previous quarter

Nov 14 2007

Dana Gas PJSC, the Middle East’s first and largest regional private sector natural gas company, has announced Quarterly Revenue of AED 276 million for the third quarter of 2007, an increase of 15% over the previous quarter resulting in Quarterly Gross Profit of AED 72 million. Net Profit for the quarter was AED 22 Million after adjusting for non-cash depreciation and depletion of AED 56 million and finance costs of AED 30 million.

The Company generated total revenue of AED 719 million in 264 days of production for the nine-month period ended 30 September 2007, with a Gross Profit of AED 184 million at a gross margin of 46% of net revenue. Dana Gas earned a net profit of AED 72 million after adjusting for non-cash depreciation and depletion of AED 170 million and finance costs of AED 100 million including a one-time transaction fee of AED 20 million.

With cash and bank balances of AED 216 million as of 30 September 2007, Dana Gas substantially increased this figure through completion on 31 October 2007 of US$1.0 billion (AED 3.67 billion) Convertible Sukuk issue, which was its maiden launch into the international capital markets. In spite of the currently challenging credit environment, the Sukuk was favorably received in the international investment community and established many firsts for the Middle East region. The Sukuk will assist the Company in strategic expansions and to pursue identified opportunities with the aim of enhancing shareholder value and providing a material positive impact to its shareholders.

“The Company has achieved a number of major milestones in 2007,” said Mr Hamid Dhiya Jafar, Executive Chairman of Dana Gas.  “From the start of the year with the  US$ 1.1 billion acquisition of Centurion and important assets in Egypt, followed by the signing of important agreements for the major project in the Kurdistan Region of Iraq, and of course most recently with the success of the US$ 1 billion Convertible Sukuk in international markets, Dana Gas has shown that, within less than two years since inception, it has emerged as an important player in the Region’s growing gas business and in the international energy industry. With major projects in the UAE and Northern Iraq coming on-stream early next year, and with the continued support of our founders and shareholders, we look forward to an exciting year ahead for the Company in 2008 and beyond, inshallah.”

The Group’s long-term assets have more than doubled from AED 4.0 billion in 2006 to AED 8.2 billion. Total assets of the Group have also increased by 30% to AED 8.9 billion during the period, with shareholder equity rising to AED 6.88 billion.

During this past quarter, Dana Gas made Southern Egypt’s historic first ever commercial oil discovery from its first exploration well drilled in the Komombo Concession.  The event was commemorated by a site visit by the Egyptian Minister of Petroleum, H.E. Eng. Sameh Fahmy, who named the field “Al Baraka” (meaning “the blessing” in Arabic).  Oil reserve estimates of the various zones of this discovery are currently being evaluated.

Earlier in the year, Dana Gas also entered into important agreements with the Kurdistan Regional Government in Northern Iraq to develop, process and transport natural gas and liquids from major gas fields to supply urgently needed new power plants currently under construction.  This highly significant project is currently under fast-track implementation in partnership with Crescent Petroleum, with first gas and petroleum liquid deliveries expected by early 2008 and a total planned investment of approximately US$ 650 million by the end of 2008.  The Company is also leading the development of the ‘Kurdistan Gas City’ Project to maximize economic value and job creation to the region and Iraq by encouraging gas-based industrial investment and development on a world-scale basis.

28Dana Gas achieves revenue of AED 719 million

Discussion Covers Company Activities and Investment Opportunities in Egypt

Sharjah

Nov 17 2007

His Excellency Dr. Ahmed Nazif, Prime Minister of Egypt, received at his offices in Cairo on Wednesday November 14, 2007 the Executive Chairman of Dana Gas, Mr. Hamid Dhiya Jafar, who updated the Prime Minister on the Company's ongoing operations and investments in Egypt, including recent gas and oil discoveries Dana Gas has recently made in the country and further projects under development.  The meeting was also attended by H.E. Eng. Sameh Fahmy, Egyptian Minister of Petroleum, and Dr. Hany El-Sherkawi, country director of Dana Gas in Egypt.  The discussions also covered additional gas projects Dana Gas is undertaking in Egypt and further investment opportunities in the country's growing energy sector. 

Mr. Jafar highlighted Dana Gas’s regional differentiator focus in terms of maximizing the benefits of natural gas to the country, and presented the Dana Gas City proprietary concept of developing local gas-based industries which the Company is developing in several countries of the Region, and which encompasses an integrated community optimizing natural gas utilization.The Dana Gas City concept is in line with Egypt’s current policy of maximising economic and social benefits of its natural gas resources to the country. Egypt's natural gas reserves have doubled in the last five years to over 70 trillion cubic feet.

Dana Gas, the Middle East's first and largest regional private-sector natural gas company, is very active in Egypt, where it is the 6th highest gas producer and among the 64 companies operating in Egypt. 

Earlier this year, Dana Gas paid US$1.1 billion to acquire Centurion Energy, a Canadian company with gas operations in Egypt.  Dana Gas will be investing more than US$80 million on exploration activities in 2007, and has already made several additional discoveries, including most recently the first commercial oil discovery ever made in Southern Egypt, which proves the petroleum generating capability of the province, with the promise of further commercial discoveries in the area.

The Company is also leading a consortium to build and operate the Gulf of Suez Gas Liquids 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 in liquid form, with the products to be exported to international markets, and thus providing significant value-add to Egypt’s gas resources.

Headquartered in Sharjah in the UAE, and listed on the Abu Dhabi Stock Market (ADSM:DANA), Dana Gas has founders and shareholders from across the GCC and the Middle East region, and is active in all sectors of the natural gas industry across the whole gas value chain, with projects already under implementation in the UAE and the Kurdistan region of Iraq, and business development activities throughout the MENASA region. The Company recently closed a US$1 billion Islamic Sukuk convertible bond offering which met with strong demand from international investors.

29Egyptian Prime Minister Receives Dana Gas Chairman

Khor Mor project is 60% complete with gas production on target for early 2008

Sharjah
Nov 21 2007

Dana Gas, the Middle East’s first and largest regional private-sector natural gas company, yesterday inaugurated its new Suleymaniya office in the Kurdistan Region of Iraq.  The office was officially opened by His Excellency Othman Shwani, Minister of Planning of the Kurdistan Regional Government (KRG), and Mr. Hamid Dhiya Jafar, Executive Chairman of Dana Gas, in the presence of many local officials, members of Dana Gas’ board of directors, and senior management of the company.

In April of this year, agreements were signed with Dana Gas by His Excellency Nechirvan Barzani, the Prime Minister of the Kurdistan Regional Government, to produce, process and transport natural gas from the Khor Mor gas field and to appraise the Chemchemal gas field for development, in order to provide natural gas supplies to fuel domestic electric power generation plants currently under construction near Erbil and Suleymania.

The Khor Mor project is now 60% complete with first gas production on schedule for early 2008.  Seismic activities on both the Khor Mor and Chemchemal fields have also started, with development drilling of the Khor Mor early next year, followed by the drilling of the Chemchemal appraisal wells.

“Dana Gas is proud to play an important role in the advancement of the Kurdistan Region of Iraq, through fast-track implementation of these vital infrastructure projects.  We are also honored to work with the Kurdistan Regional Government for the development of the long-term plan to maximize the economic benefit of natural gas resources for the region,” said Mr. Hamid Dhiya Jafar, Executive Chairman of Dana Gas, who added: "As a company from the region, by the region, and for the region, Dana Gas is committed to applying its knowledge and resources to benefit the people of the Middle East, and we intend to play a major role in all parts of Iraq by increasing our investments the Iraqi natural gas sector and its related industries for the benefit of the people.”

As part of the ‘Strategic Alliance Protocol’ also signed with the Kurdistan Regional Government, Dana Gas is carrying out a gas optimization study and master plan for the Kurdistan region in order to maximize the economic benefit of its natural gas resources. The Company has launched the 'Kurdistan Gas City' project as a major new gas utilization industrial complex designed to promote private sector investment in a variety of gas-related industries for optimal use of the natural gas, which will further benefit local citizens through training, job creation, and the promotion of economic growth.

Dana Gas, headquartered in Sharjah (UAE) with a network of five offices in four continents, plans to open further offices throughout the Middle East, North Africa and South Asia to enhance its business development activities and projects.

30Dana Gas Inaugurates new office in Iraqi Kurdistan

New “Dabaaya 2” well confirms good gas productivity in Abu Madi Formation. Dana Gas the only regional private sector firm to make 2007 Middle East discoveries

Sharjah
Dec 17 2007

Dana Gas, the Middle East's first and largest regional private-sector natural gas company, has announced the discovery of a new gas well drilled in its Egyptian concessions, adding a  further new well  to what  were already considered important earlier discoveries by the Company in Egypt’s Nile Delta, first announced last August.

The Dabayaa-2 delineation well was drilled by Centurion Petroleum Corporation, the upstream division of Dana Gas in Egypt, on the eastern side of the West Manzala concession, in order to appraise the Dabayaa-1 discovery well in the Lower Abu Madi Sandstone formation.

The well was drilled to a total depth of approximately 3,000 metres and encountered gas bearing zones in both the Upper and Lower Abu Madi formations.  The Lower Abu Madi formation was tested and found to flow at a gas rate of over 10 million cubic feet per day, and 240 barrels per day of condensate, and will provide a further boost to Dana Gas production and revenues from Egypt.

“We are very pleased with the results we obtained from Dabayaa-2, which confirm our high expectations for the potential of the Abu Madi formation in this block,” said Dr Hany El-Sherkawi, Dana Gas Egypt Country Director.  “The Lower Abu Madi formation was tested previously, but this is the first time that we have been able to confirm the productivity in the Upper Abu Madi formation,” he continued.  “The gathering pipe line from Dabayaa-2 is under construction, and the well should be flowing on-stream before the end of December.”

Dana Gas is the 6th highest natural gas producer in Egypt from among the 64 companies operating in the country.  A report this week 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 & gas discoveries in 2007, with important discoveries already announced from wells drilled earlier this year including: El-Wastani EWW-2, West Manzala-1, and Komombo -1, which was re-named “Al-Baraka” by the Egyptian Petroleum Minister, HE Eng. Sameh Fahmy.

Last month HE Dr. Ahmed Nazif, Prime Minister of Egypt, received the Dana Gas Executive Chairman, Mr. Hamid Jafar, who updated the Prime Minister on the Company's ongoing operations and investments in Egypt, including the first commercial oil discovery ever made in Southern Egypt in early September 2007 and further projects under development.

Mr. Jafar also presented the “Dana Gas City” proprietary concept of developing local gas-based industries which the Company is developing in several countries of the Region, and which encompasses an integrated community optimizing natural gas utilization.  The Dana Gas City concept is in line with Egypt’s current policy of maximising economic and social benefits of its natural gas resources to the country.  Egypt's natural gas reserves have doubled in the last five years to over 70 trillion cubic feet.

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), with construction on schedule for the first quarter of 2008.

31Dana Gas Announces Further Egypt Gas Discovery

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.”

32Dana Gas Exceeds 2007 Production Goals in Egypt

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.

33Former Head of KOC joins Dana Gas Executive Team
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