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
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.
Khor Mor project is 60% complete with gas production on target for early 2008
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.
Discussion Covers Company Activities and Investment Opportunities in Egypt
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.
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.
With more than 300 exhibitors from 22 countries
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.
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$750 million following continuing strong demand, primarily from international investors.
Oct 21 2007
JPMorgan acted as sole Bookrunner and Lead Manager on the Offering.
Barclays Capital and Citi are acting as Joint Lead Managers on the Offering
Mr. Hamid Jafar, Executive Chairman of Dana Gas, said: “We are delighted by the continued enthusiasm for our Sukuk offering which has encouraged us to increase the size of our issue for a second time. This clearly demonstrates the strength of international investor support for Dana Gas’s business and strategy, and for its unique position in the fast-growing Middle Eastern gas sector.”
Dana Gas has issued its innovative Sukuk as part of its strategy to put in place the most optimal structure to fund its rapid growth and expansion in the natural gas business sector.
Worldwide Islamic banking assets currently total around US$ 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.
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
Egypt Oil Minister visits site and renames Field “Al-Baraka”
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.
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
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.
Dabayaa-1 Exploration Well Proves New Finds, will Boost Production
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.
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.
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 $1.1 billion acquisition of Centurion Energy earlier this year placed Dana Gas as the sixth largest gas producer in Egypt, with further recent gas discoveries made as part of an active drilling program.
July 16 2007
Dana Gas PJSC (“Dana Gas”) announced today the launch of its debut issue of Exchangeable Trust Certificates (the “Sukuk”) for US$ 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 :
Rashid Al-Jarwan – +971 6 556 9444
Neeraj Agrawal – +971 6 556 9444
Nasser Akram – +971 6 556 9444
Nick Smith – +44 20 7773 6536
Arul Kandasamy – +971 4 362 1013
Rupert Mitchell – +44 20 7986 4000
Ashwin Punde – +44 20 7986 4000
The companies will work together to identify strategic acquisitions and develop new natural gas projects
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
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.”
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.