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.
Nov 10 2010
- Production increases 24% compared to 3Q 2009
- Gross Profit increases 25% compared to 3Q 2009
- Two Further gas discoveries in Egypt
3 Months to September 30th 2010
Dana Gas PJSC, the Middle East’s largest regional private sector natural gas company, has announced its financial results for the quarter ended 30th September 2010.
Revenue from the sale of hydrocarbons increased to AED 407 million, with gross profit of AED 179 million. These figures represent increases of 13% and 25% respectively, compared to the same period last year. This is due to strong production growth, amounting in aggregate to 24%, from the Company’s operations in Egypt (where twelve fields are now producing) and in the Kurdistan Region of Iraq, where production from the Khor Mor field continues to increase.
The Company made a Net Profit after tax of AED 33 million in the third quarter, a significant improvement on 3Q 2009 loss of AED 79 million, which was due to higher write offs of unsuccessful exploration wells amounting to AED 110 million in Q3 2009 compared to AED 15 million in Q3 2010.
The Net Profit after tax for 3Q 2010 excludes an unrealized gain of AED 249 million for the Company’s investment in MOL (the Hungarian oil and gas company, who are one of our partners in Kurdistan), booked directly to equity in line with the Company’s published accounting policy and reported within “Comprehensive Income”
Earnings before interest, tax, depreciation, amortization and exploration (EBITDAX) for 3Q 2010 were AED 260 million, a 27% increase compared 3Q 2009.
Dana Gas Egypt’s operations continue to deliver strong results, producing 3.9 million barrels of oil equivalent (boe) during 3Q 2010, an increase of 15% compared to the same period last year. This included production from the Sharabas and Faraskur fields, which were brought on stream in August 2010 via the El Wastani gas plant continuing the Company’s well established ability to bring its gas discoveries into production rapidly and cost effectively.
In the Kurdistan Region of Iraq Dana Gas, through its 40% share, produced 1.2 million boe of gas and condensate during the quarter, an increase of approximately 72% over the same period in 2009. The first train of the LPG Plant at Khor Mor is in partial operation, producing gas and condensate. Production of LPG is expected to start within the next few weeks which will further increase production.
Dana Gas’ Continued Exploration Success in Egypt
Dana Gas also announces two new gas discoveries in the Nile Delta, Egypt. The first is West Ward Delta-1, which tested at 12.9 million standard cubic feet per day (MMscfpd) of gas from the Kafr El Sheikh formation. The preliminary estimate of mean recoverable reserves from this field is in the range of 10 to 17 billion cubic feet (Bcf) of gas. The second discovery is Salma Delta North-1 which tested at 16.1MMscfpd plus 561 barrels per day of condensate. Further appraisal is required to quantify the reserves range of this discovery; however with a gas water contact 40 metres deeper than the adjoining Salma Delta field it represents a new pool with considerable additional potential. These discoveries are in addition to the previously announced discovery during the third quarter, South Abu El Naga for which the reserves range is 50 to 90 Bcf of gas plus 1 to 2 million barrels of condensate. This brings the total discoveries in Egypt during 2010 to six out of eight wells: El Panseiya, South Faraskur, Ward Delta, South Abu El Naga, West Ward Delta and Salma Delta North.
Commenting on the quarterly performance, Dana Gas Chief Executive Officer, Mr. Ahmed Al Arbeed, said: “Dana Gas continues to deliver consistent and strong financial results. Our operations continue to perform in a very satisfactory manner, especially in Egypt and we are proud of our exploration success in the Nile Delta and our continued track record of quickly bringing these fields into production. In the Kurdistan Region of Iraq, during the period we have successfully increased gas production to meet the requirements of the power stations at Erbil and Suleymaniah and the first train of our LPG plant through which we have been producing gas since the middle of the year will shortly be producing LPG.”
Note: Dana Gas will be hosting a conference call to review these results at 2pm UAE time on Wednesday 10th November 2010. Full details are on the Dana Gas website www.danagas.ae
Dana Gas, the Middle East’s first and largest regional private sector Natural Gas Company, is taking part in the 14th Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), held from 1 – 4 November.
Sharjah, 02 November, 2010
In a keynote address during the Executive Plenary Session titled ‘Delivering Energy in the Low Carbon Era: Challenges and Opportunities, Mr. Ahmed Al Arbeed, CEO, Dana Gas, stressed the importance of a more active role on behalf of the private sector, which would ultimately benefit the region as a whole.
In his speech Mr. Al Arbeed called for a concrete adaptation across the region to meet increasing demand for Gas, given the fact that it sits on roughly 45 percent of the world’s proved reserves of gas, and only provides 19 percent of the global gas supply.
“MENA countries will need to priorities gas-sector investments, following the lead of countries like Qatar and Egypt, if the region as a whole is to do its part to meet the global energy challenge and to capture an appropriate share of the emerging global gas market,” Al Arbeed said.
The energy sector in the Middle East has remained largely in the public domain since the string of nationalizations in the 1970s. Dana Gas, which was established in 2005, was the first private company involved in the Natural Gas sector and serves as a prime example of how a private company can provide unsurpassed quality of service to governments seeking to tap into their Natural Gas resources.
In his closing remarks, Al Arbeed lauded the flexibility and ability of the private sector in the energy industry to perform under a range of circumstances, which will ultimately gather results in terms of increased efficiency and higher levels of output: “The private sector has a lot to offer. It is highly efficient, fast moving, entrepreneurial and innovative: it has to be, to compete Internationally for capital.”
Dana Gas’ participation at the event was strong, having exhibited amongst 1,500 companies and organizations from over 56 countries. The presence of Dana Gas at one of the region’s most important energy exhibitions and conferences underscores its presence and role as the largest regional private sector natural gas company.
ADIPEC is a leading energy industry conference in the UAE and across the Middle East, with leading national and international companies, energy industry professionals, commentators, government officials and industry players participating in the event. ADIPEC 2010 is expected to host over 45,000 industry participants from over 90 countries.
Oct 30 2010
Dana Gas, the Middle East’s first and largest regional private sector Natural Gas Company is participating at the World Economic Forum (WEF) on Middle East and North Africa summit, themed “Purpose, Resilience and Prosperity”. The event is being held on 26 to 28 October, 2010 in Marrakech, Morocco. Dana Gas is one of the leading and the only Energy company- summit supporter.
The company delegate to the summit was headed by Mr. Ahmed Al Arbeed (CEO), who was one of the leading panelists and delivered the opening note of the energy session titled “Solving the New Energy Equation”. The delegate included Shaikha Hanadi Nasser Al Thani, Director of the Board.
In his panel address which took place on the day 1 of the event, Mr. Al Arbeed outlined the key components involved in solving the energy challenges which regional governments and companies are set to face in the future, emphasizing on the importance of cooperation between the two.
Mr. Al Arbeed added “The energy stability can be realized by the cooperation between the resources holders and the companies to get the best of the energy resources. The cooperation would establish bare essentials to prosperity, including common interest and a power-balance, as both parties work in tandem together to address the needs of resource-holders, investors and consumers.
The WEF on Middle East and North Africa Summit brings together the top government, business and civil society leaders to share insight into the challenges and solutions facing the region’s development and growth. The aim of this year’s summit is to regenerate regional growth and development strategies, in light of critical international risks including unstable oil prices, water scarcity and migration.
The World Economic Forum is an independent international organization. Established 38 years ago as a Swiss non-profit foundation, the forum aims to advance progress on a number of key global concerns by championing a world-class corporate governance system. Dana Gas is a member of WEF “Global Growth Company”. The membership puts Dana Gas among the top 250 companies from over 50 countries selected by a leading independent, international organization.
Dana Gas PJSC, the Middle East’s first and largest regional private sector Natural Gas Company has announced a new gas discovery in the Nile Delta, Egypt.
Sharjah, 5 September 2010
The discovery well ‘South Abu El Naga-1ST’, located in the West El Manzala Concession, encountered 7.2 and 12.6 metres of net pay in the Abu Madi Upper and Lower formation respectively, and 4.8 metres in the Kafr El Sheikh formation.
A multi rate test was carried out for a 12 metre interval in the Abu Madi Lower reservoir, and yielded a production rate of 19.4 million standard cubic feet per day (“MMscfpd”) of gas and 1160 barrels per day (“bpd”) of condensate.
This is the fourth 2010 gas discovery for Dana Gas in Egypt, following the three previously announced gas discoveries: El Pansieya-1, South Faraskur-1 and Ward Delta-1.
The preliminary reserves estimate for the South Abu El Naga-1 ST is in the range of 50 to 90 Billion standard cubic feet of gas, with 1 to 2 million barrels of associated condensate. The South Abu El Naga-1 ST discovery will be further appraised, then development options will be studied.
In addition, Dana Gas is pleased to announce the commencement of new production in August from the Sharabas & Faraskur fields via its El Wastani gas plant. This brought the total Egypt production to 230 MMscfd, plus 7000 bpd of condensate and LPG on August 31st 2010. This is equivalent to 45,500 barrels of oil equivalent per day, a 20% increase on the production rate at the start of 2010.
Mr. Ahmed Al Arbeed, Dana Gas CEO, said “Our dedicated teams in Egypt continue to deliver excellent results. We are very pleased that this well has been successful. Dana Gas Egypt’s ability to develop its discoveries in a timely fashion is delivering gratifying increases in our production volumes for 2010.”
Dr. Hany Elsharkawi, Dana Gas Egypt President said: “The discovery at the South Abu El Naga-1ST well adds significantly to the company’s hydrocarbon reserves. The rapid development of the Sharabas and Faraskur fields has brought a good rise in production levels, which have been steadily increasing over the past 3 years. We are delighted that the extensive work by our exploration team to define drillable prospects, followed by an effective drilling campaign, continues to produce positive results.”
Aug 11 2010
- Production increases 29% compared to 2Q 2009
- Revenue increases 41% compared to 2Q 2009
- Gross Profit increases 84% compared to 2Q 2009
3 Months to June 30th 2010
Dana Gas PJSC, the Middle East’s largest regional private sector natural gas company, has announced its financial results for the quarter ended 30th June 2010.
Revenue from the sale of hydrocarbons increased to AED 428 million, with gross profit reaching AED 179 million. These figures represent increases of 41% and 84% respectively, compared to the same period last year. This is due to strong production growth, amounting in aggregate to 29%, from the Company’s operations in Egypt (where ten fields are now producing) and in the Kurdistan Region of Iraq, where production from the Khor Mor field continues to increase. It is also due to higher market prices for, condensate, LPG and oil during the quarter, as compared to 2Q 2009.
The Company made a Net Profit after tax of AED 33 million in the second quarter. On an “underlying” basis this Net Profit after tax has increased by some AED 62 million compared to 2Q 2009.The underlying basis strips out significant “one off” items in the second quarter 2009 results (chiefly the sale of a 10% interest in Pearl Petroleum, which holds our interests in the Kurdistan Region of Iraq (“KRI”), exploration expenses and impairments) and is intended to provide for a more meaningful comparison.
The Net Profit after tax for 2Q 2010 excludes an unrealized loss of AED 213 million, due to a decline in the value of the Company’s investment in MOL (the Hungarian oil and gas company, who are one of our partners in Kurdistan), booked directly to equity in line with the Company’s published accounting policy and reported within “Comprehensive Income” However, on a cumulative basis, the Company has recorded a total unrealized gain on this investment, from the date of acquisition to the end of June 2010, of AED 297 million.
Earnings before interest, tax, depreciation, amortization and exploration (EBITDAX) for 2Q 2010 were AED 252 million.
Dana Gas Egypt’s operations continue to deliver strong results, producing 3.80 million barrels of oil equivalent (boe) during 2Q 2010, an increase of 19% compared to the same period last year. This included production from the Orchid field, which was brought on stream in April 2010. The Company also added its third new field gas discovery of 2010, Ward Delta-1 in the Nile Delta, which follows on from the El Panseiya-1 and South Faraskour-1 discoveries in the first quarter. This continues the Dana Gas exploration track record with three discoveries from four wells in the first half of 2010, building on the 2009 performance of eight discoveries from twelve exploration wells.
In the Kurdistan Region of Iraq Dana Gas, through its 40% share, produced 1.06 million boe of gas and condensate during the quarter, an increase of approximately 88% over the same period in 2009. The first train of the LPG Plant at Khor Mor is in partial operation, producing gas and condensate. Production of LPG will start later in 2010, which will further increase production.
Dana Gas is pleased to report that it has recently been recognised as a “First Category” company by the Securities and Commodities Authority (SCA) reflecting the Company’s adherence to the transparency requirements of the SCA, compliance to its laws and regulations, in addition to its accessibility to all stakeholders.
Commenting on the quarterly performance, Dana Gas Chief Executive Officer, Mr. Ahmed Al-Arbeed, said: “I am pleased to report that Dana Gas has delivered another consecutive quarter of good financial results. In Egypt, our development programme continues to bring our gratifying stream of undeveloped discoveries into production and our fourteen well exploration programme for 2010 continues to deliver class leading results with three discoveries from our first four wells. We continue to target a 20% increase in production for the full year compared to 2009 and, with the majority of our exploration drilling in the second half of the year, I look forward to hopefully being able to bring more positive news.”
“In the Kurdistan Region of Iraq, production continues to grow as we supply gas to meet the demands of the Erbil and Bazian power stations and it remains a source of pride to Dana Gas that this region of Iraq is one of the few with a reliable electricity supply. We are producing gas and condensate through our new permanent facilities and the first train of the LPG plant at Khor Mor will commence LPG production shortly. Consequently, Dana Gas’ growth is set to continue.” said Mr. Al-Arbeed.
James Dewar, Chief Financial Officer said “We have again delivered a profit with minimal exceptional items, in line with expectations, which reflects Dana Gas’ sound financial and operational platform. We are a growing Company and this stable base will ensure that as our production volumes increase, so should our profitability and cash generation”.
May 13 2010
- Production increases 36% compared to 1Q 2009
- Revenue increases 66% compared to 1Q 2009
- Gross Profit increases 138% compared to 1Q 2009
3 Months to March 31st 2010
Dana Gas PJSC, the Middle East’s largest regional private sector natural gas company, has announced its financial results for the quarter ending 31st March 2010.
Revenue from the sale of hydrocarbons increased to AED 411 million, with gross profit reaching AED 162 million. These figures represent increases of 66% and 138% respectively, compared to the same period last year. This is due to very strong production growth, amounting in aggregate to 36%, from the Company’s operations in Egypt, where nine fields are now producing, and in Iraq where production from the Khor Mor field continues to increase compared to 1Q 2009. It is also due to higher market prices for oil, condensate and LPG during 2010.
Earnings before interest, tax, depreciation, amortization and exploration (EBITDAX) increased by just over 100% to AED 228 million as compared to the first quarter of last year. The Company made a Net Profit after tax of AED 33 million in the first quarter compared to a loss of AED 32 million in the first quarter of 2009.
The above Net Profit after tax excludes an unrealized gain of AED 140 million in the quarter for the Company’s investment in MOL (the Hungarian oil and gas company, who are one of our partners in Kurdistan), booked directly to equity in line with the Company’s published accounting policy. The “Comprehensive Income” for the 3 month period is AED 173 million compared to a loss of AED 32 million in same period for 2009.
Dana Gas Egypt’s operations continue to deliver strong results, producing 3.53 million barrels of oil equivalent during the first quarter, an increase of 33% compared to the same period last year, which included production from the Sama field which was brought on stream in February 2010, eight months after its discovery. The Company added two new gas discoveries in the Nile Delta, El-Panseiya-1 and South-Faraskour-1, from a total of three exploration wells drilled during the quarter, building on the excellent 2009 performance of eight discoveries from twelve exploration wells.
In the Kurdistan Region of Iraq Dana Gas, net to its 40% share, produced 0.97 million barrels of oil equivalent of gas and condensate during the period, an increase of approximately 50% over the same period in 2009. Construction of the LPG Plant at Khor Mor is nearing completion and following commissioning activities, will further increase production by year end.
Commenting on the quarterly performance, Dana Gas Chief Executive Officer, Mr. Ahmed Al-Arbeed, said: “I am pleased to be able to report that Dana Gas is delivering good financial results from its strong operational performance in both Egypt and Iraq. In Egypt, we have an active development programme with eight discoveries to bring on stream and our fourteen well exploration programme for 2010 is off to a very satisfactory start with two discoveries from our first three wells. We continue to target a 20% increase in production for the full year compared to 2009.”
“In the Kurdistan Region of Iraq, production continues to grow as we supply gas to meet the demands of the Erbil and Bazian power stations. In the past few days, we have commenced gas production through the first train of our LPG plant with LPG production to commence in the third quarter” said Mr. Al-Arbeed.
James Dewar, Chief Financial Officer said “These are a good set of results and are in line with our expectations for the quarter. As Dana Gas’ production volumes continue to grow, so does our ability to deliver increasing after tax profits and operational cash flow. As we look ahead, our financial position remains robust and we continue to maintain a good level of liquidity to manage our operational needs”.
Note: Dana Gas will be hosting a conference call to review these results at 2pm UAE time on Thursday 13th May 2010. Full details are on the Dana Gas website – www.danagas.ae
Apr 21 2010
Dana Gas, the Middle East’s first and largest regional private-sector natural gas company yesterday (Wednesday, 21st April 2010) held its Annual General Assembly, as well as an Extra-ordinary General Assembly Meeting (AGM).
The AGM approved the Board of Directors’ Report on the company’s activities and financial position for the Financial Year ending 31st December 2009, the Auditors’ Report for 2009, as well as the distribution of a dividend payment to shareholders on the basis of a 10% bonus share issue.
Dana Gas’ Chairman, Mr. Hamid Jafar, told those in attendance that the group has grown stronger, both financially and operationally, and will continue to expand its existing portfolio and explore further business opportunities to enhance shareholder value.
In his report to the AGM, on behalf of the Board of Directors, Mr. Jafar, said: “Dana Gas has stayed true to its promised identity and motto of being ‘From the Region, By the Region, For the Region’. We are developing solid business relationships and making important progress throughout the MENASA region as Dana Gas’ reputation and brand is being increasingly recognized for its excellence. In light of the need to retain cash to support the company’s growth and while appreciating the loyalty and support of our shareholders, the Board of Directors has recommended that a dividend payment of 10% bonus shares is issued to shareholder. This was approved by the shareholders.”
Dana Gas’ CEO, Mr. Ahmed Al Arbeed said: “Dana Gas had a strong operational and financial performance during 2009, and I am proud of results, achievements, financial status and our corporate governance processes.”
Dana Gas reported that revenue from the sale of hydrocarbons had increased to AED1.28 billion in 2009, with gross profit reaching AED 436 million, representing increases of 12% and 69% respectively, compared to 2008. According to Al Arbeed, this reflects the company’s ongoing and growing operations in Egypt, plus a year of condensate production and sales from Khor Mor field in Kurdistan Region of Iraq.
He added “in terms of operations in Egypt, we have increased our proven plus probable reserves by 40% to reach 132 million barrels of oil equivalent (MMboe), while production is up by 20% to reach an average of 37,400 barrels of oil equivalent per day (boepd). We are planning another increase in production in 2010. In Iraq, we are one of the largest investors in the Kurdistan Region. We have produced gas for two power stations in the region and plan to double our average daily gas production in 2010. In the UAE, we are moving ahead with the development of the Zora field, offshore Sharjah and Ajman. The UAE Gas Project to process and transport the imported gas continues to await the commencement of gas supplies by the National Iranian Oil Company (NIOC), in accordance with the long-term gas supply agreement between our partner Crescent Petroleum and NIOC. We completed building and connecting our facilities a long time ago, but the gas supplies have not yet started up due to the delay in the development of production facilities in Iran”.
Mr Al Arbeed concluded by stating: “The forthcoming year promises to be an exciting year for Dana Gas and we are looking forward to the challenges and the opportunities. We believe we will continue to demonstrate that we are a force for good in the region. Gas is the fuel of the 21st century; and the MENASA region is one of the world’s most prolific sources of gas. Dana Gas is well positioned to add value for all our stakeholders.”
Al Arbeed: “We are committed to promote and develop the energy sector of the region and support events such as MEPEX”
Sharjah, 10 March 2010
Dana Gas, the Middle East’s first and largest regional private sector natural gas company, is participating in and sponsoring the inaugural Middle East Prospect Exhibition (MEPEX), being held under the patronage of H. E. Dr Abdul Husain bin Ali Mirza, Bahrain’s Minister of Oil and Gas Affairs, and Chairman of the National Oil and Gas Authority (NOGA) in Bahrain from 8 to 10 March 2010.
MEPEX was officially opened by Dr. Mirza, who welcomed those present and congratulated them on being part of the very first edition of what is expected to become one of the region’s premier industry events.
“This exhibition is a new initiative by NOGA to boost the kingdom’s status as an international platform for business practice in the oil and gas field and to lure investments from across the globe,” said Dr. Mirza during his opening address.
“It aims not only to bring together oil and gas exploration and production (E&P) companies and technical advisors under one roof, but also to help these parties forge strategic alliances, and enabling them to take advantage of numerous investment opportunities.”
MEPEX serves as a pure marketplace to establish strategic alliances for initiating and doing business deals, and the event brings together some of the most influential players, government representatives, senior executives, industry figures, as well as regional and international investors that are active in the E&P business today.
Speaking on the importance of this event, Dana Gas CEO, Ahmed Al Arbeed said: “MEPEX was established as a regionally-focused event intended to provide a marketplace for the trading of oil and gas prospects and producing properties. And Dana Gas, being the Middle East’s leading private sector naturalgas company, is committed to promoting and supporting initiatives and events such as MEPEX through participation and sponsorship.
“In addition, the strong participation of other major organizations such as Oxydental, Halliburton, and Tokamak, among others, indicates the importance and potential of this event.”
Added Al Arbeed: “The Middle East is going from strength to strength as a global oil and gas supply region, backed by huge untapped reserves, and it is now more important for those of us in the industry to stay abreast of developments and trends, which is what MEPEX is about. Events such as these allow us to come together with other industry players – from both the public and private sector – to determine what the future of the region’s exploration and production industry will be.”
Dana Gas is the sixth largest gas producer in Egypt, and has made a number of significant discoveries in the Nile Delta – the latest being the ‘El Panseiya-1’ and ‘South Faraskour-1’ wells in the West El Manzala Concession – since beginning its exploration and drilling campaign in 2008. These two discoveries have added an estimated 35-70 billion cubic feet (bcf) of gas reserves. The company also recently announced the first production from its West Qantara Concession in the Nile Delta from the Sama Field, which was put on stream in February, five weeks ahead of schedule, and a mere eight months after discovery.
Mar 7 2010
Estimated 35-70 billion cubic feet of gas reserves added and a new gas field brought on stream ahead of schedule
Dana Gas PJSC, the Middle East’s first and largest regional private sector natural gas company, has announced two gas discoveries in the Nile Delta, Egypt .
The first discovery was at ‘El Panseiya-1’ in the West El Manzala Concession, which encountered 11 metres of net pay in the Kafr El Sheikh formation and produced 10 million standard cubic feet per day (mmscfpd) of dry gas. The preliminary estimate of the recoverable reserves is from 8-13 billion cubic feet (bcf) of gas.”
The second discovery, ‘South Faraskour-1’, also in the West El Manzala Concession encountered 20 metres of net pay in the Abu Madi formation and 1.4 metres in the Kafr El Sheikh formation. The well tested 16.3 mmscfpd of gas
with condensate. The preliminary estimate of the recoverable reserves is 27-57 bcf of gas with associated condensate.
Both the El Panseiya-1 and South Faraskour-1 discoveries are expected to be tied in to the Company’s nearby El Wastani gas processing plant by the end of 2010.
Mr Ahmed Al Arbeed, Dana Gas CEO, said “Our team in Egypt continues to deliver tremendous results. We are delighted that these two exploration wells have been successful. They build upon Dana Gas Egypt’s outstanding 2009 achievement of eight discoveries from twelve exploration wells, which resulted in a 40% increase in proved plus probable (2P) reserves to 132 million barrels of oil equivalent at the end of the 2009.”
Dana Gas is also pleased to announce the first production from its West Qantara Concession in the Nile Delta from the Sama Field which was put on stream in February five weeks ahead of schedule, just eight months after discovery.
Dr Hany El Sharkawi, Dana Gas Egypt President commented, “These two wells are an excellent start to 2010. We still have a sizeable portfolio of drillable prospects and our exploration activity will continue throughout the year, as will our development activities.”
Feb 1 2010
- Production increases 20%. Sales revenues up 12% to AED 1.28 billion
- 8 New Discoveries. Reserves increase by 40%.
- Production Replacement Ratio of 400%.
- Net Profit after Tax of AED 88 million. “Comprehensive Income” of AED 458 million
Results for the year ended 31 December 2009
Dana Gas PJSC, the Middle East’s largest regional private sector natural gas company, has announced its financial results for the year ended 31st December 2009.
Revenue from the sale of hydrocarbons increased to AED 1.28 billion, with gross profit reaching AED 436 million. These figures represent increases of 12% and 69% respectively compared to 2008. They reflect the Company’s ongoing and growing operations in Egypt, plus a full year of condensate production sales from the Khor Mor field in the Kurdistan Region of Iraq.
Whilst a sale of 10% of the company’s interest in Kurdistan, together with a sale of the Company’s 50% interest in the Komombo Concession in Egypt generated significant profits, the full year net profit after tax of AED 88 million was lower than the AED 120 million generated in 2008. The reduction is largely due to the write off of exploration costs (in line with the Company’s “successful efforts” accounting policy), together with specific impairments (e.g. Tunisia and Nigerian asset value revisions, plus a reduction in inventory and land values). However, Earnings before interest, tax, depreciation, amortization and exploration (EBITDAX) increased by 150% to AED 1.44 billion compared to 2008, reflecting the gains mentioned above.
The Net Profit after tax excludes an unrealized gain of AED 370 million during 2009 on the Company’s investment in MOL (the Hungarian oil and gas company, who are one of our partners in Kurdistan), booked directly to equity in line with the Company’s published accounting policy.
The “Total Comprehensive Income” for 2009 is therefore AED 458 million, which is significantly higher than AED 120 million achieved in 2008.
The U.K. based advisory firm, Gaffney, Cline & Associates have carried out an independent evaluation of Dana Gas Egypt’s hydrocarbon reserves as at 31 December 2009. Following this review, the Company’s gross proved reserves (1P) as at 31 December 2009 are estimated to be 47 millions of barrels of oil equivalent “MMBOE (31 December 2008: 55 MMBOE). The gross proved and probable reserves (2P) as at 31 December 2009 are estimated to be 132 MMBOE (31 December 2008: 94 MMBOE). The gross proved, probable and possible reserves (3P) as at 31 December 2009 are estimated to be 228 MMBOE (31 December 2008: 158 MMBOE).
The 2P reserves results give a total reserves addition of 40%. The total production replacement ratio associated with this 2P reserves increase is close to 400%.
During 2009, Dana Gas Egypt produced gas, LPG and condensate at an average rate of just over 34,700 barrels of oil equivalent per day (boepd), an increase of 20% compared to 2008 thanks to production from three of Dana Gas’ recent gas discoveries that were brought on stream during the year. Additionally, in the Kurdistan Region of Iraq, gas and condensate was produced throughout the year with the condensate being sold at market rates.
Dana Gas Egypt drilled a total of twelve exploration wells during the year which yielded eight discoveries.
During 2009, Dana Gas executed two particularly successful transactions which demonstrated the substantial value of its portfolio. In May 2009, it sold a 5% interest in Pearl Petroleum Company Ltd (“PPCL”), which holds Dana Gas’ assets in the Kurdistan Region of Iraq, to the Austrian oil and gas company, OMV and a further 5% to the Hungarian oil and gas company MOL. This transaction not only demonstrated the substantial value of PPCL, it generated a profit on sale in excess of AED 1 billion, plus it also brought the valuable strategic advantage of bringing in two major European energy companies who between them, own one third of the proposed Nabucco pipeline.
In December 2009, Dana Gas farmed out a 50% interest in its Komombo Concession in Egypt to Sea Dragon Energy Ltd, a transaction which demonstrated the attractiveness of the emerging oil province in Southern Egypt and will enable the Company to accelerate its work programme on the development of the Al Baraka field. This transaction generated a profit on sale of approximately AED130 million.
Commenting on the performance for 2009, Dana Gas Chief Executive Officer, Mr. Ahmed Al-Arbeed, said: “Dana Gas is an operationally strong and successful company. We have a good portfolio of assets and we are pleased with the progress that we have made during 2009. Our Egypt exploration programme has been resoundingly successful, yielding eight discoveries in 2009 and a 40% increase in 2P reserves at the end of the year. In addition, our end of year actual production run rate exceeded the target run rate of 40,000 boepd”.
“In the Kurdistan Region of Iraq, Dana Gas continues to supply gas to the Erbil power station and continues progress in constructing the LPG Plant on which we expect to commence commissioning work shortly. Closer to home, we are approaching the executionphase of the Sharjah Western Offshore Project which will add to our production and revenues in 2011,” said Mr. Al-Arbeed.
James Dewar, Dana Gas Chief Financial Officer added “Dana Gas ended 2009 with a level of liquidity sufficient to manage our operational needs in 2010. We are balancing the financing requirements with our capital expenditure plans for 2010. We have successfully added to reserves this year, but we have also adjusted for exploration costs or made impairments, where necessary. Overall, we are satisfied the exploration and development programme is adding value to the group and that our balance sheet is robust”.
Jan 11 2010
Oil flows naturally to surface for the first time in the Komombo Concession.
Dana Gas, the Middle East’s first and largest regional private sector natural gas company, is pleased to announce the Al Baraka-4 well, drilled as an appraisal of the Al Baraka Field in the Komombo Concession in southern Egypt, has discovered a new pool in the Six Hills “E” reservoir. The Al Baraka-4 well is currently on-stream producing at a rate more than 5 times the sustained flow rate from any previous well in the field.
The Al Baraka-4 well was spudded on December 5th, 2009 and reached total depth of 1470 meters. It is located 470 meters to the southwest of Al Baraka-2 well. The well encountered 16 meters of net oil pay in the previously defined reservoirs in addition to 8 meters in the new Six Hills “E” layer. The new reservoir is proving to be more productive than the currently producing zones, having tested oil with natural flow to surface at a rate of 220 bopd. It is the first well on the Concession to flow oil to the surface through the natural energy of the reservoir, without requiring artificial lift. The well was also tested with artificial lifting at a maximum rate of 1300 bopd. The volume of reserves discovered is under evaluation.
Dr. Hany Elsharkawi, Dana Gas Egypt President said “Al Baraka-4 expands a new era of petroleum exploration in Southern Egypt. The fact that oil has flowed naturally to surface from a new layer with better reservoir quality demonstrates that the Komombo basin is more prolific than originally thought”.
Mr. Ahmed Al Arbeed, Dana Gas CEO, said “Our team in Egypt has worked with dedication and professionalism to develop our understanding of this emerging oil province and we are very pleased that their expertise has rewarded us with this recent discovery. Dana Gas will proceed with development of Al Baraka Oil Field and will continue with its exploration program to explore the entire Komombo Concession”.
Jan 5 2010
Dana Gas PJSC, the Middle East’s first and largest regional private sector natural gas company, has announced that it has successfully achieved its end of year production target for Egypt operations by delivering a production rate in excess of 40,000 boepd on December 31st 2009. Overall, Dana Gas Egypt has delivered an average production rate of 34,750 boepd during 2009. Compared to 2008, this represents an increase of 27% on the end of year production rate and is a 20% increase on the average daily production rate.
Speaking of the production results, Dana Gas CEO Mr. Ahmed Al Arbeed, said, “We are very pleased with the 2009 operational performance of our business in Egypt. Meeting the 40,000 boepd target is a tribute to the Dana Gas teams and their focus and ability to monetize the value from our acreage”.
The company is also pleased to announce the ninth gas discovery from the Orchid-1 well. This new discovery follows its eight gas discoveries in the country announced throughout 2009 (namely Salma-1, West Manzala-2, Azhar-1, Tulip-1, Sharabas-1, Sama-1, Faraskur-1 and Marzouk-2).
The Orchid-1 well was drilled in the West Manzala concession of the Nile Delta, 1.3 kilometres to the west of the Azhar1 well, and was spudded on 15 December 2009, reaching a total depth of 1,700m in the Pliocene Kafr El Sheikh formation.
The well encountered 8.4 meters of net pay of excellent sand reservoir of Kafr El Sheikh formation, and tested dry gas at a rate of 12.6 million standard cubic feet of gas per day. Dana Gas is currently studying the options for producing Orchid-1 discovery through either its El Wastani or South El Manzala gas plants.
The preliminary estimated recoverable reserves of the Orchid discovery range between 10 – 50 billion cubic feet (bcf) of dry gas, pending further appraisal.
Speaking of this latest discovery, Dana Gas CEO Mr. Ahmed Al Arbeed, said, “We are very pleased with the continuing success of our Egypt drilling campaign, which started in 2008. This campaign has already yielded very positive results for us and we will continue with our exploration campaign, we will develop our discoveries, all aimed at growing Dana Gas production operations in Egypt”.
Dr. Hany Elsharkawi, President of Dana Gas Egypt, said, “We have had a number of significant discoveries in Egypt in 2008 and 2009. It is clear that 2010 will also be a very busy year for us, as we develop all these discoveries and continue with our exploration drilling program in the Nile Delta and Upper Egypt. We look forward with confidence, building on the success to date”.
Dana Gas is the sixth highest natural gas producer in Egypt.