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.
Sharjah
Dec 15 2013
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.
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.
Sharjah
Oct 22 2013
This disclosure is made pursuant to Article 33 of the Abu Dhabi Stock Exchange Regulations as to Disclosure and Transparency
Dana Gas discloses that, along with Crescent Petroleum and the Pearl Petroleum Company Limited (which holds petroleum rights in the Kurdistan Region of Iraq), it has commenced arbitration proceedings at the London Court of International Arbitration (LCIA), in order to clarify 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 (the Agreement).
The objective of the arbitration, which is pursuant to the agreement, is to obtain confirmation on Pearl Petroleum Company’s ’s long-term contractual rights for the development and marketing in respect of the Khor Mor and Chemchemal fields; including the outstanding receivables owed by the Ministry of Natural Resources (MNR) in the Kurdistan Region of Iraq.
This follows concerted and sincere efforts to resolve differences of opinion with the MNR including a formal mediation procedure under the LCIA Rules, with which the MNR unfortunately declined to engage.
The Board of Directors of Dana Gas made their decision in order to protect the interests of the Company’s shareholders and investors, and very much hopes that all outstanding matters with the MNR will be resolved, amicably and in good faith, in the shortest possible time, in order to enable full and proper development of the fields, as envisaged in the Agreement, for the benefit of the people of the Kurdistan Region and all of Iraq.
Dana Gas is proud to be, together with its partners, the largest oil and gas sector investor and producer in the Kurdistan Region of Iraq. To date, they have invested over US$1 billion and produced approximately 100 million barrels of oil equivalent (boe) of gas and petroleum liquids. In the five years since October 2008, when production commenced, output has been uninterrupted, allowing affordable electricity provision and an economic and social transformation of the Kurdistan Region under the progressive policies of the KRG.
Dana Gas reaffirms its intention, together with its partners, to continue fulfilling its obligations under the terms of the Agreement with the support and cooperation of the KRG and reiterate its continued, long-term commitment to the KRG and to the people of the Kurdistan Region and all of Iraq.
8th October 2013
Sharjah
Dana Gas, the Middle East’s leading regional private sector natural gas Company, and Crescent Petroleum, the oldest private oil and gas Company in the Middle East, have announced the achievement of five years of continuous production in their major operations in the Kurdistan Region of Iraq. As joint operators of the Khor Mor Field on behalf of the Pearl Consortium, they are currently producing an average of 80,000 barrels of oil equivalent (boe) per day, with total investment of US$1.1 billion and total cumulative production of close to 100 million boe. This is the largest investment and production in the oil & gas sector of the Kurdistan Region of Iraq.
The daily production includes 335 million cubic feet of gas per day and 14,100 barrels of condensate, with an LPG capacity of over 1,000 tonnes per day. A maximum production rate of 87,700 boe per day was also achieved. In total, over 402 billion cubic feet of gas and 20 million barrels equivalent of liquids have been produced by the companies since the start of production in October 2008, with the gas supply to local power stations enabling 1,750 MW of new electricity supply locally.
This has ensured almost continuous power supply for 4 million people in the Kurdistan Region, in contrast to the electricity crisis in other parts of Iraq, and provided US$ 11 billion of savings in fuel costs for the government, with annual savings in excess of $3.3 billion going forward and major environmental benefits in cutting greenhouse gas emissions while transforming and energizing the economic and social development of the entire region at the same time. In addition, the environmental benefits included a total of US$169 million in carbon savings and lower environmental pollution thanks to the utilization of natural gas instead of liquid fuels for power generation.
“We are proud to be the largest investors in the Kurdistan Region’s oil and gas sector, and the highest petroleum producers since our first production five years ago, which enables electricity supply for millions of citizens, transforming the development of the region and providing billions of dollars of ongoing fuel savings for the Kurdistan Regional Government,” said Mr. Majid Jafar, CEO of Crescent Petroleum and Managing Director of the Board of Dana Gas.
Marking the fifth anniversary of continuous production by the partners,
Mr. Patrick Allman-Ward, CEO of Dana Gas, said: “This important milestone has been achieved with the cooperation and support of the KRG, as well as our partners, contractors and local staff. In addition we are working with the Ministry to resolve all outstanding matters, including receivables, amicably and in good faith. We are also in discussion with them on further expansion of our investment and production, with the correct assurances and under the contractual terms.”
Project Technical Achievements
The project partners had by the end of September 2013 invested a total of US$1,069 million under contracts signed with the Kurdistan Regional Government (KRG) for the Khor Mor and Chemchemal blocks in April 2007. Major achievements of the project so far include: installing a 180km gas pipeline across challenging mountainous terrain that required the clearing of minefields; first gas production after only 16 months; drilling successfully to tertiary reservoir formations at depths of 2,300 metres, and importing and installing over 64,000 tonnes of equipment in over 3,500 truck-loads, with pipe material supplied from China and Thailand, and the state-of-the-art gas processing plant imported from the USA.
During the project’s construction phase, work opportunities were provided for over 2,000 Iraqi workers from all ethnic groups and sects, supported by expatriate workers from over 20 nationalities in the region and worldwide. The companies have successfully implemented a nationalisation programme, and already achieved the target of 80% local staff ratio in their operations while currently implementing a major training programme for local staff.
Corporate Social Responsibility (CSR) Programme
Crescent Petroleum and Dana Gas have also implemented a corporate social responsibility programme to support the local communities, including providing school supplies, drinking water treatment, generators and fuel enabling 24 hour electricity for the local villages, mobile medical units, and youth sports facilities. These initiatives are assisting the local communities in improving their standard of living, health, well-being, security and stability and the development of human capital in the Kurdistan Region.
About Dana Gas
Established in 2005, Dana Gas is the Middle East’s first and largest regional private sector natural gas company with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with an average output of 61,700 boped in 2Q 2013. Dana Gas aims to play a major role in the rapidly growing natural gas business in the Middle East and North Africa. www.danagas.com
About Crescent Petroleum
Crescent Petroleum is the oldest private exploration and production company in the Middle East, with over 40 years of experience as an international operator in numerous countries including Egypt, Pakistan, Yemen, Canada, Yugoslavia, Tunisia, Argentina, in addition to its continuing operations in the United Arab Emirates and Iraq. Headquartered in Sharjah in the UAE, Crescent Petroleum has international offices in the UK, Iran, and three locations across Iraq, as well as affiliated offices in Egypt, Saudi Arabia, and Bahrain. Crescent Petroleum is also the largest shareholder in Dana Gas, the Middle East‘s first and largest regional private-sector natural gas company. www.crescent.ae
For more information, please contact:
Crescent Petroleum: SAHARA Communications
Farah Ahmed
Farah@saharagcc.com
+971-4-329 8996 / +971-50-3323158
Dana Gas: Brunswick Group
Rupert Young / Jade Mamarbachi
danagas@brunswickgroup.com
+971 4 446 6270
27 August 2013
Sharjah
Dana Gas, the Middle East’s leading regional private sector natural gas Company, announces that it has achieved gas production level in Egypt of 200 million standard cubic feet per day (equivalent of 41,500 boepd, including over 8,000 barrels per day of associated liquids), the highest level for the company in the country in 2 years. This represents a growth of 29% over the 2012 average. The Company’s core operations in the Nile Delta and its Egyptian Bahrain Gas Derivatives Company (EBGDCo) Natural Gas Liquids extraction plant in Ras Shukheir remained stable and have not been impacted by the current events in Egypt.
Dana Gas is in discussions with the Egyptian authorities on its capital expenditure plans aimed at further increasing production and at resolving the issue of outstanding payments. This is in line with the Egyptian Government’s efforts to increase local hydrocarbon production to benefit the local population. The Company is conducting positive discussions with the relevant authorities and looks forward to an early resolution.
Several projects are ready to be executed in order to further raise the production to a level around 50,000 boepd in the near future. These projects include multi-wells appraisal drilling programmes, adding gas compression facilities for the El Basant field and a new pipeline connecting Salma and Tulip discoveries to the El Wastani Plant. Investments in these important projects can be expedited following the successful resolution of the issue pertaining to long-pending receivables, which are now in the order of $ 270 million.
Patrick Allman-Ward, General Manager Dana Gas Egypt and incoming Group CEO said: “Egypt remains a core part of our long-term strategy and we remain committed to enhancing production and developing our assets in Egypt. We have successfully drilled and tested three development wells over the last six months and have achieved the production rate of 41,500 boepd, our highest level since August 2011.
“We are working towards further increasing the production to 50,000 boepd in the foreseeable future. This requires further investments in the fields and early resolution of the long-pending receivables will greatly assist in accelerating our capital investment decision. Recent improvements in foreign currency reserves of Egypt and fiscal support being provided by the GCC are positive developments in this regard”.
Dana Gas is among the most active oil and gas investing companies and is the 6th largest gas producer in Egypt. 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 with the Begonia-1 well in the Nile Delta. The Company has invested around US$ 2 billion in Egypt of which a significant portion has been assigned to local contractors. The cumulative gross production of Dana Gas in Egypt is 83 million barrels of oil equivalent and this has generated direct incremental value for the Egyptian economy of US$ 4 billion.
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). As a responsible corporate citizen, Dana Gas has undertaken several CSR initiatives in Egypt including renovating and equipping local schools serving several hundred children. The Company has also supported the ‘Skoool’ ESI online portal initiative, Egypt’s top free education portal reached a huge success in the second phase with more than 2.7 million subscribers. In addition, the company contributed to the development of training activities and public awareness on CSR in close cooperation with the National Egyptian Center for Corporate Social Responsibility.
DANA GAS is Pleased to Invite you to Participate in a 1H 2013/ 2Q 2013 Financial Results Conference Call on Wednesday 14th August 2013
06:30 (New York), 11:30 (London), 14:30 (UAE)
The call will start at 14:30 UAE local time and will be hosted by:
– Mr. Rashid Saif Al-Jarwan – Executive Director & Acting CEO
– Dr. Patrick Allman-Ward – CEO Designate
Dial-in Details
US: + 1 877 887 41 63 (Toll free)
UK: 0 8082 381 774 (Toll free)
UK: +44 (0) 203 043 24 40 (Toll)
UAE: 800 035 702 760 (Toll free)
Participants must quote: 561576#
In addition, to see the presentation on-line please click on the following link:
https://www.anywhereconference.com/
and follow these steps :
1 -Enter Your Web login As: 135282978
2 -Enter Your Participant PIN Code: 561576
3 –Enter your name and click on Go
(Only available on 13th August 2013)
The presentation and the call script will also be available on Dana Gas website: www.danagas.com
Replay Details from 17:00 UAE Local Time, 14th August 2013
US: +1 877 64 230 18
UK: +44(0)20 33 67 94 60
Access Code: 282978#
Available until midnight on 10th September 2013
Please e-mail: Dalia Al Sudani dalsudani@danagas.com with any questions
4 August 2013
Sharjah,
Dana Gas PJSC the Middle East’s largest regional private sector natural gas company, announces its financial results for the six months and quarter and ended 30 June 2013 with a net profit of AED 341 million and AED 100 million respectively.
Average overall production volumes were up 5% to 61,700 barrels of oil equivalent per day (boepd) in Q2 and up 1% to 61,500 boepd in H1 2013. In Egypt, Dana Gas recently achieved a record production of 39,000 boepd, a 13% increase on the 2012 average production. Furthermore, LPG sales have recommenced in Kurdistan on the 17 July, energy prices having rebounded in July and monetary support is being provided for in Egypt.
H1 2013 revenue and gross profit was AED 1,085 million and AED 506 million. Earnings before interest, tax, depreciation, amortisation and exploration (EBITDAX) was AED 616 million compared to AED 822 million in the same period last year.
In Q2 2013 revenues and gross profit was AED 528 million and AED 232 million.
Commenting on the results, Dr. Adel AlSabeeh, Chairman of Dana Gas, said: “One of our principal strategies in the first half of 2013 was to concentrate on extracting higher production volumes with limited capital investment. I am pleased to announce that our group production numbers have increased 5% in the quarter and now average 61,700 barrels of oil equivalent per day (boepd). We also achieved a record average production number in Egypt of 39,000 boepd in July. These are excellent production figures and demonstrate the high quality of assets we have in our portfolio.
“As LPG sales resume, energy prices rebound, production volumes continue to remain high, and the Egyptian economic situation stabilizes as government authorities continue to work with the international financial community to address investors’ concerns, collectively these will support our main growth strategies going forward.”
Rashid Al Jarwan Acting Chief Executive Officer of Dana Gas, added: “Good progress is being made on our drilling programme in Egypt. We discovered hydrocarbons in a new well, Begonia 1, and successfully brought production online from two previously discovered wells, Allium and West Sama. In Kurdistan, we have completed the reconstruction of the loading bay which will enable resumption of LPG and enhance revenue. Furthermore, the appointment of Dr Patrick Allman-Ward as new CEO will bring experience, knowledge and hands-on experience in Egypt, which will benefit Dana Gas immensely as it focuses on its next stage of growth.”
Production and Development
Dana Gas Egypt saw an 11% year on year increase in production volumes, averaging 34,300 boepd in Q2 2013 and also achieved a record production in July of 39,000 boepd, up 13% from 2012.
The Company was successful in bringing online production from tie-in of South Abu El Naga dry gas well, new discoveries of Allium in West El Manzala concession and West Sama in West El Qantara concession. Production is expected to increase still further in H2 2013 as compression facilities and new production wells are brought on-stream.
In the Kurdistan Region of Iraq, the Company’s 40% share of production in the Kor Mor Field for the second quarter averaged 27,000 boepd (Q2 2012: 27,900 boepd). The decline in production was mainly due to the suspension of LPG production following an accident last year by a third party tanker. The reconstruction and upgrading of the loading facilities at a cost of $15 million was carried out and was completed in July 2013. The Kor Mor LPG Plant now has the capacity to produce up to 900 tonnes/day of LPG, the equivalent of approximately 10,000 boepd and will help enhance Companies’ revenues and profitability.
Together, the Group’s net production averaged 61,700 barrels of oil equivalent per day (boepd) from its interests in Egypt and the KRI during the three months ended 30 June 2013.
Exploration & Appraisal
During Q2 2013, the Company added the Begonia-1 gas discovery to its Egypt portfolio. Located in the West El Manzala concession, the well encountered 15 m of net pay in a good quality sandstone reservoir of the Lower Abu Madi Formation. The evaluated resources for the Abu Madi Lower pay zone are between 7 and 15 billion cubic feet (bcf) and around 100,000 barrels of condensate.
Liquidity and Financial Resources
Cash balance, as of 30 June 2013, stood at AED 792 million (31 December 2012: AED 601 million).
Overall net trade receivables, as of 30 June 2013, stands at AED 2.47 billion (US$ 674 million).
In Egypt, Dana Gas collected AED 203 million in H1 2013 against its receivables (H1 2012: AED 431 million) and as of 30 June 2013, the balance stood at AED 960 million (31 December 2012: AED 866 million).
Dana Gas continues to engage with relevant government authorities regarding its overdue receivables and its future capital expenditure plans. It welcomes and actively supports the Government’s desire to increase local hydrocarbon production in order to meet growing domestic demand. Discussions of fiscal support by the international community will also play a significant role in addressing investment decisions by key international investors.
In Kurdistan, Dana Gas collected AED 223 million in H1 2013 against its share of receivables in Kurdistan (H1 2012: AED 218 million) and as of 30 June 2013, the balance of its share stood at AED 1,473 million (December 2012: AED 1,298 million).
22 July 2013,
Sharjah
Dana Gas PJSC, the Middle East’s leading private-sector natural gas company, and Crescent Petroleum, the Middle East’s oldest private oil and gas company, in their capacity as joint operators, have announced the completion of the rebuild of the LPG loading and dispatch facilities at the Kor Mor LPG Plant in Kurdistan Region of Iraq.
The reconstruction and upgrading of the loading facilities at a cost of $15 million was carried out following an accident last year by a third party tanker operator, and incorporates the latest LPG loading safeguarding and control technology which provides for significant enhancement in the safety and control over the LPG loading process. The Kor Mor LPG Plant now has the capacity to produce up to 900 tonnes/day of LPG which is once again available to the Kurdistan Region and surrounding markets, and should give a further boost to the companies’ revenues.
Total Production and Investment Levels
Total cumulative petroleum production by the companies in their major gas operations in the Kurdistan Region has now reached 88 million barrels of oil equivalent from continuous production since October 2008 with a total investment on behalf of the partners in excess of US$1 billion, following agreements signed with the Kurdistan Regional Government for the Kor Mor and Chemchemal blocks in April 2007. This makes it the largest investment and highest cumulative production in the Kurdistan Region’s oil and gas sector.
Daily production has reached a peak rate of 88,000 barrels oil equivalent per day (boepd), averaging 80,000 boepd, which includes 340 million cubic feet of gas per day and 15,000 barrels per day of condensate liquids, and there are plans for further expansion in investment and production levels, under discussion with the Ministry of Natural Resources.
In total, more than 415 billion cubic feet of gas and 18 million barrels of condensate and liquids have been produced by the companies since the start of production in 2008, with the gas supply to local power stations enabling 2,000 MW of new electricity generation for the Kurdistan Region. This has ensured almost continuous power supply for 4 million people in the Kurdistan Region, in contrast to the electricity crisis in other parts of Iraq, and provided close to US$10 billion of savings in fuel costs for the government, with annual savings of $3.3bn going forward and major environmental benefits in cutting greenhouse gas emissions while transforming and energizing the economic and social development of the entire region at the same time.
“We are proud to be the largest investors and producers in the Kurdistan Region’s oil and gas sector, and this represents the confidence of the GCC investors in the policies of the Kurdistan Regional Government,” said Mr. Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas. “The gas we produce has enabled billions of dollars of fuel cost savings for the government, and major economic and social benefits for the region as a whole. We look forward to further expansion of our investment and production in the region.”
Mr. Rashid Al-Jarwan, Executive Director and Acting CEO of Dana Gas, added: “The restoration of the full LPG capacity is another important milestone in our operations, and we thank the KRG Ministry of Natural Resources for their cooperation, as well as our contractors, partners and staff. We are working with the KRG and the Ministry to resolve the outstanding issues including the receivables, as soon as possible.”
Technical Achievements
The many notable technical achievements of the project include: achieving first gas in a record time of only 15 months, the installation of a 180km gas pipeline across challenging mountainous terrain that required the clearing of minefields; installation of new gas processing plant drilling successfully to tertiary reservoir formations at depths of 2,300 meters, importing and installing over 64,000 tonnes of equipment in over 3,500 truck-loads, with pipe material supplied from China and Thailand, and the state-of-the-art gas processing plant imported from the USA.
During the project’s construction phase, work opportunities were provided for over 2,000 Iraqi workers from all ethnic groups and sects, supported by expatriate workers from over 20 nationalities in the region and worldwide. Currently employing 460 full-time employees in the Kurdistan Region, the companies have successfully implemented a nationalization programme, already achieving over 80% local staff ratio in their operations while implementing a major training programme.
Corporate Social Responsibility (CSR) Programme
Crescent Petroleum and Dana Gas have also implemented a corporate social responsibility programme to support the local communities, including most recently the support pledged to 1,000 orphans in the Kurdistan Region in the Anfal areas which were most badly affected by conflict during the past decades in partnership with the Barzani Foundation. In addition the companies have provided school supplies, drinking water treatment, generators and fuel enabling 24 hour electricity for the local villages, mobile medical units, and youth sports facilities. These initiatives are assisting the local communities in improving their standard of living, health, well-being, security and stability and the development of human capital in the Kurdistan Region.
About Dana Gas
Dana Gas, is the first regional private-sector natural gas company in the Middle East, established with over 300 reputable founder shareholders from across the Gulf Cooperation Council (GCC) region, and some 300,000 investors from over 100 nationalities worldwide. Headquartered in Sharjah in the UAE and listed on the Abu Dhabi Stock Market (ADSM), Dana Gas has offices in Egypt and Iraq, and currently has assets and projects in gas exploration and production, processing, transportation and marketing in the UAE, Egypt and Iraq, with plans for expansion in the rapidly-growing natural gas business throughout the Middle East North Africa and South Asia (MENASA) Region across the entire gas value chain. www.danagas.com
About Crescent Petroleum
Crescent Petroleum is the oldest private exploration and production company in the Middle East, with over 40 years of experience as an international operator in numerous countries including Egypt, Pakistan, Yemen, Canada, Yugoslavia, Tunisia, Argentina, in addition to its continuing operations in the United Arab Emirates and Iraq. Headquartered in Sharjah in the UAE, Crescent Petroleum has international offices in the UK, Iran, and three locations across Iraq, as well as affiliated offices in Egypt, Saudi Arabia, and Bahrain. Crescent Petroleum is also the largest shareholder in Dana Gas, the Middle East‘s first and largest regional private-sector natural gas company. www.crescent.ae
16 July 2013
Sharjah,
Dana Gas PJSC, the Middle East’s leading regional private sector natural gas company, announces that it has achieved record production in 2013 in Egypt of 39,000 barrels of oil equivalent per day, including 190 mmscfd of gas and 8,500 barrels of liquids per day.
The Company has made substantial capital expenditure investments to its Nile Delta operations over the last 18 months. These include new compression facilities, new fields being brought on stream and work to increase its numerous gas plants throughput. As a result of investments made since February 2012 production levels have reached a peak of 39,000 boepd, an increase of 13% over the year 2012. The average output year-to-date has been 34,000 boepd.
The Company’s core operations in the Nile Delta and its Egyptian Bahrain Gas Derivatives Company (EBGDCo) Natural Gas Liquids extraction plant in Ras Shukheir have not been impacted by the current events in Egypt. However, the Company continues to closely monitor developments.
Dana Gas announced the Begonia-1 discovery on 30 June and has submitted a proposed Development Plan to the Egyptian authorities as part of a Development Lease application. The submission remains on track and following approvals, gas from the Begonia-1 will be tied into the existing gas gathering and production system.
Dana Gas continues to engage with relevant government authorities regarding its overdue receivables and its future capital expenditure plans. It welcomes and actively supports the Government’s desire to increase local hydrocarbon production in order to meet growing domestic demand. Discussions of fiscal support by the international community will also play a significant role in addressing investment decisions by key international investors. During Q1 2013, Dana Gas collected US$41 million with a 100% revenue collection.
Dr Patrick Allman-Ward, General Manager of Dana Gas Egypt and designated CEO, said: “Our Egyptian operations continue to perform well despite the difficult fiscal environment oil and gas companies have faced in the country over the last two years. We have made four successful discoveries over the last year and increased our local production significantly.
“The recent important announcements of significant financial support for Egypt’s from a number of GCC states coupled with the government’s desire to increase local gas production dramatically, is favourable to companies such as ours. We are also talking with the government to resolve the outstanding receivables situation as quickly as possible. In addition, we have planned a multi-well appraisal drilling programme for the second half of 2013 and we hope to be able to implement this successfully.”
Dana Gas has a successful track record of gas discoveries in Egypt over the last six year and in June 2013, announced its 25th discovery with the Begonia-1well in the Nile Delta. Total investments by Dana Gas in Egypt have exceeded US$1.8 billion.
Dana Gas is among the most active oil and gas investing companies and has grown to become the 6th largest gas producer in Egypt. The company remains committed to making investments that will bring benefits to both the company and the country.
9 July 2013
Sharjah,
Dana Gas PJSC, the Middle East’s leading publicly-listed natural gas company, has announced the appointment of Patrick Allman-Ward as the new Group CEO for the company with effect from 01 September 2013.
The company, which is listed on the Abu Dhabi Exchange (ADX) and recently announced the successful re-financing of its US$1 billion sukuk, conducted an extensive executive search process after the retirement last year of its CEO, Mr. Ahmed Al-Arbeed, who remains a Member of the Board.
The incoming CEO Dr Patrick Allman-Ward is an accomplished international energy executive with over 30 years of experience in the oil and gas industry, in many senior positions including in the Middle East and the Gulf Region in particular. He also brings with him an in-depth knowledge of Dana Gas as the current General Manager of Dana Gas Egypt, having joined the company in 2012 after a successful career with Shell International.
Through his responsibilities in managing all aspects of Dana Gas’ operations in Egypt, including exploration, production, business development and government relations, Dr Allman-Ward successfully achieved new exploration discoveries, increasing production and developing new business opportunities.
He will continue as General Manager for Dana Gas Egypt until a suitable replacement has been found.
Patrick Allman-Ward started his career at Shell in 1982. He gained experience in a wide range of departments including exploration, planning, business development, commercial negotiations and HSSE. At Shell he held senior management roles as Vice-President Exploration for Asia-Pacific, CEO and Board Member of the South Rub Al Khali Company – of which Saudi Aramco was a major shareholder, Vice-President of New Business Development in Saudi Arabia and New Ventures Execution Manager for Europe.
Dr. Allman-Ward, who is English, studied geology at Durham University and earned his PhD from the Royal School of Mines, Imperial College, University of London. He is a member of the American Association of Petroleum Geology (AAPG), the European Association of Geoscientists and Engineers (EAGE), the Society of Petroleum Engineers (SPE) and the South-East Asia Petroleum Exploration Society (SEAPEX).
HE Dr Adel Khalid Al-Sabeeh, Chairman of the Board of Dana Gas, said: “On behalf of the Board of Directors, we are pleased to announce Patrick Allman-Ward as the new CEO of Dana Gas. After a detailed search and interview process of many candidates, we are confident we have found the right person. Patrick Allman-Ward brings deep industry experience, invaluable knowledge of our business and a proven record running the Dana Gas team in Egypt and developing strong relationships with government authorities. Patrick will be focused on driving our next phase of growth in Egypt, the UAE and the Kurdistan Region of Iraq as we prepare to expand into new areas throughout the Middle East-North Africa region.”
Continuing, Dr Al-Sabeeh said: “The Board would like to also especially thank Mr. Rashid Saif AlJarwan for fulfilling the vital role of Acting CEO over the past year. His tireless service for the company and its shareholders during an important year is very much appreciated, and he will continue to play an important role during the transition period as Executive Director and a Member of the Board.”
Commenting on his appointment, Dr Patrick Allman-Ward said: “Dana Gas is an extremely well-respected energy company with a successful track record and strong growth potential throughout the region. I am honoured by the appointment and very excited at the prospect of working with the Board and the management team to continue developing our assets, lead the expansion into new areas, reduce our receivables position and above all achieve maximum value for our investors.”
30 June 2013
Sharjah
Dana Gas PJSC, the Middle East’s first and largest regional private sector natural gas company, is pleased to announce a new gas discovery on the West El Manzala concession in the Nile Delta, Egypt.
The Begonia-1 discovery well encountered 15 m of net pay in a good quality sandstone reservoir of the Lower Abu Madi Formation. On test the formation produced 9.4 Million standard cubic feet of gas with 133 barrel condensate. The evaluated resources for the Abu Madi Lower pay zone are between 7 and 15 billion cubic feet (bcf) and around 100,000 barrels of condensate.
A notification of commercial discovery has been made to the government and the Company is preparing to submit a development plan for this discovery as part of a Development Lease application. It is anticipated Begonia-1 will be tied into the existing South Abu El Naga Field flow line which will take the gas to the El Wastani gas processing plant. Once fully developed the field will add around 1,600 boepd of production. The Company’s average output for the first five months was 33,600 boepd in Egypt.
Mr Rashid Al-Jarwan, acting CEO, Dana Gas, said: “The Company is pleased to announce another successful well discovery which will add to our production, cash flow and reserves in Egypt. We look forward to continue our appraisal drilling activities in the months to come.”
Dr. Patrick Allman-Ward, General Manager, Dana Gas Egypt, commented: “We are pleased to have made another excellent gas discovery in our onshore Nile Delta asset in 2013, following the outstanding results of 2012. The Begonia-1 well continues a series of rich gas discoveries made last year, with the potential for fast hook up and production that helps to contribute to meeting Egypt’s gas needs. We are planning to drill two additional appraisal wells in these discoveries before the end of 2013.”
Dana Gas is continuing constructive discussions with the authorities on its remaining outstanding receivables. During Q1 2013, Dana Gas collected US$41 million with a 100% revenue collection.
Dana Gas has a successful track record of gas discoveries in Egypt, with the Begonia-1 being the 25th since 2007. Total investments in Egypt have exceeded $US 1.8 billion and the company is now the sixth largest gas producer in Egypt, producing 170 mmscfd, 4,000 bpd of associated condensate and 250 tons of LPG a day. The Company is working to further increase gas and condensate production for electric power generation and fuel supply in Egypt, and has a track record of expediting the tie-in of new discoveries.
In the Kurdistan Region of Iraq (KRI), the Company’s 40% share of production in the Khor Mor Field for the first 5 months of 2013 was 27,700 boepd. Production is expected to increase once the LPG production is resumed after repairs to the loading bay are complete in the next few weeks.
Sharjah
May 14 2013
31 March 2013 (AED M)
Gross revenue – 557
Net profit – 241
Production (boepd) – 61,400
31 March 2012 (AED M)
Gross revenue – 700
Net profit – 206
Production (boepd) – 63,000
Increase/(Decrease) %
Gross revenue – (20%)
Net profit – 17%
Production (boepd) – (3%)
Dana Gas PJSC, the Middle East’s largest regional private sector natural gas company, announces its financial results for the first quarter ended 31 March 2013 with a net profit after tax of AED 241 million (US$ 66 million), an increase of 17% as compared to AED 206 million (US$56 million) in Q1 2012. Revenue from the sale of hydrocarbons during Q1 2013 was AED 557 million (US$ 152 million).
Revenues and gross profit declined during Q1 2013, owing to a conservative cash policy towards capital expenditure and a temporary suspension of Liquefied Petroleum Gas (“LPG”) production in Kurdistan Region of Iraq (“KRI”).
Revenues and gross profits are expected to increase as new discoveries in Egypt are brought to production and upon resumption of LPG production in Kurdistan in June 2013 following completion of repairs to the LPG loading bay.
Commenting on the results, Dr. Adel Al-Sabeeh, Chairman of Dana Gas, said: “Our disciplined approach and long-term business strategy has allowed Dana Gas to achieve an encouraging first quarter while completing the refinancing of the sukuk and posting an increase in net profit. We are committed to expanding regionally and were successful in our bid to be awarded an oil and gas prospecting project in northern offshore Egypt as well as pre-qualifying in Lebanon’s first offshore licensing round.”
Rashid Al-Jarwan, Executive Director and Acting Chief Executive Officer of Dana Gas, added: “We have had an active start to the year. Egypt and Kurdistan have increased their quarterly production as we brought on stream discoveries, added compression facilities to enhance current production. These developments, combined with the completion of the sukuk refinancing has meant we can approach the rest of 2013 with renewed confidence and ensure our future growth plans deliver value to our stakeholders.”
Production and Development
The Group’s net production averaged 61,400 barrels of oil equivalent per day (boepd) from its interests in Egypt and the KRI during the three months ended 31 March 2013.
Egypt
Dana Gas Egypt produced gas, LPG, condensate and crude oil at an average rate of 33,200 boepd in the first quarter of 2013. This is up on Q4 2012 from an average rate of 32,700 boepd aided by West Sama-1 and Allium-1 fields in Egypt commencing commercial production in early March. When both fields achieve full capacity output, they are expected to add 3,450 boepd (20 MMcf/d).
The Egyptian Bahrain Gas Derivatives Company “EBGDCo” -in which Dana Gas interest is 26.4%- Natural Gas Liquids (NGL) extraction plant at Ras Shukheir, Egypt processed a combined 8163 metric tonnes of Propane (7765) and Butane (398) in Q1 2013.. The average gas flow-rate for the quarter was 90 million standard cubic feet per day (mmscfd) with recovery rates of 98.9 per cent and 99.9 per cent respectively.
Egypt’s West El Manzala Concession has seen a number of operational activities completed during Q1 2013. The South Abu El Naga wells, discovered in May 2011 with a reserve minimum estimate of 50 billion standard cubic feet (Bcf) of gas, have completed further well tie-ins. The El Basant gas fields, first discovered in 2009 with an estimated gas reserve of 123 billion Bcf, has finalized the overhaul of its gas compressor units and the Balsam-1 field, the third discovery in 2012, is now ready to start commercial production, with its gas being routed through El Westani gas plant. Together, these operational activities will result in a significant increase in gas production which will directly increase both Dana Gas Egypt and the Group’s overall net production figures in 2013.
Kurdistan Region of Iraq
In the Kurdistan Region of Iraq, the Company’s 40% share of production in the Kor Mor Field for Q1 2013 was 27,700 boepd, as compared to 28,500 boepd during the same period last year. However, Production was up 3% on quarter by quarter basis. Production is expected to increase once LPG production is resumed after repairs to the loading bay are complete by the end of Q2 2013.
Daily production reached a peak rate of 88,000 barrels oil equivalent per day (boepd), averaging 80,000 boepd, which includes 340 million cubic feet of gas per day and 15,000 barrels per day of condensate liquids. There are plans for further expansion in investment and production levels, under discussion with the Ministry of Natural Resources.
Exploration & Appraisal
Dana Gas Egypt was a successful bidder in the Egyptian Natural Gas Holding Company 2012 International Bid Round that took place on 18th April 2013. It was awarded 100% working interest in the North El Arish Offshore (Block 6) concession area. Upon completion of the necessary procedures, the concession will be handed over to Dana Gas in Q4 2013, whereby it will start the appraisal process.
The Company has also been pre-qualified as a non-operator in Lebanon’s 1st Offshore Licensing Round where 10 deep water exploration blocks are available.
Liquidity and Financial Resources
Cash
Group cash balances as of 31 March 2013 stood at AED 1,254 million (US$ 342 million) (31 December 2012: AED 601 million). The significant rise in cash balances follows the one-off proceeds from the partial monetisation of Dana Gas’ MOL stake. In February 2013, the Company sold 1.675 million shares, raising AED 495 million (US$ 135 million).
Receivables
The Company’s overall net trade receivables number, as of 31 March 2013, stands at AED 2.3 billion (US$ 625 million).
During the first three months of 2013, the Group collected AED 152 million (US$ 41 million) of receivables in Egypt. Revenue collection is 100% and the trade receivable balance stood at AED 866 million (US$ 236 million) as of 31 March 2013 (31 December 2012: AED 866 million).
In Kurdistan, the Group collected AED 119 million (US$ 32 million) of its 40% share of receivable in KRI. Revenue collection is 56% and the Group’s share of the trade receivable balance stood at AED 1,389 million (US$ 375 million) as of 31 March 2013 (31 December 2012: AED 1,298 million).
Sukuk Update
on 8th May 2013 it has completed the refinancing of the US$ 1 billion Trust Certificates (Sukuk-al-Mudarabah) issued by Dana Gas Sukuk Limited. This followed
the overwhelming approvals to the refinancing plan received from both Sukuk Certificate holders and Shareholders on 23 April 2013. The New Sukuk of US$ 850 million (US$425 million of Convertible Sukuk and US$425 million of Ordinary Sukuk) have been listed on the Global Exchange Market of the Irish Stock Exchange.
Sharjah
May 9 2013
Dana Gas PJSC, the Middle East’s leading private sector regional natural gas company, confirms that on 8th May 2013 it has completed the refinancing of the US$ 1 billion Trust Certificates (Sukuk-al-Mudarabah) issued by Dana Gas Sukuk Limited. This follows the overwhelming approvals to the refinancing plan received from both Sukuk Certificate holders and Shareholders on 23 April 2013. The New Sukuk of US$ 850 million (US$425 million of Convertible Sukuk and US$425 million of Ordinary Sukuk) have been listed on the Global Exchange Market of the Irish Stock Exchange.
Dr. Adel Al-Sabeeh, Chairman of the Board of Dana Gas, said: “The completion of the financial restructuring is an important step and this will underpin our strategic growth plans in Kurdistan, Egypt and the Eastern Mediterranean. We would like to thank shareholders and sukukholders for their support and confidence in our business.”
Rashid Al-Jarwan, Executive Director and Acting Chief Executive Officer of Dana Gas said: “The restructuring process has now been formally completed and this puts Dana Gas in a stronger financial position. The Company can now look forward to pursuing its long term regional growth strategy with the renewed confidence of its key stakeholders.”
As previously announced, key transaction highlights are as follows:
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, a US$425 million 7.0% Convertible Sukuk with a conversion price of AED 0.75 and a US$425 million 9.0% Ordinary Sukuk (together the “New Sukuks”) each with a 5-year maturity to 31 October 2017, the combination of which will ensure that the potential dilution for shareholders remains substantially similar to current levels.
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
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.
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.
Sharjah
May 5 2013
Dana Gas PJSC, the Middle East’s first and largest regional private sector natural gas company, today announces the strengthening of its management team with the appointment of Mr. Robinder Singh as Investor Relations Director.
Mr. Singh will be responsible for overseeing the Company’s strategic communications with the global investment community and other stakeholders, as part of the company’s commitment to being a leading company in transparency and shareholder communications. As Investor Relations Director he will have a special focus on developing relationships with shareholders and sukukholders and building the Company’s profile in the regional and international investment community to ensure the Company enhances transparency and investor communications to deliver shareholder value.
Mr. Singh has over 20 years of international experience in investor relations, marketing and corporate communications, product management and business development with Reliance Industries, HSBC, Bank of America and Lowe Lintas.
During his career, Mr. Singh gained significant exposure to Asian, Middle East, European and US markets working on cross border transactions as well as managing teams in multiple jurisdictions. Whilst at Reliance Group, one of India’s largest listed companies, he played a vital role communicating major financial transactions; developing investor support for large scale capital raising programmes and a range of mergers and acquisitions.
Commenting on the appointment, Mr. Rashid Al Jarwan, Executive Director and Acting CEO of Dana Gas said: “Robinder Singh is an important addition to our management team and with the financial restructuring behind us he will ensure we strengthen our relationships with the investment community, the energy sector as well as the wider market. He has strong investor relations experience, having spent close to ten years leading Reliance Industries’ IR function, and is widely respected by both the international buy-side and sell-side community. His appointment demonstrates our commitment to developing our strategic communications capability and engaging with all our stakeholders.”
Dana Gas is listed on the Abu Dhabi Securities Exchange (ADX) and is one of the most traded stocks of all the ADX listed companies with an average of 15.5 million shares traded per day in the first quarter of 2013. Dana Gas, which was established in 2005, has 245,000 shareholders, of which 236,000 (96%) are GCC citizens.
At the EGM of shareholders on 23 April, shareholders and sukukholders overwhelmingly voted in favour of the financial restructuring giving the company a financial commitment for the next five years; a sign of the confidence the international investor community sees in the future of Dana Gas. The Company is now in a strong financial position from which it can pursue its long term growth strategy.
Dana Gas also announced that it was a successful bidder in the Egyptian Natural Gas Holding Company 2012 International Bid Round that took place on 18 April 2013. The Company was awarded a 100% working interest in the North El Arish Offshore (Block 6) concession area. The Company has also been pre-qualified as a non-operator in Lebanon’s 1st Offshore Licensing Round.
Sharjah
Apr 23 2013
Dana Gas, the Middle East’s leading private sector regional natural gas company, today announced that sukukholders overwhelmingly voted to approve the refinancing of the US$ 1 billion Trust Certificates (Sukuk-al-Mudarabah) issued by Dana Gas Sukuk Limited.
At the Company’s Extraordinary General Assembly Meeting (EGM) which was chaired by H.H. Sheikh Ahmed bin Sultan Al Qasimi, Honorary Chairman, shareholders present unanimously voted in favour of the transaction. At the Annual General Meeting (AGM) held earlier in the day, shareholders also passed all the resolutions.
Sukukholders with an aggregate holding of US$ 692.77 million voted, representing a quorum of 75.3% (minimum required to constitute the quorum was 51%). Sukukholders representing US$ 692.39 million voted in favour of the transaction, comprising 99.95% of the holdings of those present and voting (a minimum of 75% was required to approve the refinancing transactions). Shareholders present at the AGM also voted unanimously in favour of the Sukuk refinancing. The transaction is expected to close on or about 8 May 2013.
The terms of the transaction will lead to a reduction in the Company’s outstanding debt from US$ 1 billion to US$ 850 million as a result of a US$ 70 million cash pay-down and the cancellation of US$ 80 million of the existing Sukuk already owned by the Company. The remaining US$ 850 million will be split into two tranches: a US$ 425 million Ordinary Sukuk and US$ 425 million Convertible Sukuk, each with 5-year maturity to ensure long-term financing. The average combined 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.
Commenting on the Sukuk refinancing, HE Dr. Adel Al-Sabeeh, Chairman of the Board of Dana Gas, said: “The successful approval of the Sukuk refinancing puts the Company in a strong financial position from which to pursue our growth strategy. The agreement creates a more flexible and sustainable financial structure and balances the interests of all stakeholders. This is an excellent outcome for the Company and its shareholders and is a sign of the confidence from the international investor community in the future of Dana Gas.”
At the AGM, shareholders were given an overview of the 2012 results. Dana Gas delivered another year of strong operating performance, with net profit growth increasing 20% to AED 605 million despite the challenging geo-political environment prevailing in the areas of operations. Cash on the balance sheet increased to AED 605 million, an increase of 47% on a year-on-year basis. The Company’s strategy enabled it to capture increased value from existing assets and with improved cost management, further strengthening the foundations for sustainable growth in the years ahead.
Cash flow from operations increased to AED 648 million in 2012 from AED 364 million in 2011 primarily as a result of higher level of collections in Egypt and Kurdistan when compared to 2011. The Company collected over AED 1.1 billion from its share of receivables of which AED 596 million was collected in Egypt and AED 525 million in Kurdistan, Iraq. Recently, Dana Gas announced further significant progress in receivables collections in the first quarter 2013, amounting to AED 271 million following positive discussions with relevant authorities in both countries.
Rahid Al Jarwan, Executive Director and Acting Chief Executive Officer said: “2013 has started with increasing production and growth in demand for gas in our core markets, including Kurdistan Region of Iraq. Strong market fundamentals and an improved balance sheet and cash position would allow us to pursue new opportunities in Egypt and Lebanon. We are also looking to further enhance our performance by focusing on our value-enhancing core assets, while pursuing growth opportunities.”
22 April 2013
Sharjah,
Dana Gas, the Middle East’s leading regional private sector natural gas company, is pleased to announce it was a successful bidder in the Egyptian Natural Gas Holding Company 2012 International Bid Round that took place on 18th April 2013. The Company has also been pre-qualified as a non-operator in Lebanon’s 1st Offshore Licensing Round.
Egypt
The Company was awarded 100% working interest in the North El Arish Offshore (Block 6) concession area. The area is located offshore Nile Delta, in the eastern part of the Mediterranean Sea, in water depths of up to 1,000 meters and covering an area of 2,980 km². The concession has an 8 year exploration period comprised of three phases starting with an initial four year exploration period and two additional two year extension periods. A 20 year development lease period will be granted based on approved commercial discovery. It is expected that the new concession will be awarded in late 2013 following completion of the necessary procedures, which concludes when the concession is passed into law after approval by the competent authorities.
Rashid Al-Jarwan, Executive Director and Acting Chief Executive Officer of Dana Gas said: “We are pleased with the outcome of this bid round and look forward to the exploration and development of this very prospective new concession. The award of this concession demonstrates Dana Gas’s confidence in Egypt over the long term and the Company’s desire to optimize its coast investments and maximize the value of its portfolio of opportunities. We continue to engage in a constructive dialogue with government entities and the Ministry of Petroleum to resolve the issue of the outstanding receivables.”
Dr. Patrick Allman-Ward, General Manager of Dana Gas Egypt, stated: “We are delighted with this award which confirms Dana Gas’ belief in the remaining petroleum potential in Egypt and the Company’s long term commitment to the country. We believe Block 6 holds significant potential, lying as it does on strike with recent material discoveries in adjacent acreage in the Levantine Basin. The Block provides an opportunity for Dana Gas to expand its operating activities in Egypt into both shallow and deep water operating environments.”
Dana Gas’ operations in the Nile Delta currently produce gas and associated liquids from 10 fields. In spite of recent operational challenges, Dana Gas Egypt produced gas, LPG, condensate and crude oil at an average rate of just over 32,200 boepd in 2012. Pending resolution of the receivables position production is slated to increase in 2013 as compression facilities are added, new fields are brought on stream and work commences on increasing the throughput of the El Wastani plant to above 180 MMscfd. Further increase of production capacity to 250 MMscfd by early 2014 is designed to maximize liquids production and optimize asset value. Dana Gas is currently the 6th largest gas producer in Egypt and is firmly committed to pursuing further investment opportunities in the region, in partnership with both local and international energy companies.
Lebanon
The Company has also been pre-qualified as a non-operator in Lebanon’s 1st Offshore Licensing Round. Dana Gas will be able to bid as non-operator in the licensing round which opens on 2nd May. As part of the bid, only consortiums of minimum three companies will be awarded a block, with each non-operator obliged to have a minimum 10% working interest. There are 10 deep water exploration blocks available, ranging from 1,500 to 2,500 square km.
Companies seek to build on their $1 billion existing investment, and assist in strengthening build new relationships with local leaders.
Sharjah, 17th October 2013
Dana Gas, the region’s first regional private-sector natural gas company, and Crescent Petroleum, the oldest Middle East private oil and gas company are host sponsors for an important 100-person UAE trade delegation to Iraq. “TradeUAE-Iraq” was held from 15th to 17th April in Erbil, under the patronage of the UAE Ministry of Economy and the Kurdistan Regional Government (KRG) of Iraq, in partnership with “Dubai FDI”, “Dubai Exports”, and the Abu Dhabi Department of Economic Development, supported by Dubai Chamber and the Sharjah Chamber of Commerce and Industry, and with Emirates Airlines as the official carrier and Streamline SMG as the event organizer.
The official UAE delegation, which was led by H.E. Abdullah Saleh, Undersecretary at the UAE Ministry of Economy, and included Mr. Rashid Al-Jarwan, Executive Director and Acting CEO of Dana Gas, and Mr. Majid Jafar, CEO of Crescent Petroleum, held high-level meetings with the KRG Minister of Trade & Industry, the Minister of Housing and Transport, the Governor of Erbil, and other senior officials.
“The Kurdistan Region of Iraq is one of the most promising areas in the Middle East region for investment,” said Mr. Majid Jafar, CEO of Crescent Petroleum and Managing Director of the Board of Dana Gas. “As the largest investors in the oil and gas sector and among the first UAE companies to invest in Iraq’s Kurdistan Region, we are pleased to play this positive role in encouraging further strong economic ties and investments from the UAE.”
Trade UAE-Iraq is the first event of its kind and includes a conference at the Saad Conference Centre in Erbil, networking events, business meetings between companies from the UAE and Iraq, and site visits to local industrial projects. With the aim of strengthening economic ties, meetings and private consultations were held between participants from leading sector ministries, agencies, organisations and commercial contractors and investors from the UAE and the Kurdistan Region of Iraq.
“We are proud to be sponsors and participants in this important trade visit, in partnership with the UAE Ministry of Economy and other organizations,” said Mr. Rashid Al-Jarwan, Executive Director and Acting CEO of Dana Gas. “Events like this to promote economic and trade ties are extremely beneficial in creating new business opportunities for the private sector as well as enhancing bonds of friendship between countries”, he added.
Crescent Petroleum and its affiliate Dana Gas are already very active in the Kurdistan Region of Iraq, having invested over US$1 billion in major gas projects under contracts signed with the Kurdistan Regional Government (KRG) for the Khor Mor and Chemchemal fields. The 80,000 barrels of oil equivalent per day currently produced by the partners provides fuel for reliable and affordable electricity access for millions of Iraqis and billions of dollars in ongoing fuel savings for the regional government; all of which have underpinned the significant economic development in now seen in the Kurdistan Region.
Dana Gas and Crescent Petroleum have also implemented various local projects to support the local communities, including providing school supplies, drinking water treatment, generators and fuel, enabling 24-hour electricity for the local villages, mobile medical units, and youth sports facilities. These initiatives are assisting the local communities in improving their standard of living and well-being, and in the development of human capital in the Kurdistan Region.
Dana Gas collects US$41.3 million from Egyptian operations and US$32.4 million from the Kurdistan Region of Iraq operations so far in 2013; US$301 million collected in 2012.
• Company confident of further momentum in collection of receivables
• Sukuk refinancing on track for completion in Q2 2013
31 March 2013
Sharjah,
Dana Gas PJSC, the Middle East’s leading regional private sector natural gas company, announced today that it has collected a total of US$73.7 million (AED 271 million) in receivables in both the Kurdistan Region of Iraq and Egypt so far this year. The Company is confident of further progress in the collection of receivables in the near future due to its strong relationships in both countries and as positive discussions with relevant authorities continue.
Rashid Al Jarwan, Executive Director and Acting Chief Executive Officer of Dana Gas, said: “We are pleased to see that our strategy and efforts for addressing our receivables position in Egypt and the Kurdistan Region of Iraq is yielding results. We would like to thank the authorities in Egypt and the Kurdistan Regional Government for their continued support, and look forward to continued momentum in this process for the rest of the year. Our operations have experienced strong starts to the year and we continue to pursue expansion targets in both regions.
We would also like to thank the UAE government authorities for their continuous support extended to UAE companies like Dana Gas who are investing abroad.”
The Company’s Joint Venture in the Kurdistan Region of Iraq received a new payment from the Kurdistan Regional Government. The Dana Gas share was US$32.4 million (AED 119 million).
The new payment resulted from productive discussions between the Kurdistan Regional Government and Dana Gas during last year. This latest progress follows the payment of US$ 120 million (AED 441 million), which was paid in December 2012 by the Kurdistan Regional Government to the Company’s Joint Venture there. Dana Gas’s share of the payment was US$48 million (AED 176 million).
In Egypt, Dana Gas received a US$41.3 million payment (AED 151.7 million) in January following discussions at the highest levels with the Egyptian authorities. These discussions continue to be constructive as both sides work to address the remaining outstanding receivables in as short a time as possible. Dana Gas received a total of US$ 163 million (AED 596 million) in Egypt last year. Dana Gas would like to thank the UAE government for their continuous support throughout this process.
Dana Gas’ operations in Egypt and the Kurdistan Region of Iraq have experienced strong starts to the year. Egypt has added two new wells, West Sama-1 and Allium-1, to its Nile Delta Basin network, while further plans for expansion in the Kurdistan Region of Iraq are under discussion with the Ministry of Natural Resources and will be announced more formally when agreed upon.
The Company is also on track with its UAE Zora gas field project. Situated 33 km offshore Sharjah, Dana Gas will be appointing an EPC contractor by the end of H1 2013 and will begin drilling in Q3 2013. The facility is expected to be fully operational in 2014 and will have an average production of 60 million cubic feet per day or just over 10,000 barrels of oil equivalent per day.
Dana Gas confirms that it is on track to complete the Sukuk refinancing process in the second quarter of 2013, as previously announced. The Sukukholder meeting and final shareholder meeting to approve the refinancing transaction will be held on 23rd April 2013.
18th March, 2013
Sharjah
Dana Gas PJSC, the Middle East’s leading private-sector natural gas company, and Crescent Petroleum, the Middle East’s oldest private oil and gas company, in their capacity as joint operators, have announced that the total investment on behalf of the partners in gas operations in the Kurdistan Region of Iraq has exceeded US$1 billion. Total cumulative petroleum production from inception to date has now reached 79 million barrels of oil equivalent from continuous production from the Kor Mor field for the past four and a half years, making it the largest investment and highest level of cumulative production achieved by private companies in Iraq’s oil and gas sector.
Daily production reached a peak rate of 88,000 barrels oil equivalent per day (boepd), averaging 80,000 boepd, which includes 340 million cubic feet of gas per day and 15,000 barrels per day of condensate liquids. Total investment by the partners until end of February 2013 stood at $1,004 million, since entering into agreements with the Kurdistan Regional Government for the Kor Mor and Chemchemal blocks in April 2007, and there are plans for further expansion in investment and production levels, under discussion with the Ministry of Natural Resources.
In total, more than 375 billion cubic feet of gas and 16.5 million barrels of condensate and liquids have been produced by the companies since the start of production in October 2008, with the gas supply to local power stations enabling 1,750 MW of new electricity generation for the Kurdistan Region. This has ensured almost continuous power supply for 4 million people in the Kurdistan Region, in contrast to the electricity crisis in other parts of Iraq, and provided $9.1bn of savings in fuel costs for the government, with annual savings of $3.3bn going forward and major environmental benefits in cutting greenhouse gas emissions while transforming and energizing the economic and social development of the entire region at the same time.
“As regional companies who pride ourselves on moving quickly to address local needs, Dana Gas and Crescent Petroleum are proud to have delivered these important results, which are also a testament to the policies of encouraging private investment and local development that have been applied in the Kurdistan Region of Iraq,” said Mr. Majid Jafar, CEO of Crescent Petroleum and Member of the Board of Dana Gas. “In addition we are receiving more regular payments for our products, and are working with the KRG to resolve the outstanding receivables as soon as possible.”
Marking the important investment milestone, Mr. Rashid Al-Jarwan, Executive Director and Acting CEO of Dana Gas, said: “We thank the KRG for their cooperation and support in achieving this milestone, as well as our partners, contractors and all of our staff. We are working with the KRG Ministry of Natural Resources on the next phase of development and expansion, and look forward to growing our operations and investment to enable further progress and prosperity for the local community.”
During the project’s construction phase, work opportunities were provided for over 2,000 Iraqi workers from all ethnic groups and sects, supported by expatriate workers from over 20 nationalities in the region and worldwide. Currently employing 460 full-time employees in the Kurdistan Region, the companies have successfully implemented a nationalization programme, already achieving over 80% local staff ratio in their operations while implementing a major training programme.
The many notable technical achievements of the project include: achieving first gas in a record time of only 15 months, the installation of a 180km gas pipeline across challenging mountainous terrain that required the clearing of minefields; installation of new gas processing plantdrilling successfully to tertiary reservoir formations at depths of 2,300 meters, importing and installing over 64,000 tonnes of equipment in over 3,500 truck-loads, with pipe material supplied from China and Thailand, and the state-of-the-art gas processing plant imported from the USA.
Crescent Petroleum and Dana Gas have also implemented a corporate social responsibility programme to support the local communities, including providing school supplies, drinking water treatment, generators and fuel enabling 24 hour electricity for the local villages, mobile medical units, and youth sports facilities. These initiatives are assisting the local communities in improving their standard of living, health, well-being, security and stability and the development of human capital in the Kurdistan Region.
Sharjah
Mar 5 2013
-3 new discoveries were made in Egypt’s Nile Delta in 2012
-West Sama and Allium discoveries have already begun commercial production
-Balsam to be brought into production in H2 2013
-Production adds 10% to Company’s overall output rate in Egypt
Dana Gas PJSC, the Middle East’s first and largest regional private sector natural gas company, has announced the West Sama-1 and Allium-1 fields in Egypt have commenced commercial production, less than 2 months after initial well testing was conducted.
These new fields are among the three discoveries made by Dana Gas in Egypt’s Nile Delta Basin during the Company’s 2012 multi-well drilling programme. Dana Gas plans to bring the other field, Balsam-1, into production in H2 2013. Gas production at West Sama-1 and Allium-1 has been routed through Dana Gas’ South El Manzala and El Wastani gas plant respectively.
Mr. Rashid Al Jarwan, Executive Director and Acting CEO of Dana Gas said: “We are pleased to announce the successful tie-in of these two discoveries. The wells increase our production by 20 million cubic feet per day, providing much needed additional production to the Egyptian market and maintaining vital supplies of gas for power generation.”
Dr. Patrick Allman-Ward, Dana Gas Egypt General Manager commented: “Dana Gas is well positioned to bring new discoveries on stream due to the onshore location of our assets where tie-ins to our existing pipelines and processing infrastructure can be made quickly, relatively inexpensively and ensures a high return on our new gas discoveries”.
Production from the two wells is expected to add 3,450 boepd (20 MMcf/d) to the Company’s 2012 Egypt year-end output rate of 32,000 boepd.
Dana Gas is continuing constructive discussions with the authorities on our remaining outstanding receivables, having received $163 million from the Government in 2012.
Dana Gas is currently the 6th largest gas producer in Egypt. Dana Gas Egypt operates in the Nile Delta through the El Wastani Petroleum Company (Wasco), Dana Gas’ joint-venture company with the Egyptian Natural Gas Holding Company (EGAS). The Company is working towards increasing gas and condensate production for electric power generation and fuel supply in Egypt, and endeavors to expedite the tie-in of new discoveries to support the Egyptian people in the development of this key resource.
Sharjah
Feb 19 2013
The Board of Directors of Dana Gas PJSC is pleased to invite its esteemed Shareholders to attend the Company’s Annual General Assembly Meeting for the Financial Year ended 31 December 2012 which will be convened on Sunday 24 March 2013 at 11 AM, and the Extra-ordinary Assembly Meeting on Thursday 14 March 2013 at 11 am at the Sharjah Chamber of Commerce & Industry.
The Agenda of the Meeting is to consider and approve:
Annual General Assembly Meeting:
1- The Board of Directors’ Report on the Company’s activities and financial position for the Financial Year ended 31 December 2012.
2- The Balance Sheet and Profit & Loss Account as of 31 December 2012.
3- The Auditors’ Report for 2012.
4- Relieving the Board of Directors and the Auditors from liability for the Financial Year ended 31 December 2012.
5- No dividend distribution for the financial year ended 31 December 2012 and carrying profits forward to the next year.
6- Directors’ Remuneration.
7- Appointment of the Auditors for the Financial Year 2013 and determination of their fees
In the event the required quorum for the Annual General Assembly Meeting is not procured on 24 March 2013, the Meeting will be adjourned to Tuesday 23 April 2013 and will be convened at the same time and place as stipulated above. The second AGM meeting shall be considered quorate and validly held by any number of Shareholders present.
Extra-ordinary General Assembly Meeting:
1. To consider and approve restructuring of the Company’s Sukuk issued in 2007, by issuing ordinary Sukuk in the amount of USD 425 million, and convertible Sukuk in the amount of USD 425 million, in accordance with the terms & conditions agreed with the Sukukholders as recommended by the Board of Directors.
In the event the required quorum for the Extra-ordinary General Assembly Meeting on 14 March 2013 is not procured in the First call (quorum for which being 75%), the Meeting will be adjourned to Thursday 21 March 2013, and in the event the required quorum is not achieved in the Second call (quorum for which being 50%) the Meeting shall be held on Tuesday 23 April 2013 for the Third call (quorum being Shareholders present), and will be convened at the same time and place as mentioned above.
Shareholders are kindly requested to show proof of identity (e.g., passport, identity card, family book). Any Shareholder may appoint a proxy (other than a member of the Board of Directors) to represent him/her at the Extra-Ordinary General Assembly Meetings of Shareholders through form provided by the Company.
The registered owner of the share on the working day preceding the Assembly’s meeting has the right to vote in the Assembly.
The Company’s Financial Statements could be found on Abu Dhabi Securities Exchange website www.adx.ae and the Company’s website www.danagas.com
Proceeds to fund business development and short term obligations.
10 February 2013
Sharjah
Dana Gas PJSC, the Middle East’s leading regional private sector natural gas company, has announced that the sale of 1.675 million of its shares in MOL Hungarian Oil and Gas (“MOL”) has realised gross proceeds of
US$ 135 million (AED 495 million) for the Company. The transaction took place on Friday 8 February 2013 and leaves Dana Gas with a remaining interest in MOL of 1.486 million shares, representing approximately 1.4% of the share capital.
Rashid Al-Jarwan, Executive Director and Acting Chief Executive Officer of Dana Gas, commented: “We took advantage of market conditions to raise additional funds, which will contribute to the development of our business, and to meeting the Company’s short term obligations including those arising from Sukuk refinancing. Meanwhile our strategic partnership with MOL continues to remain strong.”
Dana Gas recently announced 20% growth in annual profits to
US$ 165 million (AED 605 million) in 2012, up from US$ 138 million
(AED 506 million) in the previous year.
The Company is currently appraising and developing its new discoveries in Egypt and the Zora gas field, located offshore UAE.
The Sukuk refinancing documentation is in the process of being finalised and subject to the necessary consents, is due to complete in the first half of 2013.
Click here to see the interview
Sharjah
Feb 3 2013
Dana Gas PJSC, the Middle East’s leading regional private sector natural gas company, has announced its preliminary financial results for the year ended 31st December 2012: Dana Gas recorded net profit growth of 20% in 2012, increasing to US$ 165 million (AED 605 million) from US$ 138 million (AED 506 million) in 2011, reflecting higher realised oil prices and optimized cost management in 2012. Comprehensive Income, which includes fair value gain on investments, grew to US$ 194million (AED 711 million) representing an increase of 295%.
In 2012, the Company collected US$ 301 million (AED 1.1 billion) from its share of receivables in Egypt and Kurdistan Region of Iraq. The Company’s cash balance improved by 47% to US$165 million (AED 605 million) by the end of 2012 compared to US$112 million at the end of 2011 (AED 411 million). Total assets at the end of 2012 increased to US$ 3.5 billion (AED 12.8 billion).
Gross revenues were slightly lower at US$ 636 million (AED 2.3 billion) compared to US$ 690 million (AED 2.5 billion) in 2011 reflecting the conservative cash policy implemented by the Company in Egypt, given the delays in collection of receivables, and also temporary suspension of Liquefied Petroleum Gas (‘LPG’) production in Kurdistan Region of Iraq following the damage to the LPG loading bay by a third party LPG tanker accident in June 2012. Revenues are expected to increase once new discoveries in Egypt are brought to production and the Kurdistan LPG loading bay is repaired by Q2 2013.
Commenting on the results, Dr. Adel Al-Sabeeh, Chairman of the Board of Dana Gas, said:
“Despite regional challenges over the past year, Dana Gas has achieved strong profit growth of 20% in 2012, as well as strengthening the cash position, and growing our operations, with production growth in the Kurdistan Region and new discoveries in Egypt. This combined with the proposed sukuk refinancing result and the international and regional high growth levels forecast for the natural gas industry, gives us considerable optimism for the company’s future, with our attention now firmly focussed on how best to realise the value for the shareholders.”
In 2012, the Company’s net production averaged about 60,000 barrels of oil equivalent per day from its interests in the Kurdistan Region of Iraq and in Egypt, where operations remain unaffected by the recent unrest in some other parts of the country. A decrease in Egypt production to an average rate of just over 32,200 barrels of oil equivalent per day is due to the conservative cash policy that Dana Gas has implemented resulting in lower capital expenditure, given the delays in receivables that the Company experienced after the recent political changes. Production levels in Egypt are expected to increase as the Company develops its three recently announced gas discoveries, and the Company is actively engaged in constructive discussions with the Egyptian authorities at high level to address the outstanding receivables in a short a time as possible.
In the Kurdistan Region of Iraq, the Company continued to increase overall production, achieving a net average rate to the company of 27,500 barrels of oil equivalent per day. LPG production in Kurdistan Region of Iraq is scheduled to resume in the second quarter of 2013 following completion of repairs to the LPG loading facilities, and the company is in discussions with the Kurdistan Regional Government to further expand production.
In the UAE upstream, agreement has been reached with the emirates of Sharjah and Ajman regarding development of the Zora gas field, located 33 kilometres from the UAE coast line. The field will be developed using a single offshore platform linked to onshore processing facilities. Once on stream, Zora will provide a valuable source of gas for local power generation in the northern UAE.
With regard to receivables, Dana Gas collected a total of US $143 million (AED 524 million) of its share from Kurdistan Region of Iraq and US$ 163 million (AED 596 million) in Egypt. In December 2012, the Company’s Joint Venture in the Kurdistan Region of Iraq received USD 120 million (AED 441 million) from the payment made by the Federal Government of Iraq to the Kurdistan Regional Government, of which the Dana Gas share of 40% was USD 48 million (AED 176 million). The Company continues to pursue outstanding receivables in Egypt and the Kurdistan Region of Iraq through high level, constructive discussions with the relevant authorities.
Rashid Al-Jarwan, Executive Director and Acting Chief Executive Officer of Dana Gas, added:
“We are now preparing to develop our three recent discoveries in Egypt and the Zora offshore gas field in the UAE. We began production from our gas liquids extraction plant joint venture in Egypt in October 2012 and we continue to increase throughput and revenue from the plant. These projects will enable us to boost the growth that our operations have achieved consistently over the past seven years.”
The fundamentals of the energy industry remain strong, with rising global demand for energy in general and natural gas in particular. The International Energy Agency (IEA) has forecast that Middle East gas demand is set to rise by 79 billion cubic meters, a 20% increase, from 2011 to 2017, outstripping incremental supply. Dana Gas has established itself as an important player in this market and is making a positive contribution to that growth.
The recent agreement on the Company’s Sukuk reached with the Ad Hoc Committee of Sukukholders, which is subject to shareholder approval, will place Dana Gas on a stronger financial footing in the interests of all stakeholders. The Company is currently pursuing the steps necessary for seeking the consent of the shareholders, existing Sukuk holders and the approvals of the regulatory authorities, in order to successfully complete the Transaction during the second quarter of 2013.
Sharjah
Jan 3 2013
Dana Gas PJSC, the Middle East’s largest private sector natural gas company, is pleased to provide an operational update on its Egyptian Bahrain Gas Derivatives Company “EBGDCo” Natural Gas Liquids (NGL) extraction plant at Ras Shukheir, Egypt.
The plant began operating commercially on 1 October 2012. In its first 3 months, the plant has processed a combined 12,340 metric tonnes of Propane (10,500) and Butane (1,840). The average gas flow-rate for the quarter was 75 million standard cubic feet per day (mmscfd) with recovery rates of 98.9 per cent and 99.9 per cent respectively.
The NGLs, which Dana Gas extracts from the main gas flow, provide an additional revenue stream. Total additional revenue from NGL sales to date is US$ 7.7 million, of which Dana Gas has used US$2.8 million to repay the first instalment of the project’s development financing. NGLs extracted at Ras Shukheir are exported to international customers.
Rashid Al Jarwan, Executive Director and Acting CEO of Dana Gas, said:
“We are pleased with the results to date and are looking ahead to 2013 as the project shifts towards a more fully operational plant and our flow-rate increases from nearby gas fields.
“This project also provides strong validation of our strategy of continued focus and work on our Egyptian assets. We expect to continue to execute on this strategic model, where our long history, experience and deep local area expertise will provide us with an advantage as we grow our asset base and commercial reserves.”
EBGDCo has completed all outstanding project items related to the plant other than the finalisation of the design and testing programmes on the gas flow-rate which is being conducted by Exterran, a global market leader in full service natural gas operations. Once testing is complete and the plant is fully operational, EGBDCo anticipates extraction of 120,000 tonnes per annum of propane and butane from a gas stream of 150 mmscfd. The feed gas rate is expected to increase gradually once gas is received from gas fields in and around Ras Shukheir area.
The EBGDCo is a Natural Gas Liquid (NGL) extraction plant based in Ras Shukheir, Egypt. Its main activities are gas processing and marketing of liquid propane and butane to local and international markets. The total cost of the project was AED 460 million, which was partly funded through AED 318 million of project finance and AED 105 million of equity, with the remaining to be funded through internal revenue. Dana Gas has contributed AED 28 million as its share of equity.
Dana Gas has 26.4% interest in EBGDCo. The interest is held through Dana Gas’ 66% ownership of Danagaz Bahrain. Other shareholders include Egyptian Natural Gas Holding Company (EGAS) with 40% shareholding and Arab Petroleum Investments Corporation (APICORP), a pan-Arab financial institution based in Saudi Arabia, with 20%.
Dana Gas has recently 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).
Dana Gas has a successful track record of gas discoveries in Egypt stretching back to the date the concession areas were awarded in June 2005. With investments exceeding $1.68 billion Dana Gas has become the 6th highest gas producer in Egypt, a country whose gas reserves have doubled in the past 5 years to over 70 trillion cubic feet, and which is among the world’s top ten exporters of LNG. The Company is firmly committed to pursuing long-term partnerships with Egypt’s national companies and other energy companies from the region and internationally.
Sharjah
Jan 9 2013
To see the interview please click here
http://www.alarabiya.net/articles/2013/01/09/259528.html