Dana Gas, the Middle East largest regional private sector natural gas Company announced its financial results for the first quarter ended 31 March 2015.
First quarter 2015 group production remained strong, with the Company delivering an average of 68,700 barrels of oil equivalent per day (‘boepd’) from its assets in Egypt and in the Kurdistan Region of Iraq (KRI). Group production has remained stable on a year-on-year basis (Q1 2014: 68,800 boepd) and the Company continued to be profitable despite the significant fall in global energy prices, the difficult macroeconomic environment in Egypt and the unpredictable security environment in Iraq. Additionally, Dana Gas Egypt signed a financial lease with CorpLease for certain equipment (equipment lease tranche) for an amount of $ 12.2 million.
Dana Gas Egypt saw a total production of 37,700 boepd compared to 39,100 boepd in Q1 2014 due to the natural decline in gas wells. The GPEA has committed Dana Gas to a seven year staged, $350 million work program with 20 new development wells and 17 work-overs of existing wells. The Company will keep the proceeds from incremental liquid sales, which will be used to pay down the receivables owed by the Egyptian Government.
Dr. Patrick Allman-Ward, Chief Executive Officer, commented: “Dana Gas has maintained a high-level of production across our operations and has delivered positive revenue and profit numbers despite the steep fall in hydrocarbon prices, the difficult macroeconomic environment in Egypt and the unpredictable security environment in Iraq. Our operational success and financial stability can also be attributed to our continued focused approach to capital expenditure and our cost discipline. With the GPEA project in Egypt making progress, we are in good shape to not only sustain but markedly increase our production in Egypt in the medium term.”
(Dana Gas Press Release)