- Peak Production of 39,000 boepd, an increase of 13% over 2012
- Dana Gas Egypt operations and production remains unaffected
- Total investments in Egypt exceeds US$1.8 billion
- Ongoing discussions with regulatory authorities to improve receivables, increase capital expenditure and enhance production
Dana Gas PJSC, one of 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.