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.