Dana Gas has reported positive results from its Egypt drilling programme alongside the full settlement of overdue receivables.
The company said it received AED 79 million ($21.5 million)
in additional payments, confirming the clearance of all outstanding arrears in
Egypt and the continuation of timely payments from the Egyptian Government.
Dana Gas said the progress reflects improved fiscal terms
under the Consolidated Concession Agreement and stronger cooperation with
authorities aimed at boosting upstream investment and domestic gas output.
The company is executing a $100 million investment programme
focused on stabilising and growing production across its Nile Delta assets.
It reported a return to production growth in Q1 2026, with
average output rising 4 per cent year-on-year to 13,060 barrels of oil equivalent per
day, the first annual increase since 2017.
During 2025, Dana Gas drilled four wells and completed
workovers on three others, adding around 30 million standard cubic feet per day
of production and 36 billion cubic feet of reserves.
Recent drilling has exceeded expectations, with the latest
well uncovering about 10 Bcf of gas reserves versus an initial estimate of 3
Bcf, opening new development potential.
The company plans to drill four additional wells before the
end of 2026 as it continues expanding its Egypt portfolio.
Richard
Hall, Chief Executive Officer, said: “The Egyptian Government’s
settlement of all outstanding receivables and the return to full, timely
payments are important developments that give us greater confidence to continue
investing in Egypt. Combined with the progress we have made operationally over recent months, this demonstrates the benefits of the
investment programme that we continue to execute.
We are
already seeing tangible operational results. Production returned to growth in
the first quarter for the first time since 2017, and our latest well results
have exceeded expectations.
The most
recent well has identified significantly more gas resources than originally
anticipated, highlighting both the quality of our acreage and the opportunities
that remain across our portfolio. The result opens up additional development
and exploration potential and further strengthens our confidence in the
long-term outlook for the Egypt business.
We are also
grateful for the continued support and positive actions of the Ministry of
Petroleum and Mineral Resources, EGPC and EGAS, whose actions are
helping encourage investors in
the energy sector to increase domestic gas production and reduce country’s
dependence on gas imports.” -OGN/TradeArabia News Service
