Dana Gas Gets $60 mn from Egypt

Dana Gas on Sunday said that it has received from the Egyptian Government a payment of $60 million as part of outstanding debt.

The payment represents 28% of the total overdue receivables of $212 million and has been received in the form of $10 million and the balance in equivalent Egyptian pounds, the company said in a statement.

Earlier in 2014, Dana Gas and the Egyptian Government signed the landmark Gas Production Enhancement Agreement (GPEA) which allows the company to significantly enhance production and gradually recover its outstanding receivables in a phased manner over a 3-year period going forward.

Dana Gas was also recently awarded the North El Salhiya (Block 1) and El Matariya (Block 3) onshore concessions in the Nile Delta as part of the 2014 EGAS bidding round held recently in Egypt. The company will operate the Block 1 concession area on a 100 percent basis.

“It is expected that exploration success and future production from conventional gas reservoirs in the Block, utilizing Dana Gas’s existing infrastructure, has the potential to extend the Company's highly successful gas production business onshore the Nile Delta,” the company ststed.

Dana Gas Egypt will participate in the Block 3 concession area on a 50 percent  basis with BP as partner and operator.

In addition, Dana Gas has 100% working interest in the North El Arish (Block 6) concession area, offshore the eastern Nile Delta. Multiple play types have been identified within the acreage and plans for the first exploration phase includes seismic acquisition and the drilling of one exploration well.