Dana Gas Reports $376mn Loss in 2020
The Middle East and North Africa-focused Dana Gas slipped into red during the 12 months to December 31 owing to impairment losses relating to the sale of its Egyptian onshore assets, it said on February 11.
The company reported a net loss of $376mn last year versus a net profit of $157mn in 2019. A total of $412mn of impairments were incurred, mostly connected with Dana's sale of the El Manzala, West El Manzala, West El Qantara and North El Salhiya concessions in Egypt to US independent IPR Energy, agreed last October, for $236mn. Excluding one-off items, the company reported a profit of $36mn, down 60% year/year.
Production declined 5% yr/yr last year, averaging 63,200 boe/d versus 66,200 boe/d in 2019. Dana enjoyed a 2% bump in output from its operations in Iraqi Kurdistan (KRI) t0 32,250 boe/d. The company plans to complete its first 250mn ft3/d gas processing train in the region in the first quarter of 2023, but is examining ways to bring forward the schedule.
The company will also look to drill up to five development wells in KRI next year, and is continuing evaluation of Block 6 in Egypt, interpreting the infill seismic data that was acquired in mid-2020 and planning for drilling the next exploration well in 2023.
“In 2021, we aim to advance the development of our world class assets in the KRI, where over 90% of Dana Gas’s proven reserves of over 1bn boe are located, while concurrently moving ahead with our plans to prepare for the drilling of the next exploration well in Block 6 in Egypt, which holds exciting, material upside potential,” CEO Patrick Allman-Ward said.
Allman-Ward told reporters the sale of its onshore Egyptian assets was expected to close in the first half of 2021, subject to conditions and approval from Egypt’s petroleum and mineral resources ministry, Reuters reported. Pearl Petroleum, a consortium majority-owned by Dana and its affiliate Crescent Petroleum, is in the final stages of securing a loan of up to $250mn from the US International Development Finance Corporation (DFC), the news agency quoted the CEO as saying.