DUBAI: Dana Gas PJSC, the foremost private sector natural gas entity within the United Arab Emirates, has recently announced the receipt of a $20 million payment from the Egyptian government.
The transaction raises the total funds acquired from Egypt in the fourth quarter of 2024 to $24.5 million. Such financial inflows are pivotal for Dana Gas, particularly in reinforcing its operational capacity in a key market where it has been active since 2007.
The company has articulated plans to reinvest this latest payment into its existing operations in Egypt. As part of a strategic investment initiative, Dana Gas aims to drill 11 new wells, with each well anticipated to incur an average expenditure of $3-5 million.
Scheduled to commence in February 2025, these drilling activities will span approximately 18 months, representing a significant commitment to enhancing production capabilities in the region.
As of September 30, 2023, Dana Gas reported receivables totaling $60 million from its Egyptian operations, underscoring the financial significance of this evolving landscape. The recent capital infusion notably bolsters the company’s liquidity position, potentially enabling the resumption of dividend payments to shareholders—a critical consideration for investor confidence and long-term corporate sustainability.
Dana Gas, listed on the Abu Dhabi stock exchange, continues to diversify its portfolio with primary assets situated not only in Egypt but also in the United Arab Emirates and the Kurdistan Region of Iraq. This strategic orientation positions Dana Gas favorably amidst fluctuating market conditions, further asserting its role as a leader in the regional energy sector.
