- 9M 2015 revenue is US$324 million and net profit is US$10 million
- Average quarterly production remains above 60,000 boepd
- An estimated 165 Bcf of 2P gas reserves were added from the Balsam-2 development well and the Balsam-3 exploration well in the Nile Delta, Egypt; part of the GPEA investment programme that will boost production by an estimated 35 MMscf/d of raw gas in 2016
- UAE Zora Gas project nearing completion, will add 10% upside to group production
- Ongoing focus on cost management and prudent utilisation of cash
Dana Gas, the Middle East’s largest regional private sector natural gas company today announced its financial results for the nine months and third quarter ended 30 September 2015.
An extended period of low prices, which is affecting earnings across the sector, combined with a consistently challenging global economic environment, has resulted in the Company reporting nine months 2015 gross revenues and net profit of US$ 324 million and US$ 10 million respectively, as compared to US$ 541 million and US$ 129 million in the same period 2014.
Average production in the third quarter 2015 was 60,800 barrels of oil equivalent per day (boepd). Dana Gas Egypt is pleased to report a significant gas discovery at Balsam-3, and that it has proved up additional 2P reserves with the Balsam-2 development well, both located in the Balsam Developmental Lease in the Nile Delta region. Preliminary estimates have put the additional 2P reserves at 165 billion cubic feet (Bcf) of gas, equivalent to 28 million barrels of oil equivalent.
Dana Gas has continued to drive further cost reductions during the third quarter. Since the beginning of the year the Company has cut US$ 5 million in costs by lowering G&A as well as reducing the workforce in quarter four 2015. Furthermore, because of early conversions on the convertible sukuk in early 2014, the Company has saved approximately US $4 million in interest payment during 2015. This has resulted in a company better positioned to operate in a low oil price environment going forward.
Dr Patrick Allman-Ward, CEO Dana Gas, said:
“In the Nile Delta, we are pleased to announce the outcome of two successful wells in the Balsam Development Lease. Both Balsam 2 and 3 wells had excellent results and initial estimates indicate a 2P reserve addition of about 165 Bcf, with a high condensate yield. The wells open up further development potential that will be pursued in 2016. We expect first production from the Balsam Field to come on stream before the end of the year. This is also the first gas resulting from our new investment program linked to the Gas Production Enhancement Agreement signed with the Egyptian government in August 2014. It represents a notable milestone as we start to add incremental production, generate additional revenues and reduce our outstanding receivables position.”
“The market remains extremely tough on producers but Dana Gas continues to be resilient and our focus on managing our cost base is yielding positive results. It has helped us to partially offset the low oil price environment and reduction in production to post a nine-month net profit of US$ 10 million.”
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