Dana Gas has received from the Egyptian Government authorities the payment of AED 194 million (US$ 53 million) from the current total outstanding receivables of AED 1,210 million (US$ 330 million). Payment of $ 42 million has been received in US dollars and the balance in equivalent Egyptian pounds. Including this tranche, during 2013, Dana Gas has received a total of AED 476 million (US$ 130 million) from the Egyptian Government authorities. The Egyptian Government has committed to work with the Company on a plan to repay the remainder of the outstanding receivables over an agreed time frame.
Whilst Dana Gas has had on-going discussions with the Egyptian authorities to resolve the issue of outstanding payments, it has also been able to increase production for the benefit of the Egyptian economy and its people. Dana Gas Egypt’s gas, LPG, condensate and crude oil production averaged 39,350 boepd in Q3 2013, a significant increase of 29% over the Q3 2012 average production. During Q3 2013, the Company also announced that it reached a record production level of 41,500 barrels of oil equivalent per day “boepd” (including over 8,000 barrels per day of associated liquids).
Dana Gas sponsored and participated in the "GCC-Egyptian Investment Forum" held in Cairo on 4-5th December 2013, co-hosted by the Egyptian Ministry of Investment and the UAE Government. Following this occasion, Dana Gas was honoured to receive a certificate of appreciation from the UAE Ministry of Foreign Affairs.
Patrick Allman-Ward, Chief Executive Officer of Dana Gas, said: “We would like to thank the Egyptian Government for making this payment. We are working closely with the authorities to find creative solutions to fast track the repayment of the remaining outstanding receivables and ongoing payments schedule going forward. An early resolution in this regard will encourage new investments in the Oil & Gas sector in Egypt leading to higher domestic production”.