Dana Gas Reports 15% Rise in Full Year Profits

Dana Gas has reported full year net profit increase of 15 percent to $144 million (AED528 million).

For the year ended December 31, the company reported gross revenues and gross profit of $417 million (AED1.5 billion) and $126 million (AED463 million) respectively, down from $683 million (AED2.5 billion) and $303 million (AED1.1 billion) for the full year 2014.

The company said Sunday that fall in revenue and gross profit was directly attributable to the sharp decline in world oil prices last year, as well as a 15 percent production decline in Egypt.

During the year the company also significantly increased its oil & gas reserves. Gaffney Cline & Associates has certified Dana Gas's Proved Reserves in Egypt at 83 MMboe, an increase of 41 percent. In addition, Proved plus Probable (2P) reserves of Dana Gas Egypt increased to 130 MMboe corresponding to a reserve replacement ratio (RRR) of 237 percent. The Zora Field 2P reserves remained steady at 31 MMboe.

Dana Gas Egypt recorded full year production of 33,900 boepd as compared to 39,900 boepd in 2014. This 15 percent drop in production in Egypt is consistent with normal field declines, Dana Gas said.  In the second half of 2015, the successful Balsam-2 and -3 wells added 165 Bcf to the field’s proven and probable reserves, bringing gas initially in place to approximately 391 Bcf (67 MMboe) across the entire Balsam concession. The Balsam-2 well came on stream in late 2015 and along with Balsam-1 and Balsam-3, which was brought on stream six months ahead of schedule, the Balsam Field is cumulatively producing 24 million standard cubic feet of gas a day (5,000 boepd including condensate) which has partly offset the natural field declines.

In May 2015, Dana Gas confirmed it completed an agreement with BP for the drilling of the first exploration well in the Nile Delta’s El Matariya (Block 3) onshore Concession Area. Under the terms of the agreement, BP as operator will carry Dana Gas for its 50 percent share of the cost of the well, subject to an agreed cap of $39 million.

The company ended the year with an average total production of 63,900 barrels of oil equivalent per day (boepd), a 7 percent decrease compared to 68,900 boepd at end 2014, although production in Kurdistan saw an increase of 800 boepd (3 percent) of production.