Dana Sells Egyptian Onshore Assets

Middle East and North Africa-focused Dana Gas has agreed to sell its onshore Egyptian oil and gas assets to US independent IPR Energy for $236mn including contingent payments, it said on October 25.

The binding sales agreement covers 100% interests in the El Manzala, West El Manzala, West El Qantara and North El Salhiya onshore concessions and associated development leases. These concessions produced 30,950 barrels of oil equivalent/day in the first half of the year.

The payment comprises a base cash consideration of $153mn, including the net working capital associated with the assets and before any closing adjustments, along with contingent payments of up to $83mn, subject to average Brent prices and production performance between 2020-2023, as well as the realisation of potential third-party business opportunities, Dana said.

Dana, through its wholly-owned subsidiary Dana Gas Egypt, will retain its interests in the onshore El Matariya (Block 3) exploration concession and the North El Arish (Block 6) offshore concession.

“This asset sale is in line with Dana Gas’ strategic goals of strengthening its balance sheet and focusing on the development of its world class assets in the Kurdistan Region of Iraq,” Dana said.