Dana Gas output up 17%

05/11/2013 09:08 AST

Dana Gas’ average production grew 17 per cent year-on-year to 66,850 barrels of oil equivalent per day (boepd), driven by Egypt, which saw a sharp increase in quarterly production of around 30 per cent.

Dana Gas earning fell slightly to Dh102 million in the third quarter, down from Dh104 million in the same period last year on higher depreciation and higher royalty. However, gross revenue for the third quarter grew 21 per cent year-on-year to Dh623 million, the company said in a regulatory statement to Abu Dhabi Securities Exchange.

The company said it was owed Dh2.78 billion in total trade receivables. In Egypt, it was owed Dh1.09 billion at the end of September, up from Dh960 million at the end of June. In Iraq, where Dana Gas operates in Kurdistan, trade receivables grew to Dh1.65 billion at the end of September from Dh1.47 billion at the end of June.

“We have been given strong indications by the Egyptian government regarding planned payments in the next few months,” said Dr Patrick Allman-Ward, chief executive officer of Dana Gas.

For the first nine months, the energy firm reported a decline in earnings to $121 million due to lower hydrocarbon prices, suspension of LPG production since mid-2012 and a one-off higher cost of sales in the second quarter of 2013 in Kurdistan. Dana Gas’ share of production in Kurdistan the quarter remained stable at 27,100 boepd. Dana Gas Egypt’s gas, LPG, condensate and crude oil output averaged 39,350 boepd in the quarter ended September 20, 2013, a massive increase of around 30 per cent over the third quarter 2012 average production.

During the period, the company had also announced that it reached record gas production levels equivalent to 41,500 boepd (including over 8,000 barrels per day of associated liquids), the highest level in two years and representing a growth of around 30 per cent over the 2012 average production. In the Kurdistan region of Iraq, the company’s share of production in the Khor Mor Field for the third quarter averaged 27,100 boepd at the same of level of last year.

The reconstruction and upgrading of the LPG loading facilities at the Khor Mor processing facility is complete and the plant has the capacity to produce up to 900 tonnes per day of LPG, the equivalent of 10,000 boepd. Together, the group’s net production averaged 66,850 boepd, a significant increase of 17 per cent, from its interests in Egypt and the KRI during the third quarter ended 30 September 2013.

Khaleej Times