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Dana Gas PJSC, the Middle East's largest regional private sector natural gas company, announces that as a result of the ramp up of production from its debottlenecking project in the Kurdistan region of Iraq, its group production reached 70,000 barrels of oil per day (boepd) on the 19 November and has since been sustained above that level.

The Company's principal operations are in the Kurdistan Region of Iraq (KRI) and Egypt, where the drilling of the Balsam-8 well has also led to a sharp increase in overall production. Current group production, in excess of 70,000 boepd, represents a significant increase compared to the Company's 9M 2018 average of 62,250 boepd.

Dr Patrick Allman-Ward, CEO, Dana Gas, said:

"Production in excess of 70,000 barrels oil equivalent per day is a great achievement for Dana Gas. At the start of the year, we planned a drilling programme in Egypt and a debottlenecking project in the KRI that would significantly increase production. We have successfully delivered both projects. The increase in production will help offset the lower realised hydrocarbon prices that have impacted the oil industry in the last quarter and support growth in our revenue and net profit figures for the full year 2018 and beyond.

"We remain excited about the long-term future of our world-class assets in the KRI. Further investment is underway to double current production to 900 MMscf/d over the coming three years, together with an increase in condensate to 36,000 bpd and LPG to 1200 MTpd."

In the fourth quarter 2018, Dana Gas Egypt completed the drilling of the Balsam-8 well and tied it in to the network. The well was completed ahead of schedule and under budget, adding over 5,000 boepd to the Company's output.

In the KRI, the Company announced a 30% increase in production capacity at the Khor Mor field (pictured), which it jointly operates on behalf of Pearl Petroleum. The expansion of the gas processing plant consisted of a series of plant additions and modifications to de-bottleneck throughput, raising output capacity from 305 MMscf/d of natural gas to 400 MMscf/d, with over 15,000 barrels per day of condensate. This is expected to add up to $50 million annually to the top line without incurring any additional operational costs.

The Company recently posted a strong set of quarterly financial results. 9M 2018 revenue increased 6% to $351 million (AED1,287 mm) from $330 million (AED1,210 mm) over the same period last year and 9M 2018 net profit was $41 million (AED149 mm) versus a net loss of $6 million (AED22 mm) in 9M 2017, excluding one-off items.

(Source: Dana Gas)

Dana Gas and Crescent Petroleum Announce 30% Gas Production Increase in Kurdistan Region

Dana Gas, the Middle East's leading publicly-listed regional natural gas company, and its partner Crescent Petroleum, have announced achievement of a 30% increase in production capacity at the Khor Mor field in the Kurdistan Region of Iraq, which the companies jointly operate on behalf of Pearl Petroleum.

This increase delivers much-needed gas supply to fuel power plants in the region, and marked a major milestone as the companies commemorate 10 years of continuous production in the region in a special ceremony with the Kurdistan Regional Government in Erbil.

The expansion at the Khor Mor gas processing plant consisted of a series of plant additions and modifications to de-bottleneck throughput, raising output capacity from 305 MMscfd of natural gas to 400 MMscfd, with over 15,000 barrels per day of condensate.

The Plant, which began operating in 2008, supplies natural gas from the Khor Mor field by pipeline to power plants in the towns of Chemchemal and Erbil, and will soon supply a new plant in Bazian. The Khor Mor Plant also produces LPG and NGL, which are sold and trucked to the local markets.

Under a Gas Sales agreement signed in January 2018 with the KRG Ministry of Natural Resources, Pearl Petroleum will sell the additional quantities of gas to supply the power stations with affordable, environmentally favourable fuel, and further enhance electricity supplies.

The plant expansion comes online as Pearl celebrates a decade of production in the KRI. At a ceremony in Erbil attended by Kurdish Regional Government Prime Minister Nechirvan Barzani, Minister of Natural Resources Dr. Ashti Hawrami, and other senior officials, Board Members and senior executives from the companies commemorated the partnership between the companies and the KRG in delivering progress and improved services to the people of the region over the past decade.

Total investment in the Kurdistan Gas Project to date exceeds $1.4 billion with total cumulative production over 250 million barrels of oil equivalent (boe), which has resulted in over $20 billion of fuel cost savings and economic benefits for the Kurdistan Region and Iraq as a whole. Further investment is underway to expand production to 900mmscfd per over the coming 3 years, together with associated liquids.

Mr. Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, commented:

"This production increase marks an important milestone as we also commemorate ten years of continuous production, and the beginning of a new chapter of expansion in operations and production which will see a further investment of over $600 million over the coming few years and a more than doubling of production again.

"The gas we have produced has led to significant fuel savings and social and economic value for the economy, and we hope to grow this in the years to come from the significant resources of these world class fields, for the benefit of the Kurdistan Region and all of Iraq."

Dr. Patrick Allman-Ward, CEO of Dana Gas, added:

"Despite many challenges over the past ten years we are proud to have maintained our production levels and operations and now with the settlement of all past receivables last summer and continuous payments since then, we look forward to significantly growing production to meet the growing demand for gas and electricity in the Kurdistan Region and Iraq as a whole."

In August 2017, Pearl Petroleum reached a full and final settlement with the KRG of the arbitration between them, including receiving $1 billion in cash from the KRG for past receivables and committing to expand their investment and operations in the region.

These expansion plans include a multi-well drilling program now underway in both the Khor Mor & Chemchemal fields, as well as installation of additional gas processing and liquids extraction facilities.

Operation full-time staff numbers are over 600 with over 80% local staff, and training programmes to increase this figure further. In addition, the companies has contributed to local communities with support for local power generation, education and healthcare facilities, as well as support programmes for internally displaced people in Iraqi.

The Kurdistan Gas Project was established in 2007 as Dana Gas and Crescent Petroleum entered into agreement with the Kurdistan Regional Government (KRG) for exclusive rights to appraise, develop, produce, market, and sell petroleum from the Khor Mor and Chemchemal fields in the Kurdistan Region of Iraq (KRI).

Production from the newly built plant in Khor Mor began 15 months later, in October 2008, an industry record. In 2009, Pearl Petroleum was formed as a consortium with Dana Gas and Crescent Petroleum as shareholders, and with OMV, MOL, and RWE joining the consortium subsequently with a 10% share each.

(Source: Dana Gas)

Crescent Petroleum and Dana Gas deliver vital support to AMAR IDP clinics

As Iraq’s security conditions have improved, international donors have turned their attention to other troubled parts of the world, leaving many IDP camps in the country on the brink of closure.

Thanks to the continued support of Crescent Petroleum and Dana Gas, however, AMAR have continued to deliver much needed healthcare and support to Khanke Camp’s 16,000 residents

Nearly 2 million Iraqis remain displaced within Iraq, a vast proportion of them still in camps for internally displaced people (IDPs). From victims of conflict who have lost homes and livelihoods to families too afraid to return to their homes after the violence of recent years IDPs remain among the most vulnerable population in the country.

After the trauma of violence and displacement, families in the camps continue to rely on the safe, supportive and nurturing environment in the camp to start rebuilding their lives. But with charitable funding drying up, many camp facilities, especially health care centres, are facing imminent closure.

Dana Gas and Crescent Petroleum, which have contributed considerably to causes within Iraq, remain committed to AMAR’s services in Khanke, delivering vital health and wellbeing services to the thousands of residents at the camp.

Crescent, one of the Middle East’s oldest and largest upstream oil companies, and Dana, one of the largest private-sector natural gas companies in the region, are committed to helping AMAR deliver vaccinations, antenatal care and child health monitoring at the camp.

“IDPs are among the most vulnerable people in Iraq, but sadly they are often overlooked by donors,” said Majid Jafar, CEO of Crescent Petroleum. “We are proud to be partnering with AMAR to provide critical healthcare services and training to the people in Khanke camp.”

A key part of the health programme at the camp are the Woman Health Volunteers (WHVs), who are the front line to identifying health and wellbeing issues among the residents and are trained to deliver health care when needed. Between April and June of this year, the WHVs made thousands of home visits to families at the camp, providing basic healthcare services and delivering health advice, in addition to providing mental health outreach. In all, the WHVs offered support and services to more than 15,000 people during the spring period.

One AMAR WHV, Thikra, for example, recently paid a visit to the Jamila family in the camp. One of the family’s sons had been showing distressing changes in behaviour, including fatigue, excessive sleep and weight gain. Thikra identified the signs of depression in the boy and confided in Mrs. Jamila to openly discuss her son’s symptoms. She then advised the mother to seek a medical assessment for boy’s the condition and set the family on the path to recovery.

Thikra’s work is funded by Dana and Crescent, and is emblematic of the kind of support the companies are funding and promoting in the community.

The companies also provide funds for vocational training programmes in the camps, including sewing and design, IT, and English lessons, providing residents the opportunity to develop skills that can boost their chances of finding employment or to set up their micro-business of their own.

Crescent Petroleum and Dana Gas are among the largest private foreign investors in Kurdistan. Their focus is on developing the region’s natural resources in sustainable way to deliver lasting benefits to local communities. Their US$1.1bn development of the Khor Mor gasfield provides the natural gas to power electricity plants in Erbil and Chamchamal, delivering 1,700 MW of electricity to over 4m people living in the region.

LPG Plant in Kor Mor

Patrick Allman-Ward, CEO of Dana Gas’, said:

“We are committed to developing resources in Kurdistan to provide power to communities and build the structures for inclusive growth, as well as to tackle the economic and social factors that are a barrier to this development. We look forward to strengthening our partnership with AMAR in the future so that we can continue working towards these goals across the region.”

Other projects Dana and Crescent have funded in Kurdistan include renovating and supplying schools, funding hospitals and providing potable water to villages.

Baroness Nicholson, AMAR’s Founder and Chairperson said:

“It is vital that we continue to provide healthcare and education in the camps, as people living there continue to experience extreme deprivation. Thanks to the exceptional generosity of Dana and Crescent, we are able to do this in Khanke. We are very grateful to them for giving us the opportunity to bring relief and support to communities in real need.”

(Source: AMAR)

By Robert Cole, AMAR Foundation.

Crescent Petroleum, one of the Middle East’s oldest and largest upstream oil companies, and Dana Gas, one of the largest private sector natural gas companies in the region, have joined forces to fund the running costs of a healthcare centre and vocational training centre for displaced people in the Kurdistan Region of Iraq for the next three years, the two companies today announced.

The three-year commitment will fund the entire running costs of AMAR International Charitable Foundation’s Primary Healthcare Centre and vocational training centre in Khanke Camp, which serve the whole community, including 16,000 Yazidi residents.

The healthcare centre plays a vital role in providing healthcare to those who would otherwise be unable to access medical support. In the second quarter of 2017, the clinic saw 26,404 cases, conducting 5,411 maternal health consultations and 2,034 child consultations.

Commenting on the donation, Crescent Petroleum’s CEO Majid Jafar said:

“At Crescent Petroleum, we aim to empower local communities by not only providing energy solutions to fuel their development, but also by responding to their social and economic needs. Internally displaced people (IDPs) are among the world’s most vulnerable populations but they are often overlooked by international relief efforts, and we are committed and honoured to assist their healthcare needs in partnership with AMAR Foundation.”

The natural gas produced by the companies from the Khor Mor field supplies more than 1,750 MW of affordable electricity to the Kurdistan Region, giving schools, hospitals and other vital entities a non-disruptive water and electricity supply for millions of people.

The Duhok Health Directorate has seen the population of the region more than double over the last two and a half years due to the massive influx of IDPs from the Sinjar and Mosul regions, putting increasing pressure on healthcare access.

Patrick Allman-Ward, Dana Gas’ CEO, said:

“Our corporate social responsibility programme has been at the heart of Dana Gas’ operations since its inception in 2005. Providing financial support to those in need is not only a moral obligation, it also has a positive impact on the communities where we operate.”

AMAR’s Chairman and Founder, the British Conservative Peer, Baroness Nicholson of Winterbourne, said she was “overwhelmed” by the generosity of Dana Gas and Crescent Petroleum:

“AMAR builds, staffs and runs five state-of-the-art heath centres on an extremely low budget. The generous donation from Crescent Petroleum and Dana Gas means we can continue with the marvellous work being done in Khanke by our locally trained doctors and nurses for the next three years.”

PLEASE CLICK HERE IF YOU CAN HELP – ANY AMOUNT LARGE OR SMALL.

(Source: AMAR Foundation)

In its Q1 Financial Report, Dana Gas reports that its production has fallen 16 percent in Iraqi Kurdistan:

KURDISTAN REGION OF IRAQ - RESERVES UPDATE

As reported previously Dana Gas and Crescent Petroleum, joint operators of Pearl Petroleum Company Limited ("PPCL"), estimate that P50 total geologically risked resources of petroleum initially in-place (PIIP) of the Khor Mor and Chemchemal Fields to be 75 Trillion standard cubic feet (Tscf) of wet gas and 7 billion barrels of oil.

PPCL appointed Gaffney Cline Associates ("GCA"), to carry out a certification of the reserves for these fields as at 31^st December 2015 based on a comprehensive data set comprising ca. 1200 km 2D seismic, the 11 wells drilled in the two fields to date plus field production data over a period of seven years.

In their report dated April 2016, GCA provided Proved plus Probable (2P) gas and condensate reserves estimates for both fields. For Khor Mor these are 8.5 Tscf and 191 MMbbl and for Chemchemal 6.6 Tscf and 119 MMbbl respectively. Total Dana Gas share of the Khor Mor and Chemchemal 2P reserves is therefore 5.3 Tscf gas and 109 MMbbls condensate, equivalent to 990 MMboe.

GCA's report confirms Dana Gas' and Crescent Petroleum's belief that Khor Mor and Chemchemal have the potential to be the largest gas fields in the KRI and indeed in the whole of Iraq, making them world class assets.

PRODUCTION & DEVELOPMENT PROGRESS

Dana Gas' share of gross production (35%) in the KRI was 25,500 boepd as compared to 30,400 boepd in Q1 2015. On a retrospective basis, Q1 2015 production on a 35% equity share would be 26,600 boepd. Production has therefore declined by 4% quarter on quarter as LPG train optimisation continues.

By John Lee.

Bloomberg reports that Dana Gas PJSC is still waiting for payment of the $1.98 billion that it and two other energy companies -- Crescent Petroleum and Pearl Petroleum -- were awarded by the London Court of International Arbitration (LCIA) in November.

The court gave the Kurdistan Regional Government 28 days to pay when it made its ruling on 29th November. The KRG disputed the judgement, claiming that the court had yet to hear its counterclaims.

Patrick Allman-Ward, CEO of the Sharjah-based company, told Bloomberg he did not expect to be paid all in one go, and is open to getting paid over time.

The claims relate to payment for production at the Khor Mor and Chemchamal gas fields.

(Source: Bloomberg Business)

By John Lee.

Dana Gas has reported a 67 percent rise in operating profits in 1Q 2014 to US$ 45 million (AED 164 million) as compared to US$ 27 million (AED 98 million) in Q1 2013.

This excludes the one-off gains of US$ 39 million (AED 143 million) profits arising out of the partial sale of MOL shares in 1Q 2013.

Gross revenues achieved in 1Q 2014 were US$ 180 million (AED 660 million), 18% higher than Q1 2013’s revenue of US$ 152 million (AED 557 million).

Increase in production (and sales) and tighter control of operational expenditure were the major contributors towards this rise in revenue and operating profit.

Commenting on the results, Dr. Patrick Allman-Ward, Chief Executive Officer, said:

“We have made a solid operational start to the year and have delivered on our strategy of increasing output through organic growth, resulting in a 12% increase in production output to 68,800 boepd. This reflects the quality of our assets in Egypt and the KRI and provides confidence for additional growth potential going forward.

"For the time being our capital expenditure will remain in-line with our collections. We are committed to further increasing production in Egypt and continue our discussions with the relevant authorities to resolve the matter of overdue receivables.

"In Kurdistan, we have increased production by 6% through increased supply of LPG. The arbitration initiated by us and our consortium partners commenced in January 2014 with the successful formation of the Tribunal and proceedings are now ongoing.

"Regardless, we continue to operate our gas production facilities in Khor Mor at full capacity to provide the much needed power supply to the people of the Kurdistan Region of Iraq.”

(Source: Dana Gas)