Abu Dhabi – Mubasher: Dana Gas, listed on the Abu Dhabi Securities Exchange (ADX), has announced a number of major milestones in the successful fulfillment of its growth strategy in Egypt.

“Most recently, the signing of Blocks 1 and 3 Concession Agreements in the Nile Delta provides Dana Gas with additional highly material growth opportunities in the country. This supplements a number of positive developments including the recent signing of the landmark Gas Production Enhancement Agreement (GPEA) and the large payment made by the Egyptian government in December towards outstanding receivables. Together, these milestones place the Company on a much stronger footing in Egypt from which it can benefit for its next phase of growth,” Dana said in its statement to the ADX.

Dana Gas CEO Patrick Allman-Ward stated “We are poised to deliver strong growth in Egypt in the short term as a result of the signing of the Gas Production Enhancement Agreement duly supported by the payment made by the Egyptian government last month. We have also secured medium- term growth potential through our successful bids for these two new exploration blocks in the Nile Delta. We see this positive momentum continuing and are excited about our exploration and development plans in Egypt.”

In December 2014 and following the signing of this GPEA agreement, a $60 million (AED 220 million) payment was made to Dana Gas by the Egyptian Government as part of its payments to the industry. This payment accounts for 28% of the total overdue receivables amounting to $212 million (AED 778 million), and will be used to fund future investment requirements and address operational expenses in Egypt.

“The GPEA allows the Company to significantly enhance production and to start gradually recovering its outstanding receivables in a phased manner over the next few years.” according to the statement.

Dana Gas is currently the sixth largest oil and gas operator in Egypt. In 2014, Dana succeeded in increasing average production of gas, LPG, condensate and crude oil to around 40,000 barrels of oil equivalent per day, an 8% increase over 2013 average production. Moreover, Dana has surpassed the milestone of producing over 100 million barrels of oil equivalent accumulatively since commencing its operations in Egypt in 2007, the statement added.

Worth noting, Dana also announced that its Board of Directors will convene on Wednesday, February 4, 2015 at 10 am at the Company’s headquarters in Sharjah to discuss the and approve the Company’s financials for FY14. In addition, the Board will review Dana’s strategy and work scheme for the period 2015-2017, added to projects in Egypt, Kurdistan – Iraq, and the UAE.

Dana Gas had reported a net profit of AED 472 million ($129 million) during the first nine months of 2014, compared to AED 443 million ($121 million) during the corresponding period in 2013.